If you want to build wealth steadily, and also get paid while doing it, owning a high-quality monthly dividend stock could be one of the smartest strategies out there. Right now, one magnificent TSX stock is giving investors a rare chance to do exactly that. It’s down 18% from recent highs, but the core business is strong, the dividend is intact, and the monthly payout keeps coming. For long-term Foolish investors, this might be the window to lock in a better yield and own a piece of a company that’s built for consistent returns.
In this article, I’ll show you why this discounted dividend stock belongs in any income-focused portfolio and why I believe it has what it takes to pay monthly forever.
A top monthly dividend stock to hold forever
The monthly dividend stock I believe offers a great mix of income and future upside potential right now is Northland Power (TSX:NPI).
This Toronto-headquartered utility player is a global clean energy firm that generates electricity from wind, solar, battery storage, and efficient natural gas. NPI stock is currently trading at $20.24 per share with a market cap of $5.3 billion. Despite being down 18% from its 52-week high, it offers a juicy annualized dividend yield of nearly 6%, and yes — it pays monthly.
Much of the recent pullback in NPI stock could be attributed to unusually low wind resources in Europe, some of the weakest in a decade. While that did affect Northland’s offshore wind revenues in the latest quarter, the company’s North American onshore wind and natural gas assets more than picked up the slack. Combine that with the market’s reaction to ongoing macroeconomic uncertainties, and the decline becomes easier to understand.
Stable operations despite headwinds
In the first quarter of 2025, Northland generated $649 million in revenue and posted $361 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Although that was lower from a year ago due to weaker wind in Europe, the company’s overall business still held firm. With the help of solid performance from its natural gas and onshore assets, NPI’s quarterly cash provided by operations actually grew by over $120 million year over year.
Northland also maintained a free cash flow of $0.60 per share for the quarter. That’s important because it backs its reliable monthly payouts. With over $1.1 billion in liquidity, its dividend payouts remain very well supported.
Big projects point to a stronger tomorrow
Currently, Northland is in the middle of bringing three large-scale projects to life: Oneida, Hai Long, and Baltic Power. The 250-megawatt Oneida battery project just came online ahead of schedule. Meanwhile, Baltic and Hai Long offshore wind farms are expected to be operational in 2026 and 2027, which could dramatically boost the company’s energy output and cash flow. Once these projects are fully operational, Northland’s adjusted EBITDA is projected to rise to between $1.6 billion and $1.8 billion, up from roughly $1.3 billion today.
With nearly 10 gigawatts of additional capacity in its development pipeline, Northland is building for a future that could make it a monthly dividend stock to hold forever.
