Having a secondary income is beneficial, as it provides financial security, helps you achieve your financial goals more quickly, and offers protection during challenging circumstances. In this low interest rate environment, investors can look to invest in quality monthly-paying stocks that offer higher yields to earn a stable and reliable secondary or passive income. Against this backdrop, let’s look at three top monthly-paying dividend stocks that are ideal for income-seeking investors.
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SmartCentres Real Estate Investment Trust
REITs (real estate investment trusts) are an ideal means to earn passive income, as these companies must dispense 90% of their taxable income to their shareholders. Therefore, I have chosen SmartCentres Real Estate Investment Trust (TSX: SRU.UN), which owns and operates 196 strategically located properties across Canada, as my first pick. It also has a solid tenant base, with 95% of its tenants having a national or regional presence, while 60% of its tenants offer essential services. Additionally, the company earns more than 45% of its rental income from just 10 tenants.
Therefore, the company enjoys a healthy occupancy rate, thereby generating solid cash flows that enable it to pay dividends at a higher rate. Its monthly dividend payout of $0.1542 per share translates into an attractive forward dividend yield of 7.27% as of the June 24th closing price.
Moreover, SmartCentres has the permission to develop 59.1 million square feet of mixed-use properties, with one million square feet of properties under construction. Considering its expanding asset portfolio, solid customer base, healthy occupancy rates, and growing operating income on these properties, I expect SmartCentres to continue rewarding its shareholders with a healthy dividend yield.
Sienna Senior Living
My second pick is Sienna Senior Living (TSX: SIA), which owns and operates seniors’ residences across Ontario, Saskatchewan, Alberta, and British Columbia. The company has been expanding its assets through organic growth and strategic acquisitions. Since 2013, the company has acquired around $2 billion of assets. Meanwhile, Statistics Canada predicts that the population of people aged 85 and above, which was 0.86 million in 2021, could reach 1.65 million by 2036. Therefore, the demand for seniors’ services could rise in the coming years, thereby expanding the addressable market for Sienna.
Amid rising demand, Sienna continues to expand its asset base by acquiring Hazeldean Gardens Retirement Residence, a 172-suite retirement residence, for $85.25 million last week. With this acquisition, the company has completed approximately $340 million worth of acquisitions this year and expects to remain active in the market to expand its business further. Its financial position also appears healthy, with liquidity of $445 million at the end of the first quarter of 2025. Considering all these factors, I believe Sienna, which currently offers a healthy dividend yield of 5.05%, can continue to pay its dividends at a healthy rate.
Pizza Pizza Royalty
Pizza Pizza Royalty (TSX: PZA), which operates 697 Pizza Pizza and 100 Pizza 73 brand restaurants, is my final pick. Adopting an asset-light business model, the company operates most of its restaurants through franchisees. It collects royalties from its franchisees based on their sales, thereby shielding its financials from the effects of rising commodity prices and wage inflation. Meanwhile, in the company’s recently reported first-quarter earnings, it posted positive same-store sales growth, driven by increases in both traffic and average check size. The company’s management attributes its positive same-store sales growth to new menu launches, value offerings, and creative brand messaging.
Moreover, PZA expects to increase its traditional restaurant count by 2-3% this year while continuing with its restaurant renovation program. These growth initiatives could drive its royalty income, thereby allowing it to pay dividends at a healthier rate. PZA currently pays a monthly dividend payout of $0.0775 per share, with its forward dividend yield at 6.22%.
