5 Canadian Monthly Dividend Stocks to Buy for Retirement Income

Want passive income? We’ve got you covered with these five monthly dividend stocks.

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Planning for retirement doesn’t have to be overwhelming. In fact, with the right mix of dividend-paying stocks, you can create a stream of consistent, tax-free income that adds up over time. A key to making this strategy work is focusing on companies that not only offer monthly dividends but also show strong fundamentals and a commitment to long-term growth. So today, let’s look at five TSX-listed stocks that meet that bar.

Boyd

Boyd Group Services (TSX:BYD) is one of North America’s largest operators of non-franchised collision repair centres. The company has been expanding steadily through acquisitions and organic growth. In the first quarter of 2025, Boyd reported revenue of $778.3 million, up 1% from the year before. That growth came despite a 2.8% decline in same-store sales, excluding the impact of foreign exchange.

Net earnings were $2.2 million, with adjusted net earnings per share of $0.10, down from $0.44 in Q1 2024. The lower earnings reflect higher technician costs and investment in operational improvements. While the short-term results are mixed, Boyd’s long-term prospects remain solid. As a consolidator in a fragmented industry, it certainly has room to grow.

SRU

SmartCentres REIT (TSX: SRU.UN) is a retail-focused real estate investment trust with a large portfolio of shopping centres anchored by major tenants. In recent years, it’s been transforming its properties into mixed-use communities to diversify revenue and boost long-term value.

In Q1 2025, SmartCentres posted net rental income of $136.8 million, up 4.6% year-over-year. Funds from operations (FFO) per unit rose to $0.56, a 17% increase. This growth was supported by higher occupancy rates and development income. With a solid balance sheet and long-term lease agreements, SmartCentres offers reliability in a sector that’s rapidly adapting. Its monthly payouts make it a natural fit for retirement income strategies.

Flagship

Flagship Communities REIT (TSX:MHC.UN) is a bit different from the typical Canadian REIT. It focuses on manufactured housing communities in the United States, where the demand for affordable housing continues to grow. This niche has shown resilience through various economic cycles.

In Q1 2025, Flagship reported adjusted funds from operations (AFFO) of $7.6 million, more than double the $3.5 million from a year earlier. AFFO per unit increased to $0.301 from $0.165, largely driven by new acquisitions and increased rental rates. Its U.S. exposure adds geographic diversification to a Canadian portfolio, and its consistent monthly payouts are appealing for a dependable income base.

Freehold

Freehold Royalties (TSX:FRU) offers exposure to energy markets but without the same level of risk as a traditional producer. It owns mineral titles and royalty interests in oil and gas properties across North America, meaning it collects revenue without bearing operating costs.

In the first quarter of 2025, Freehold reported revenue of $91 million and funds from operations of $68 million, or $0.42 per share. It paid out $44 million in dividends, or $0.27 per share, which indicates a healthy and sustainable payout. Average daily production hit 16,248 barrels of oil equivalent, with 65% coming from oil and natural gas liquids. For those seeking energy exposure with steady income, Freehold makes a strong case.

Chemtrade

Chemtrade Logistics Income Fund (TSX:CHE.UN) rounds out the list with a focus on industrial chemicals and services. It supplies essential products used in water treatment, pulp and paper, and oil refining. In Q1 2025, Chemtrade posted revenue of $466.3 million, up $48.1 million from the year before. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $120.1 million, a year-over-year gain of $10.1 million.

Distributable cash after maintenance capex reached $62.1 million, or $0.53 per unit. The fund’s payout ratio over the trailing 12 months was just 37%, indicating a well-covered distribution. This makes Chemtrade an attractive option for conservative income investors who want monthly payouts and solid operational performance.

Bottom line

Adding these five companies to your TFSA could give you both diversification and peace of mind. And all five pay monthly dividends, helping you create a consistent stream of tax-free retirement income. You’ll also benefit from potential capital appreciation, which makes each of these stocks not just a cash machine, but a long-term growth partner.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Boyd Group Services, Freehold Royalties, and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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