Dividend stocks can be a great way to build a steady stream of passive income. Even better are fundamentally strong stocks that pay out monthly dividends. These companies provide more frequent cash to support your regular expenses and allow you to reinvest more often, boosting your long-term returns.
With this background, here are the three TSX stocks that pay monthly dividends.
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SmartCentres REIT stock
SmartCentres REIT (TSX: SRU.UN) is one of the top stocks to generate steady monthly cash. Its defensive real estate portfolio, solid dividend payment history, ability to expand its net operating income (NOI), and high yield can enhance the income generation potential of your portfolio.
The real estate investment trust’s (REIT’s) extensive portfolio of grocery-anchored shopping centres helps keep its finances strong, even during economic downturns. Since many of its tenants run recession-resistant businesses, the REIT enjoys steady demand for its properties. This defensive portfolio allows SmartCentres to consistently generate solid NOI, supporting its reliable monthly payouts. The REIT currently offers a monthly payout of $0.154 per share, translating to a high yield of around 7.4%.
SmartCentres’s properties are strategically located, drawing high foot traffic and strong interest from both new and existing tenants. As of the fourth quarter (Q4) of 2024, the REIT boasted a remarkable 98.7% occupancy rate and over 91% tenant retention. Moreover, its rental spreads increased to 8.8%. These metrics reflect both the strength and appeal of its portfolio.
Looking ahead, the strong leasing activity, development of mixed-use properties, and large land bank will drive rental income and overall growth. Moreover, higher rental spreads and a solid retention rate position SmartCentres to sustain its NOI growth and pay regular cash to its shareholders.
Whitecap Resources stock
Whitecap (TSX: WCP) is another compelling income stock to consider now. This oil and gas company focuses on acquiring and managing petroleum and natural gas assets. Thanks to its high-quality portfolio of assets characterized by stable production and minimal base declines, the company generates solid cash flows, supporting its monthly payouts.
Currently, Whitecap pays a monthly dividend of $0.061 per share, translating to a robust yield of approximately 9.1%.
The company is investing to expand its asset base and focuses on improving drilling efficiency and controlling costs. These efforts will boost profitability and support its dividend payments. Whitecap also has a strong balance sheet and low maintenance capital requirements, giving it the flexibility to capitalize on new opportunities and continue rewarding shareholders.
A significant catalyst for future growth is Whitecap’s recent merger with Veren. This strategic move positions Whitecap as a leading player in light oil and condensate production. With this merger, the company gains scale, enhances operational efficiency, and strengthens its competitive edge in resource-rich regions. This will drive its profitability and monthly payouts.
Firm Capital Mortgage Investment Corporation
Firm Capital Mortgage Investment Corporation (TSX: FC) is another reliable stock offering monthly cash and high yield. This Canadian financial services company provides short-term mortgage loans and targets real-estate-related debt investments. Its focus on real estate-backed assets and loan syndication adds stability to its portfolio and reduces loan loss risks.
Notably, the firm’s earnings stem from interest income, lending fees, and other stable sources. Thanks to its steady earnings base, the company has been consistently paying dividends since 2013. Firm Capital pays a monthly dividend of $0.078 per share, reflecting a high yield of about 8%.
Firm Capital emphasizes first mortgages, which are considered less risky. Moreover, its solid underwriting capabilities support its bottom line. Additionally, the company strategically invests in real estate market areas that larger financial institutions often overlook. This targeted approach will help generate solid recurring cash flows and drive future monthly dividend payments.
