While market corrections can be frustrating, they often unlock compelling opportunities for income investors. One phenomenal monthly dividend stock is currently down 24% from its 52-week high despite offering dependable payouts and a solid long-term growth track record. With monthly dividend distributions and a yield that’s becoming even more attractive at current prices, this TSX stock is starting to look like it’s been oversold. For investors seeking steady income and a chance to buy at a discount, this stock looks really attractive.
In this article, I’ll highlight why this monthly dividend stock, Whitecap Resources (TSX:WCP), could be a smart buy right now and a core holding for the long term. But first, let’s take a closer look at the key reasons behind WCP stock’s recent performance.
Image source: Getty Images
A monthly dividend stock to buy on the dip right now
Shares of Whitecap Resources are currently trading around $8.58 apiece, down roughly 17% over the past 12 months. At current levels, the company has a market cap of $10.6 billion and an eye-catching annualized dividend yield of 8.5%, with monthly payouts that income investors love.
The pressure on WCP stock comes down to lower oil prices and overall energy sector swings — even though Whitecap’s fundamentals remain strong. TSX investors have largely been hesitant around energy stocks this year, and Whitecap has simply been caught up in that broader trend.
Solid growth trends give investors a reason to buy
In the most recent quarter ended in March 2025, Whitecap posted an 8.6% YoY (year-over-year) jump in its total revenue to $855.2 million. During the quarter, the company’s adjusted earnings came in at $0.27 per share, and its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 55.5% from just over 44% a year ago. Similarly, its net profit margins also more than doubled on a YoY basis.
Whitecap’s free cash flow turned positive last quarter at $48 million, compared to a loss last year. So, despite the lagging stock price, WCP’s actual business performance is showing strong momentum.
Strategic growth moves that could set the stock up for a comeback
Whitecap recently closed its partnership with Veren, which created the seventh-largest oil and gas producer in Canada. The combined company is now the largest landholder in Alberta’s Montney and Duvernay formations and a major player in Saskatchewan light oil. Its asset base now spans both conventional and unconventional energy plays, giving Whitecap a long runway for decades of production.
In addition, the company has upped its 2025 production guidance and is pouring capital into high-return drilling in areas like Kaybob, Musreau, and Kakwa. Meanwhile, it’s disposing of non-core assets and maintaining a disciplined approach to capital spending while continuing to pay that juicy dividend.
For income-focused investors, this means a rare combo of high yield, monthly payouts, and long-term growth potential. And with shares still trading at a discount, Whitecap offers a rare shot at locking in that monthly income stream.
