When you’re investing for income, one thing that truly matters is predictability. That’s why monthly dividend stocks are such a hit with retirees and long-term Tax-Free Savings Account (TFSA) holders alike. They turn your portfolio into a cash-generating machine, and when that income is coming in at around an 8% yield, it’s hard to ignore. Unlike quarterly payers, a monthly payout gives you cash flow you can plan around. You can use that extra cash for reinvesting more often, covering recurring expenses, or enjoying peace of mind.
In this article, I’ll introduce one standout stock that pays monthly and currently yields 8.1% annually, and tell you what makes it an amazing choice for income-seeking Canadians.
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A top monthly dividend stock to buy
Whitecap Resources (TSX:WCP) is the top monthly stock that fits everything income investors usually look for. Headquartered in Calgary, Whitecap is an oil-weighted energy producer with operations across Alberta and Saskatchewan.
WCP stock is currently trading at $9.07 per share and has a market cap of $11.2 billion. While its shares have dropped nearly 10% over the last year, they’ve gained over 10% in the past two months. In addition to other macro factors, the recent rebound in this monthly dividend stock has mainly been driven by stronger oil prices and better-than-expected output from its newest wells.
The company’s production in the first quarter averaged 179,051 barrels of oil equivalent per day (boe/d), which was over 6,000 boe/d above its internal forecasts. The beat was mainly driven by strong results across its Montney and Duvernay assets as well as higher-than-expected base production across the board. Clearly, Whitecap’s push to drill more efficiently using multi-well pads and infrastructure upgrades seems to be paying off.
Financials are moving in the right direction
In the first quarter of 2025, Whitecap’s total revenue climbed by 8.5% YoY (year-over-year) to $942.2 million. More importantly, the company’s net income came in at $162.6 million, almost triple what it was a year ago. Similarly, its adjusted earnings also jumped from $0.10 to $0.27 per share.
Meanwhile, its free funds flow for the quarter hit $48 million after significant capital investments of nearly $400 million. Also, Whitecap’s net debt dropped below $1 billion, bringing its net debt-to-funds flow ratio to just 0.6 times. That could be seen as a clear sign of a healthy balance sheet, especially for a dividend-paying energy stock.
Growth moves add to its appeal
Interestingly, Whitecap recently merged with Veren, a move that will make it the largest landholder in Alberta’s Montney and Duvernay plays. This combination created a much larger light oil producer with even more drilling opportunities and stronger cash flow potential. After this deal, Whitecap’s management expects that the combined company will maintain its $0.73 per share annual base dividend.
These positive fundamentals make Whitecap Resources not only a reliable choice for income investors, but also one that is expected to deliver long-term growth and scale. Given that, it’s definitely a top monthly dividend stock worth considering right now.
