The Bank of Canada has lowered its benchmark interest rates by 225 basis points over the last 10 months to 2.75%. Moreover, economists are predicting two more 25-basis-point rate cuts this year. Amid falling interest rates, investors can look to invest in quality monthly-paying dividend stocks to earn a stable passive income. An investment of $8,000 in the following three stocks can earn you a stable passive income of over $50 monthly.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| SRU.UN | $25.33 | 105 | $2,660 | $0.1542 | $16.20 | Monthly |
| WCP | $7.55 | 353 | $2,665 | $0.0608 | $21.50 | Monthly |
| PZA | $14.37 | 185 | $2,658 | $0.0775 | $14.30 | Monthly |
| Total | $52.00 |
Source: Getty Images
SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is an excellent monthly-paying dividend stock to have in your portfolio due to its high dividend yield and reliable cash flows. Its 195 strategically located grocery-anchored properties and solid tenant base allow it to enjoy a healthy occupancy rate and generate reliable cash flows that support its dividend payouts. The REIT currently offers a monthly payout of $0.1542, translating into a forward dividend yield of 7.3%.
Moreover, SmartCentres REIT is expanding its asset base with 1 million square feet of properties in the construction stage. The REIT also has permission to develop another 58.1 million mixed-use properties, which could support its medium-to-long-term growth prospects. Further, the company continues to lease its Millway property, which had leased out 95% of its units at the end of last year. Given these growth prospects, I expect SmartCentres REIT to continue paying dividends at higher yields.
Whitecap Resources
Whitecap Resources (TSX: WCP) is an oil and natural gas-producing company that has expanded its asset base to boost production and financials. The company posted an impressive first-quarter performance last month, with its total production exceeding its guidance. Average production grew 6% compared to the previous year’s quarter to 179,051 barrels of oil equivalent per day. Solid production from its new wells and better-than-expected base production boosted its total production. Supported by its solid execution, the company’s fund flows grew 16.2% to $446.3 million.
Moreover, WCP is working on merging its operation with Veren, while Veren shareholders will receive 1.05 shares of WCP for each share they hold. The merger would optimize its field operations, improve supply chain efficiencies, and reduce operational overlap, delivering around $200 million in annual synergies. The combined entity also hopes to drill 350 wells this year. These growth initiatives and solid execution could support its future dividend payouts. Currently, the company offers a monthly payout of $0.0608/share, which translates into a forward dividend yield of 9.7% as of the May 5 closing price.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA) would be my final pick due to its reliable cash flows from the highly franchised restaurant business. The company operates 672 Pizza Pizza and 102 Pizza 73 brand restaurants through franchises, collecting royalties based on their sales. So, its financials are less prone to commodity price fluctuations and rising wages, thus allowing it to reward its shareholders with high dividends. Its monthly dividend payout of $0.0775/share translates into a forward dividend yield of 6.5%.
Moreover, PZA added 45 new restaurants to its royalty pool and removed 20 restaurants that ended their operations, thus raising its restaurant count by 25 units this year. Also, the company’s value offerings, innovative and creative bundles, and effective marketing initiatives could support higher footfalls, driving its same-store sales. Given its low-risk franchised business, expanding store counts, and healthy growth initiatives, I believe PZA could continue paying dividends at a healthier rate, making it an ideal addition to your income-seeking portfolio.
