This year, U.S. tariffs and reciprocal tariffs by its trading partners, including Canada, are the storm clouds in global stock markets. The heightened volatility will persist until the trade disputes end. Fortunately for Canadians, there are safer investment options amid a tariff regime.
Passive-income stocks like Extendicare (TSX:EXE) and Cardinal Energy (TSX:CJ) can transform $10,000 into recurring cash flow streams. The former continues to beat the market, while the latter has increased its long-term sustainability. More importantly, the payout frequency of both dividend stocks is monthly. I’d allocate $5,000 in each in today’s market.
| Company | Recent Price | No. of Shares | Dividend/Share* | Total Payout* | Frequency** |
| Extendicare | $13.24 | 377 | $0.50 | $188.50 | Monthly |
| Cardinal Energy | $6.11 | 819 | $0.72 | $589.68 | Monthly |
*Dividend per share and total payout are annual; **The combined total payout is $778.18 or $64.85 monthly.
Significant opportunities ahead
Extendicare provides care and services for seniors across Canada and operates a network of long-term-care (LTC) homes. At $13.24 per share, current investors enjoy a +25.87% year-to-date gain compared to the broad market’s -2.16%. The dividend yield is a decent 3.81%.
The $1.11 billion LTC provider finished strong in 2024. In the fourth quarter (Q4) of 2024, revenue and net operating income (NOI) rose 11.8% and 27.1% to $391.6 million and $47.5 million versus Q4 2023. The occupancy rate reached 98%. For the year, net earnings ballooned 121.2% to $75.2 million from a year ago.
Management is happy with the financial results, although the impact of tariffs on construction costs could affect future projects. Nonetheless, its chief executive officer (CEO), Michael Guerriere, said, “We are not looking to add new business lines. We see significant opportunities in home care and long-term care across Canada.”
Regarding dividends, Extendicare announced a 5% hike due to the improved performance and growth in all business segments. According to Guerriere, the dividend payout ratio dropped below 50%. “We aim to leverage our existing systems and cloud-based solutions to expand geographically and increase volume within our current strategy,” he added.
Long-term sustainability
Cardinal Energy has advanced +21.96% in the week of April 14 to 17, 2025, trimming its year-to-date loss to -3.06%. At $6.11 per share, you can partake in the lucrative 11.78% dividend. This small-cap stock is a TSX30 winner (ranked 29th) in 2024, the flagship program for Canada’s 30 top-performing stocks.
The $972.44 million oil and natural gas company boasts the lowest decline conventional asset base in Western Canada. In the 12 months ending December 31, 2024, total revenue (petroleum and natural gas) and earnings increased 3% and 5% to $605.3 million and $108.3 million compared to 2023.
Cardinal Energy is forward-following, as evidenced by the acquisition of several potential thermal Steam-Assisted Gravity Drainage (SAGD) properties. The properties have the potential to materially increase its low-decline production base and free cash flow (FCF). Besides thermal assets, the company has yet to develop multiple years of conventional inventory.
Total investments in the Reford, Saskatchewan SAGD project reached $74.3 million in 2024, including shop facility construction, site preparation, and water disposal wells. Cardinal Energy’s first thermal SAGD oil development project has a project life of 20 years and will further increase its long-term sustainability.
Recurring passive income
The market environment could improve once the tariff scenario changes for the better. Meanwhile, it would help to own shares of Extendicare and Cardinal Energy for uninterrupted monthly passive income.
