When building a dividend portfolio, especially for passive income or retirement planning, monthly payouts are a key attraction. These can help smooth out cash flow and cover recurring expenses, giving you peace of mind. That’s why I’m accumulating shares of one often-overlooked monthly dividend stock on the TSX, Yellow Pages (TSX: Y). It may sound like a blast from the past, but this stock is paying handsomely — all while flying under the radar.
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The stock
Yellow Pages has undergone a major transformation over the last decade. Once known for its iconic thick directories, it now focuses on digital marketing services for small and medium-sized businesses across Canada. This includes website design, search engine marketing, online listings, and display advertising. The transition hasn’t been flashy, but it has been disciplined, and the company has emerged leaner and more focused.
Over the past 12 months, it’s down about 6% from its 52-week high, largely due to reduced top-line growth and general market hesitation around small-cap media companies. That said, the drop has only made its dividend yield more attractive. The company pays a monthly dividend of $0.0833 per share, or $1.00 annually, which equates to a yield of about 8.7% at writing. That’s significantly higher than most blue-chip dividend stocks on the TSX, many of which yield between 4% and 6%.
The numbers
Looking at the most recent earnings, Yellow Pages reported $50.8 million in revenue for the first quarter of 2025, which is down 7.6% from the same quarter in 2024. That’s not unexpected. The company is in a mature industry with ongoing revenue erosion. However, what stands out is that despite falling sales, Yellow Pages still reported a net income of $14.7 million, with strong margins and a solid balance sheet. The company’s operating efficiency remains a strength. Management has trimmed costs over the years and has kept expenses under control, which is why earnings have held steady even as revenue has declined.
Another highlight is the company’s continued commitment to shareholders. Its current dividend payout ratio is around 63%, meaning it’s not overextending itself to fund distributions. There’s room for flexibility and enough of a buffer in case profits take a temporary hit. The company also has a share buyback program in place. That reduces the total number of shares on the market, which supports earnings per share and often leads to better long-term stock price performance.
Considerations
There are always risks with companies undergoing long-term transitions. Yellow Pages is in a highly competitive digital marketing space, where it competes for online ad budgets. Its customer base of small businesses is also sensitive to economic shifts. But what makes Yellow Pages compelling is that it’s priced for caution while continuing to generate strong cash flow and rewarding shareholders along the way. The company has minimal debt and doesn’t require massive capital investments to keep its operations running, which makes it far more sustainable than many of its peers.
Another key point is that Yellow Pages pays its dividend monthly. That makes it especially appealing for retirees or anyone trying to build a portfolio with regular cash flow. You don’t have to wait quarterly to see results. This is income that hits your account every 30 days, no matter what the broader market is doing.
Bottom line
So, while many investors are chasing growth stocks or focusing on large-cap names, I’m quietly adding to my position in Yellow Pages. It’s not going to double overnight, but at today’s yield, it doesn’t have to. It just needs to keep doing what it’s doing: distributing cash, staying lean, and rewarding shareholders who see the value in consistency over hype.
