Although the TSX Composite Index has climbed 3.8% so far in 2025 after posting an 18% gain last year, concerns about a global trade war, inflation, and uncertain monetary policy are keeping investors on edge. In this volatile environment, reliable income-generating investments could provide stability and steady cash flow.
And you can create a reliable source of passive income by investing in high-quality Canadian monthly dividend stocks. These fundamentally strong TSX-listed companies reward their investors with consistent income every month, making them an excellent choice for those looking to boost passive income or reinvest dividends for stronger long-term returns. In this article, I’ll highlight two top Canadian stocks that pay you a cheque every month.
Exchange Income stock
Exchange Income (TSX:EIF) could be a great pick for long-term investors looking for steady monthly payouts. This Winnipeg-headquartered firm owns and operates businesses that keep essential air services running, lease aircraft, and manufacture specialized products. That’s a mix that provides resilience, even when the economy gets bumpy.
After climbing by 14.3% over the last year, EIF stock currently trades at $52.99 per share with a market cap of $2.6 billion. It pays a monthly dividend, offering an annualized yield of 4.9%, which makes it a solid choice for income-focused investors.
In its most recent quarter, Exchange Income pulled in $709.9 million in revenue with a 3.2% YoY (year-over-year) jump. Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also saw a 15% YoY increase to reach $192.9 million. Last quarter, its adjusted net profit margin also expanded to 8.6% from 8% a year ago, which is a good sign of stability.
Of late, the company has been making smart acquisitions, like Spartan Mat, to strengthen its core operations. EIF expects its 2025 adjusted EBITDA to be in the range of $690 million to $730 million. These strong fundamentals make it a reliable monthly dividend stock to hold for the long term.
RioCan REIT stock
Now, let’s talk about RioCan REIT (TSX:REI.UN), another solid stock that sends a cheque your way every month. This Toronto-based real estate investment trust (REIT) is one of Canada’s biggest players in commercial real estate, owning and managing a portfolio of high-quality retail and mixed-use properties. RioCan stock is currently trading at $18.69 per share with a market cap of $5.6 billion. It offers an attractive 5.9% annualized dividend yield.
In the quarter ended in September 2024, the REIT’s revenue rose 5.5% YoY to $286.3 million. Meanwhile, its adjusted net profit skyrocketed by 232% from last year, showing strong earnings momentum. That’s not all, RioCan’s committed occupancy rate hit a record-breaking high of 97.8% last quarter, reflecting robust demand for its properties.
Of late, RioCan REIT has been reshuffling its tenant mix, adding more resilient retailers at higher rents to enhance the stability of its revenue base. It’s also taking a cautious but strategic approach to development by focusing on high-traffic urban centres while pausing new mixed-use projects to optimize capital allocation. With its strong leasing momentum and commitment to steady growth, RioCan stands out as one of the best monthly dividend stocks to hold in your portfolio.
