Monthly-paying dividend stocks generate a stable passive income that helps beat inflation. Besides, investors can reinvest the dividend payouts to earn superior returns. Against this backdrop, let’s assess three top monthly-paying dividend stocks that offer over 7% yields.
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SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX: SRU.UN) owns and operates 195 strategically located properties across Canada. Its tenant base also looks healthy, with 95% having a national and regional presence, while 60% offer essential services. Its top 10 tenants account for 45% of its rental income, with Walmart accounting for 23% of its revenue. So, the Toronto-based REIT enjoys a higher occupancy rate, which stood at 98.7% in the fourth quarter.
Moreover, SmartCentres continues to lease The Millway, a 458-unit purpose-built rental property and has leased 95% of the properties as of the end of last year. Furthermore, the REIT is constructing 1 million square feet of properties and has permission to develop 58.1 million square feet of mixed-use properties. These growth initiatives could boost its cash flows in the coming years, thereby supporting its future dividend payouts. SRU.UN’s monthly dividend payout of $0.1542/share translates into a dividend yield of 7.3%.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is another high-yielding REIT I am bullish on due to its highly defensive healthcare properties, solid tenant base, and long-term lease agreements. At the end of 2024, the REIT operated 172 healthcare properties, with a gross leasable area of 15.9 million square feet. It has signed long-term lease agreements with government-backed tenants, with a weighted average lease expiry of 13.6 years. All these factors have enabled the company to maintain a healthy occupancy rate of over 96% for eight consecutive quarters.
Further, NorthWest Healthcare sold $1.4 billion of non-core assets last year and utilized the net proceeds to lower its debt. Net debt fell 26% last year to $2.7 billion. Furthermore, the largest Canadian non-government owner of medical and healthcare facilities recently divested its stake in Assura, a United Kingdom-based healthcare REIT, for $240 million. On the cost front, it has reduced its workforce, resulting in a 20% decrease in G&A (general and administrative) expenses and an increase in its margins. Further, the company received an investment-grade credit rating in February, which could lower its borrowing expenses. Considering all these factors, I believe NorthWest Healthcare’s future dividend payouts will be more secure, making it an excellent buy. It currently pays a monthly dividend payout of $0.03/share, translating into a forward dividend yield of 7.4%.
Whitecap Resources
My final pick would be Whitecap Resources (TSX: WCP), which offers an attractive dividend yield of 8.9%. Last week, the oil and natural gas producer reported a healthy first-quarter performance, with its production exceeding its guidance. The company’s average production increased 6% year-over-year to 179,051 barrels of oil equivalent per day, driven by solid output from new wells and its base production exceeding forecasts. It made a capital investment of $398 million during the first quarter, drilling 86 wells. Bolstered by solid production, its funds flow grew 16.2% to $446.3 million during the quarter.
Moreover, Whitecap Resources and Veren are working on forming a combined entity, with Veren shareholders receiving 1.05 shares of Whitecap Resources for each share they hold. The merger would optimize field operations, improve supply chain efficiencies, and reduce operational overlap. Further, the combined company has also planned to drill 350 wells this year. Given its solid first-quarter performance and healthy growth prospects, Whitecap Resources may continue to pay dividends at a higher rate.
