This 3% Dividend Stock Pays Cash Every Single Month

This dividend stock might not have the highest dividend out there, but it certainly is one of the most stable.

If you’re building a passive-income portfolio, monthly dividend stocks can be a dream. Steady, reliable, and just the thing to smooth out market noise. And in Canada, one of the top picks in this category is Savaria (TSX: SIS). This is a dividend stock that not only delivers consistent monthly income but also continues to grow its business through smart strategy and strong execution. Let’s look at why.

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About Savaria

Savaria designs and manufactures accessibility equipment. Products that help people stay mobile and independent, especially as they age. The dividend stock operates in North America, Europe, and Asia and has built a reputation for quality and customer service. It’s not the kind of company that grabs headlines, but that’s exactly what makes it a gem for long-term investors.

Right now, Savaria offers a monthly dividend of $0.045 per share. Over a year, that adds up to $0.54. Based on the current share price, the dividend yield sits at around 2.8%. For a growing industrial stock with international exposure, that’s a solid figure, especially considering that the dividend is paid out every month. You don’t have to wait for quarterly payments, which is a nice perk if you rely on cash flow for budgeting or reinvestment.

The best part? This isn’t a shaky yield built on borrowed money. Savaria has consistently grown its earnings and revenue while maintaining a manageable debt load and a payout ratio that leaves room for reinvestment. The dividend stock’s most recent earnings report, released in May 2025, showed its best first quarter (Q1) on record. Revenue came in at $220.2 million, up 5.2% from Q1 of the previous year. That kind of top-line growth shows that demand for accessibility solutions remains strong.

Staying strong

Digging a bit deeper, North American sales in the Accessibility segment grew 11.8% year over year. In a time when many businesses are struggling with higher interest rates and slowing consumer demand, Savaria is quietly growing. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter was $40.6 million, up 17.2% year over year. That’s a strong sign that the business isn’t just growing revenue; it’s managing costs well and becoming more efficient at the same time.

Savaria isn’t sitting still, either. It recently announced a $30 million expansion of its manufacturing facility in Greenville, South Carolina. This site will help the dividend stock meet growing demand for its Eclipse home elevator, one of its most popular products. With an aging population and more people choosing to age in place, this kind of investment makes sense.

The dividend stock also has a healthy balance sheet. As of the end of 2024, net debt to adjusted EBITDA stood at 1.63. That’s a very manageable level, especially for a company in growth mode. It has access to nearly $243 million in available funds, giving it the flexibility to make further acquisitions or expand production as needed.

Foolish takeaway

It’s worth noting that Savaria has grown its dividend over time. While the current monthly payout of $0.045 has been in place since mid-2022, it previously increased the dividend regularly. As earnings continue to climb and operations expand, another increase could be on the horizon. For investors who value income and growth, that’s exactly what you want to see.

With a yield of around 2.8% and a solid outlook for continued growth, Savaria offers a strong combination of stability and opportunity. It’s a steady hand in a sometimes shaky market. And for investors who like getting paid every month, that’s worth paying attention to.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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