When it comes to owning stocks that are reliable and can generate significant passive income, there’s no better option than high-quality dividend stocks that return cash to you every single month.
And while there are many Canadian stocks that pay dividends, only a handful offer the combination of reliability, long-term growth potential, and a high yield that makes them truly ideal investments.
The majority of companies that pay dividends return cash to investors quarterly. Earning cash from your investments every quarter can be great for long-term wealth accumulation. However, it’s not the best option for investors looking for consistent and predictable cash flow. That’s why monthly dividend stocks are so attractive.
Whether you’re looking for passive income to reinvest and grow your portfolio faster or want regular payouts to cover your living expenses, finding high-quality monthly dividend stocks to buy and hold for the long haul is essential.
So, with that in mind, here are two of the best Canadian stocks that offer attractive yields, monthly dividends, and long-term reliability.
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One of the best Canadian dividend stocks to buy for monthly income
If you’re looking to find stocks that will generate passive income every month, real estate investment trusts (REITs) are a great place to start. And while there are several high-quality REITs to consider, one of the very best is CT REIT (TSX: CRT.UN).
Although there are several reasons why CT REIT is an ideal investment, the main reason is due to its relationship with Canadian Tire.
Canadian Tire is both the majority owner of CT REIT and accounts for over 90% of CT REIT’s rental income, giving it incredibly predictable cash flow.
So, unlike many other retail REITs that have struggled in recent years due to economic headwinds like the pandemic or rising interest rates, CT REIT has remained resilient, thanks to its long-term leases with one of the most established retailers in Canada.
Plus, in addition to the reliable cash flow it generates from Canadian Tire, CT REIT also has a tonne of organic growth potential as it expands its portfolio and builds new properties.
Therefore, when you consider the long-term growth potential it has, the current yield of 6.4% it offers and the fact that it’s increased its distribution every year for a decade, it’s certainly one of the best monthly dividend stocks to buy today.
A top royalty stock with a yield of 6.8%
In addition to CT REIT, another high-yield dividend stock that returns cash to investors each month is Pizza Pizza Royalty (TSX: PZA).
As a royalty stock, Pizza Pizza doesn’t actually operate the restaurants itself but collects a percentage of sales, making it an extremely profitable and low-cost business model.
It’s this business model that allows Pizza Pizza to consistently pay out nearly all of the cash flow it generates, which is why it’s one of the best monthly dividend stocks that Canadian investors can buy.
In addition to its business model, though, Pizza Pizza also has an impressive track record of finding new ways to grow its operations and continue generating strong revenue in what’s traditionally a highly competitive industry.
With one of the best-known brands in Canada, low-cost offerings compared to many of its peers and convenient operating times, Pizza Pizza continues to be a go-to option for quick, affordable comfort food, making it much more recession-resistant than its competitors.
Plus, not only does it return cash to investors every single month, but it also offers a compelling dividend yield of roughly 6.8%.
So, if you’re looking for a top Canadian dividend stock that will help boost the passive income your portfolio is generating, Pizza Pizza is undoubtedly one of the best to consider.
