Monthly-paying dividend stocks are an excellent way to earn a stable and reliable passive income in this low-interest-rate environment. Meanwhile, investors should exercise caution when selecting stocks, as dividend payouts are not guaranteed and depend on various factors, including the macroeconomic environment and company performance. Against this backdrop, let’s examine three stocks that pay monthly dividends at a healthier rate.
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Northwest Healthcare Properties REIT
Northwest Healthcare Properties REIT (TSX:NWH.UN) owns and operates 169 healthcare properties across Canada, with a weighted average lease expiry of 13.6 years for these assets as of the end of the first quarter of 2025. The company leased 280,000 square feet of properties during the quarter, including 33,046 square feet of new leases, 165,288 square feet of renewals, and 82,449 square feet of early lease extensions. Additionally, its same-property net operating income during the quarter rose 4.5% to $73.8 million.
Despite these solid operating performances, Northwest Healthcare’s adjusted funds from operations (AFFO) decreased 12.1% to $24.35 million, primarily due to the disposition of its non-core assets aimed at strengthening its financial position. The company sold three income-producing properties and one development property in North America, as well as unlisted securities in Australia, for $51 million during the quarter. The real estate investment trust (REIT) utilized the net proceeds to repay its debt. Also, it held three income-producing properties and two development properties for sale at the end of the first quarter, which could generate $58.8 million.
Moreover, NorthWest Healthcare sold its shares in Assura for $209.3 million in the second quarter, utilizing the net proceeds to repay debt and for corporate facilities. Considering its defensive healthy portfolio, improving operating performances, and the strengthening of its financial position, I expect NorthWest Healthcare, which currently offers a forward dividend yield of 7.44%, to continue paying dividends at a healthy rate.
Pizza Pizza Royalty
Another under-$25 monthly-paying dividend stock you should buy right now is Pizza Pizza Royalty (TSX: PZA), which currently offers a forward dividend yield of 5.81%. It has adopted a highly franchised business model, operating most of its 797 restaurants (697 Pizza Pizza restaurants and 100 Pizza 73 restaurants) through franchisees. It collects royalties from franchisees based on their sales. Therefore, its cash flows are less susceptible to fluctuations in commodity prices and rising labour costs. Although the company intends to return all available cash to its shareholders, it maintains reasonable reserves to ensure equal dividend payouts, despite the seasonal variations inherent in the restaurant industry.
Moreover, PZA continues to expand its restaurant network and expects to increase its traditional restaurant count by 2-3% this year. Additionally, its new menu launches, value offerings, marketing initiatives, and restaurant renovation program could support its same-store sales growth. Considering all these factors, I believe PZA will continue to pay dividends at a healthier rate.
Sienna Senior Living
Sienna Senior Living (TSX: SIA), which offers a full range of senior living options, is my final pick. It has expanded its footprint through both organic growth and acquisitions. Meanwhile, the demand for the company’s services will continue to rise as Statistics Canada predicts that the population of people aged 85 and above in Canada will increase from 0.86 million in 2021 to 1.65 million by 2036.
Meanwhile, SIA is continuing with its acquisitions and has recently acquired Hazeldean Gardens Retirement Residence, a 172-suite retirement residence, for $85.25 million, as well as Credit River Retirement Residence, a 133-suite retirement residence. With these transactions, the company has acquired around $400 million worth of assets this year. Meanwhile, given its healthy liquidity of 445 million at the end of the first quarter, the company is well-equipped to continue with its growth initiatives. Given the favourable environment and its growth initiatives, I expect SIA, which currently offers a forward dividend yield of 5.19%, to continue paying dividends at a healthier rate.
