Building a portfolio of dividend stocks can be a great way to begin amassing wealth for your long-term goals, whether a big purchase or a retirement plan. The TSX has plenty of dividend stocks available for you to invest in. The truly fundamentally strong stocks are those you can rely on to receive frequent payouts without a high risk of payouts being paused, slashed, or stopped indefinitely.
Suppose you’re looking for additional passive income to line your account balance each month. In that case, some of the top monthly dividend stocks can definitely be part of your self-directed investment portfolio.
Today, I will discuss two monthly dividend stocks you can consider investing in right now.
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Whitecap Resources
Whitecap Resources Inc. (TSX:WCP) is a $5.1 billion market capitalization company engaged in acquiring, developing, and producing crude oil and natural gas. It can be a great pick for investors seeking monthly passive income through dividends they can rely on for years. The Calgary-based energy company produces crude oil, natural gas, and natural gas liquids across Western Canada.
The first quarter of the fiscal year saw the company report an 8.5% year-over-year jump in its revenue from petroleum and natural gas. The company’s quarterly profit was more than twofold from the same period in the previous fiscal year, indicating stronger performance by the stock. As of this writing, WCP stock trades for $8.65 per share and pays its investors at a massive annualized 8.4% dividend yield.
SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is a $4.6 billion market capitalization Real Estate Investment Trust (REIT). The fully integrated commercial and residential REIT has over 170 properties in communities across Canada. It is developing complete, connected, and mixed-use communities in its portfolio of retail properties. If you want to generate passive income like a landlord but without the hassle or massive cash outlay, investing in a REIT like SmartCentres can be a smart decision.
SmartCentres REIT doesn’t offer much in terms of rapid growth through capital gains. However, its portfolio of recession-resistant properties virtually guarantees monthly income that you can count on to grow your wealth. The company has a strong portfolio of properties anchored by high-quality tenants that deliver stable cash flows which the trust can use to fund expansions and pay regular monthly dividends.
As of this writing, SRU.UN stock trades for $25.65 per share and offers dividends that have a juicy 7.2% annualized yield.
Foolish takeaway
If you’re seeking monthly dividend income that offers high-yielding returns and the ability to continue paying out for years to come, identifying the right investment opportunities is crucial. By investing in shares of the right stocks, you can build a sizeable portfolio to align with your goals. Creating such a portfolio in a Tax-Free Savings Account (TFSA) will help you enjoy all the earnings from your investments without incurring taxes.
Against this backdrop, WCP stock and SRU.UN stock can be excellent foundational holdings for your self-directed investment portfolio.
