Investing in TSX stocks that pay dividends every 30 days can generate solid passive income to meet regular financial commitments. Moreover, reinvesting these dividends more frequently will likely boost overall returns in the long term.
Against this backdrop, here are three monthly dividend leaders with fundamentally strong businesses to buy and hold for regular cash.
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Monthly dividend stock #1
Northwest Healthcare Properties REIT (TSX:NWH.UN) is one of the leading monthly dividend stocks. In addition to monthly payouts, it offers a high yield, making it an attractive investment. The real estate investment trust (REIT) holds a diversified portfolio of healthcare properties, including hospitals, medical offices, outpatient centres, and specialized healthcare facilities.
Its defensive real estate portfolio adds stability to its financials, drives occupancy, and supports its payouts. This REIT currently offers a monthly dividend of $0.03 per share, reflecting a high yield of approximately 7.8% based on its closing price of $4.59 as of February 11, 2025.
Northwest Healthcare’s high occupancy rate (about 96%), diversified tenant base, and substantial rent collection drive its same-property net operating income (NOI). Notably, its tenants are mostly large hospital operators supported by government funding. Moreover, it benefits from long-term and inflation-adjusted leases that add stability and drive cash flows.
The REIT is focusing on optimizing its portfolio and streamlining its business to strengthen its financial position. Moreover, its focus on debt repayment is a positive and augurs well for future payouts.
Monthly dividend stock #2
Investors can consider Pizza Pizza Royalty (TSX: PZA) stock for monthly cash. This TSX monthly dividend leader operates and franchises a network of quick-service restaurants and offers a monthly dividend of $0.077 per share. This equates to an impressive yield of 7.1%, near the current market price.
Pizza Pizza’s high payout ratio enables it to return more cash to its shareholders. Further, its diversified revenue base, including royalty income and food and beverage sales, supports its overall financials and dividend payments.
The company is focusing on driving guest traffic and increasing the average customer cheque, which will support its same-store sales. Further, Pizza Pizza’s focus on expanding its restaurant network and using third-party food delivery platforms will likely broaden its customer base. Also, its strategic menu pricing initiatives will further enhance its financials.
Additionally, Pizza Pizza’s in-store pickup channel and focus on innovation bode well for future growth. The company’s ongoing investments in food quality and operational efficiency are expected to boost its earnings and bolster its cash flows, driving its payouts.
Monthly dividend stock #3
Whitecap Resources (TSX: WCP) is another compelling dividend stock that generates monthly cash. This oil and gas company pays a dividend of $0.061 per share every month, translating into a solid yield of 7.4%. The company’s solid financials and payouts are driven by its high-quality assets, growing production volumes, and efficient cost management.
Whitecap’s ability to consistently increase its production and funds flow per share enabled it to return significant cash to its investors. Since 2013, Whitecap has distributed about $2.1 billion in dividends to its shareholders, and this trend will likely continue.
Its focus on high condensate production and drilling efficiencies will enhance operational profitability, enabling it to generate substantial free cash flow and offer higher payouts. In addition, Whitecap’s low maintenance capital needs, focus on debt reduction, and strong balance sheet support sustainable earnings and reliable monthly payouts.
