Investing in fundamentally strong dividend stocks can help Canadians begin a passive-income stream at a low cost. As dividend payments are not guaranteed, it’s crucial to look beyond a company’s forward yield and analyze other factors such as the payout ratio, cash flow growth, and debt levels.
In this article, I have identified three top TSX stocks that offer you a monthly payout in 2025.
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TSX monthly dividend stock #1
Valued at a market cap of $2.5 billion, Exchange Income (TSX: EIF) offers you a tasty dividend yield of 5.4%. Exchange Income is part of the aerospace manufacturing sector and has focused on accretive acquisitions to accelerate top-line growth.
Exchange Income reported record results for 2024, posting its highest-ever adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), free cash flow, and adjusted net earnings despite what Chief Executive Officer Mike Pyle called “challenging” macroeconomic conditions.
EIC’s fourth-quarter revenue reached $688 million, while adjusted EBITDA hit $167 million and free cash flow was $111 million — all quarterly records for the company.
The strong performance was primarily driven by EIC’s Aerospace & Aviation segment, with the Essential Air Services and Aircraft Sales & Leasing business lines leading growth. The Manufacturing segment showed “positive momentum” in the latter half of 2024, particularly in the multi-storey window solutions business.
In a significant move, EIC recently announced its agreement to acquire Canadian North, which Pyle called “one of the most significant” acquisitions in company history. The deal will expand EIC’s northern aviation presence with highly complementary routes.
Looking ahead, EIC expects adjusted EBITDA between $690 million and $730 million for fiscal 2025, excluding the Canadian North acquisition, which is still subject to regulatory approval.
TSX monthly dividend stock #2
The second TSX dividend stock on the list is Whitecap Resources (TSX: WCP), which offers you a forward yield of almost 9%. Whitecap is engaged in the acquisition, development, and production of petroleum and natural gas properties and assets, primarily in Western Canada.
The mid-cap energy company reported “exceptional” performance for 2024, with production results that consistently exceeded expectations, leading to four guidance increases throughout the year.
The Canadian oil and gas producer returned over $560 million to shareholders in 2024, including $430 million in dividends and $130 million in share repurchases.
Whitecap’s unconventional assets showed particular strength, with Montney and Duvernay wells outperforming internal expectations by over 20% and 15%, respectively.
Whitecap unlocked value from its infrastructure portfolio in 2024, selling down partial interests in three facilities for total proceeds of $520 million while maintaining operatorship.
TSX monthly dividend stock #3
Sienna Senior Living (TSX: SIA) provides senior living services in Canada. It operates through retirement and long-term care segments and offers independent living, supportive living, assisted living, memory care, and more.
Sienna Senior Living reported strong fourth-quarter results, marking its eighth consecutive quarter of net operating income (NOI) growth amid rising demand for senior housing across Canada.
The company saw adjusted same-property NOI increase by 29% in its long-term Care segment and 15.3% in its retirement segment during Q4. Same-property occupancy in the retirement segment rose by 300 basis points year over year to 92.9%.
Sienna announced two new acquisitions: Wildpine Retirement Residence in Ottawa for approximately $48 million and Kawartha Gardens, a long-term care home in Mississauga, for about $32.6 million.
It also has $300 million in acquisitions under contract and expects to complete two development projects by the end of 2025, which should drive cash flows and dividends higher.
For 2025, Sienna expects same-property NOI growth of approximately 10% in its retirement segment, with margins improving by 100-150 basis points compared to 2024. Today, it offers you a dividend yield of 5.7%.
