TSX stocks that pay monthly dividends can be an excellent option for investors seeking consistent passive income. Unlike quarterly payouts, monthly dividends provide a more frequent income stream, making them ideal for covering regular expenses or reinvesting to maximize long-term returns.
However, one should focus on dividend stocks that are backed by fundamentally strong businesses and can maintain and even grow their payouts over time.
Against this backdrop, here are three top monthly dividend stocks for passive income.
Monthly dividend stock #1
Northwest Healthcare Properties REIT (TSX:NWH.UN) is an attractive monthly income stock. The real estate investment trust (REIT) has a high-quality portfolio of healthcare properties, including hospitals, medical offices, outpatient centres, and specialized healthcare facilities, throughout major markets in the Americas, Europe, and Asia-Pacific.
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, equating to a high yield of approximately 7.4% based on its closing price of $4.84 as of March 3, 2025.
Notably, Northwest Healthcare’s tenants are primarily large hospital operators or healthcare practitioners supported by government funding. Thanks to its high-quality and diversified tenant base, solid occupancy rate of 96.1%, and substantial rent collection, the company is poised to generate strong same-property net operating income, supporting its payouts. Moreover, it will likely benefit from long-term and inflation-adjusted leases.
The demand for healthcare real estate will likely increase due to aging populations and rising urban migration. Additionally, Northwest Healthcare’s strategic initiatives, including optimizing its portfolio, paying down debt, and streamlining operations, will likely strengthen its financial position and support future dividend payouts.
Monthly dividend stock #2
Whitecap Resources (TSX:WCP) is another compelling stock that pays regular cash in the form of monthly dividends. This oil and gas company pays a monthly dividend of $0.061 per share, translating into a solid yield of 7.8%.
The company’s ability to generate solid financials, led by its high-quality asset base and higher production, supports its payouts. Further, its efficient cost management, solid balance sheet, and increasing funds flow per share enable it to return significant cash to its investors.
Since 2013, Whitecap has distributed about $2.2 billion in dividends to its shareholders. Further, Whitecap aims to continue increasing its dividend payouts, backed by growing funds flow and a long-term production growth target of 3% to 8% per share.
Its focus on high condensate production and drilling efficiencies will enhance operational profitability, enabling it to generate substantial free cash flow. In addition, Whitecap’s low-maintenance capital needs and focus on debt reduction support sustainable earnings and reliable monthly payouts.
Monthly dividend stock #3
Investors seeing monthly income could add Pizza Pizza Royalty (TSX:PZA) stock to their portfolios. The company, which operates and franchises a network of quick-service restaurants, offers a monthly dividend of $0.077 per share, reflecting a high yield of about 7%.
Pizza Pizza’s diversified revenue base, including royalty income and food and beverage sales, supports its overall financials and drives dividend payments. Further, its high payout ratio enables it to return more cash to its shareholders.
The company’s focus on driving guest traffic and increasing the average customer cheque will drive its same-store sales in the coming years. Further, Pizza Pizza’s focus on expanding its restaurant network and using third-party food delivery platforms will likely broaden its customer base. Additionally, Pizza Pizza’s strategic menu pricing initiatives, in-store pickup channel, and focus on innovation bode well for future growth. At the same time, Pizza Pizza’s investments in operational efficiency will boost its earnings and bolster its cash flows, driving its payouts.
