While there are several ways to generate income from your investments, few are as satisfying or as consistent as receiving dividends every single month. For Canadian investors, monthly dividend stocks on the TSX offer a practical solution for smoothing out cash flow, whether you’re reinvesting or using the income to fund everyday expenses.
In this article, I’ll highlight two top Canadian dividend stocks that pay monthly and could help you build a steady, reliable income stream for the years ahead.
Choice Properties REIT stock
If you want consistent payouts and staying power, Choice Properties REIT (TSX:CHP.UN) could be an attractive stock to consider. This real estate investment trust (REIT) owns and operates a large portfolio of high-quality commercial and residential properties across Canada, with a strong focus on retail and industrial assets leased to necessity-based tenants like Loblaw.
Choice stock has climbed 7% over the last two months to currently trade at $14.07 per unit, with a market cap of $10.2 billion. It has an annualized dividend yield of 5.5%. In a positive move for income investors, the REIT recently raised its annual distribution to $0.77 per unit, marking the third straight year of increases.
For the full year 2024, a 3.2% YoY (year-over-year) increase in its same-asset net operating income (NOI) on a cash basis helped Choice Properties deliver a net profit of $784.4 million. At the same time, its funds from operations, a key measure for REITs, rose 3% YoY to $1.032 per unit.
On the operation side, its occupancy across the portfolio remained high at 97.6%. Adding to the optimism, the REIT’s leasing spreads were solid last year, especially in the industrial segment, which saw a 37% YoY uplift on long-term renewals.
Going forward, the trust continues to accelerate with strategic developments, like its Loblaw distribution centre in Caledon and expects a further 2% to 3% growth in same-asset NOI in 2025. With a stable tenant base and a focus on necessity-based real estate, Choice Properties stands out as a low-volatility income pick that could keep paying you month after month.
Exchange Income stock
For income investors, Exchange Income (TSX:EIF) could be another name that stands out from the crowd. The Winnipeg-based company runs a mix of aviation services and specialized manufacturing businesses, with a focus on steady cash flow and reliable growth.
EIF stock currently trades at $50.19 per share with a market cap of $2.6 billion. What makes it especially appealing to income seekers is its monthly dividend, which offers an attractive 5.2% annualized yield.
Last year, the company reported record numbers, with $2.66 billion in revenue and $628 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), up 13% YoY. Similarly, its adjusted EBITDA margin also expanded to 23.6% in 2024 from 22.2% in 2023.
Meanwhile, its free cash flow hit a record high, supporting its consistent dividend payouts. Besides consistent growth in aircraft leasing and aviation sales, the strong performance of Exchange Income’s essential air services and medevac contracts further brightens its long-term growth outlook.
