3 Great Investments for Monthly Dividend Income

Investing in monthly dividend stocks such as Exchange Income and Savaria should help Canadian investors create a passive-income stream in 2025.

Investing in quality dividend stocks that offer you a monthly payout can help you begin a passive-income stream at a low cost. In addition to consistent dividend income, investors should also benefit from long-term capital gains.

In this article, I have identified three TSX dividend stocks that offer you a monthly payout in June 2025.

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Monthly dividend stock #1

Exchange Income (TSX: EIF) continues to demonstrate exceptional resilience and stability as an investment, setting first-quarter (Q1) records across all key metrics including revenue ($668 million), adjusted earnings before interest, tax, depreciation, and amortization ($130 million), and free cash flow ($81 million).

Exchange Income’s business model is diversified, as it offers essential aviation and manufacturing services, which somewhat shields it against economic volatility.

Despite a challenging macro environment, Exchange Income reaffirmed its EBITDA guidance for 2025, which stands at $710 million at the midpoint estimate.

Its essential services, including medevac operations, northern aviation routes, and specialized manufacturing, create stable, recurring revenue streams with limited cyclical exposure.

Exchange Income’s balance sheet strength supports growth, with an upgraded $3 billion credit facility that provides over $1 billion in available liquidity for acquisitions and expansion.

The pending Canadian North acquisition will provide comprehensive coverage across northern Canada, positioning the company to benefit from increased defence spending and Arctic development initiatives.

Strong operational momentum is characterized by robust demand for composite matting products (sold out through 2025), growing aircraft leasing portfolios, and expanding medevac contracts, making Exchange Income an attractive defensive growth investment.

In 2025, Exchange Income offers you a forward yield of 4.7%. Moreover, its annual dividends have risen from $1.82 per share in 2015 to $2.64 per share in 2024. Analysts expect the payout to increase to $2.92 per share in 2027.

Monthly dividend stock #2

Savaria (TSX: SIS) presents an attractive dividend investment opportunity, backed by strong fundamentals and consistent cash generation. In Q1 of 2025, it reported an 18.5% EBITDA margin, demonstrating exceptional operational efficiency through its Savaria One transformation initiative, now in its fifth consecutive quarter.

Savaria’s defensive business model in accessibility and patient care equipment benefits from powerful demographic tailwinds, particularly North America’s aging population.

This creates steady, recession-resistant demand as aging-in-place needs remain essential regardless of economic conditions. With 11.8% growth in North America and products that are USMCA-compliant (United States-Mexico-Canada Agreement), Savaria is well-positioned against trade uncertainties.

In the March quarter, Savaria reported a free cash flow of $10.3 million and is expected to end the year with a free cash flow of $71.6 million. Comparatively, its annual dividend expense is around $36 million, indicating a payout ratio of 50%.

While the TSX dividend stock offers a yield of 2.9%, these payouts are forecast to increase from $0.53 per share in 2024 to $0.57 per share in 2026.

Monthly dividend stock #3

The last TSX stock on the list is First National (TSX: FN) offers you a yield of over 6%. First National Financial is a company that operates in Canada’s mortgage origination and servicing sector.

Despite a challenging Q1 with pre-fair market value income down 16%, its strong fundamentals support its dividend payments. The company’s mortgage under administration (MUA) grew 7% year over year to reach significant scale, providing a stable foundation of recurring servicing revenue that underpins dividend sustainability.

Single-family funding increased 34% year over year, demonstrating market share gains in a competitive environment, while commercial originations rose 18%, driven by expertise in insured multi-unit residential properties.

First National benefits from defensive characteristics, including its focus on government-insured mortgages and strong relationships with institutional investors. Its business model generates predictable cash flows through mortgage servicing fees and net interest margins on securitized portfolios.

Management maintained the $2.50 annual dividend despite temporary margin compression, reflecting confidence in the underlying business strength.

With a robust commitment pipeline and structural advantages in the high-ratio insured mortgage market, First National offers income investors exposure to Canada’s essential housing finance infrastructure, supported by attractive dividend yields and recurring revenue streams.

Fool contributor Aditya Raghunath 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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