I’d Put $7,000 in This Reliable Monthly Dividend Payer – Immediately

The following three monthly paying dividend stocks can deliver a reliable passive income.

| More on:
Retirees sip their morning coffee outside.

Source: Getty Images

Monthly paying dividend stocks are an excellent strategy for earning a stable passive income in this low-interest rate environment. These regular payouts act as a hedge against inflation. However, investors must be careful, as dividends are not guaranteed, and companies can slash or eliminate their dividend payouts during economic and financial downturns. Against this backdrop, let’s look at three top monthly paying dividend stocks I am bullish on.

SmartCentres Real Estate Investment Fund

SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is my first pick due to its strategically located grocery-anchored properties, solid tenant base, higher retention, and healthy occupancy rate. In the recently reported first-quarter earnings, the REIT leased out 178,408 square feet of vacant space, thus raising its occupancy rate to 98.4%. Also, the same properties’ net operating income (NPI) increased by 4.1% during the quarter amid demand growth and strong retention. Supported by these solid operating performances, its net rental income and others grew 4.6% year-over-year, while its funds from operations (FFO) per unit grew 16.7%.

Moreover, SmartCentres REIT has a solid developmental pipeline, with 59.1 million square feet of development permissions and 1 million square feet of properties under construction. With several properties set to open in the coming quarters, I expect the company’s financial uptrend to continue, supporting its future dividend payouts. Meanwhile, the REIT currently pays a monthly dividend of $0.1542/share, translating into a forward dividend yield of 7.2%.

Sienna Senior Living

Another top monthly paying dividend stock I am bullish on is Sienna Senior Living (TSX:SIA), which reported a solid first-quarter performance last week. Its adjusted revenue grew 12.1% to $241.8 million amid the growth of the retirement and LTC (long-term care) segments. Higher occupancy, favourable rental rate adjustments, and increased care revenue boosted the company’s retirement segment revenue. Meanwhile, increased direct care and private accommodation funding boosted its LTC revenue. Supported by topline growth, its AFFO (adjusted fund flows from operations) per unit grew 7.7% to $0.287/share.

Moreover, Sienna has completed $250 million worth of acquisitions this year and is working on acquiring Hazeldean Gardens Retirement Residence in Ottawa for $85.3 million. Besides, the retirement home operator is focusing on operational improvements and strengthening its supply/demand fundamentals to drive its occupancy rate to 95%. Also, the company is working on asset optimization, improving operational efficiency, and marketing and sales initiatives to drive its adjusted net operating income. Siennan raised $144 million in February and ended the quarter with liquidity of $445 million. So, the company is well-positioned to fund its organic and inorganic growth initiatives. Considering all these factors, I believe Sienna’s future dividend payouts are safe. Its monthly dividend payout of $0.078/share translates to a forward dividend yield of 5.3%.

Savaria

Savaria (TSX:SIS) is another reliable monthly paying dividend stock to have in your portfolio. The company, which offers accessibility solutions to the physically challenged, posted an impressive first-quarter performance last week. Its topline grew 5.2% to $220.2 million amid favourable currency translation, organic growth, and the contribution of Matot, which was acquired last year. Meanwhile, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 17.2%, while the adjusted EBITDA margin expanded by 190 basis points to 18.5%.

Revenue growth and an expansion of gross margin drove the company’s adjusted EBITDA margin. During the quarter, the company generated $31.3 million of cash from its operations, which it utilized to make capital investments, pay interest and dividends, and lower its debt levels.

Meanwhile, the demand for accessibility solutions is rising driven by an aging population. The company focuses on developing new products and strengthening its production capabilities amid increasing demand. The management expects revenue growth of 5–8% this year amid volume growth, price increases, new product launches, and favourable currency translations. Its adjusted EBITDA margin could fall between 17% and 20%. Considering its solid financials and healthy growth prospects, the company, which currently offers a forward dividend yield of 2.7%, could continue rewarding its shareholders with healthy dividend yields.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Concept of multiple streams of income
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $400 Per Month?

This fund's fixed $0.10-per-share monthly payout makes passive-income math easy.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

How to Turn Losing TSX Telecom Stock Picks Into Tax Savings

Telecom stocks could be a good tax-loss harvesting candidate for year-end.

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

2 Dividend Growth Stocks Look Like Standout Buys as the Market Keeps Surging

Enbridge (TSX:ENB) stock and another standout name to watch closely in the new year.

Read more »

a person watches stock market trades
Dividend Stocks

For Passive Income Investing, 3 Canadian Stocks to Buy Right Now

Don't look now, but these three Canadian dividend stocks look poised for some big upside, particularly as interest rates appear…

Read more »

Dividend Stocks

Got $7,000? Where to Invest Your TFSA Contribution in 2026

Putting $7,000 to work in your 2026 TFSA? Consider BMO, Granite REIT, and VXC for steady income, diversification, and long-term…

Read more »

Young adult concentrates on laptop screen
Dividend Stocks

A Beginner’s Guide to Building a Passive Income Portfolio

Are you a new investor looking to earn safe dividends? Here are some tips for a beginner investor who wants…

Read more »

container trucks and cargo planes are part of global logistics system
Dividend Stocks

Before the Clock Strikes Midnight on 2025 – TSX Transportation & Logistics Stocks to Buy

Three TSX stocks are buying opportunities in Canada’s dynamic and rapidly evolving transportation and logistics sector.

Read more »

some REITs give investors exposure to commercial real estate
Dividend Stocks

The Ideal Canadian Stock for Dividends and Growth

Want dividends plus steady growth? Power Corporation offers a “quiet compounder” mix of cash flow today and patient compounding from…

Read more »