Investing in high-yield dividend stocks that offer monthly payouts is an effective way to generate stable passive income in the current low-interest-rate environment. Against this backdrop, let’s look at three Canadian stocks that offer monthly dividends at higher yields.
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SmartCentres Real Estate Investment Trust
With REITs (real estate investment trusts) mandated to pay 90% of their taxable income to shareholders, these companies would be ideal for income-seeking investors. Therefore, I have chosen SmartCentres Real Estate Investment Trust (TSX:SRU.UN) as my first pick. With its 197 strategically located properties, around 90% of the country’s population will have at least one of the REIT’s shopping centres within 10 kilometres. Additionally, the REIT boasts a strong tenant base, with 95% having a national or regional presence and 60% providing essential services. Supported by these favourable factors, the company maintains a strong occupancy rate, which reached 98.6% by the end of the second quarter of 2025.
Furthermore, SmartCentres is steadily expanding its portfolio, holding development approvals for about 58.1 million square feet, with roughly 0.8 million square feet of projects currently underway. Meanwhile, the sluggish supply due to elevated construction expenses and higher interest rates has increased the demand for retail space, thereby driving rental growth. Amid these favourable factors, I expect SmartCentres to continue paying dividends at a healthier rate. Meanwhile, it currently distributes a monthly payout of $0.1542 per share, equating to an attractive yield of 7.1%.
Whitecap Resources
Another monthly dividend stock I favour is Whitecap Resources (TSX:WCP), a company that is engaged in oil and natural gas production across Western Canada. It has strengthened its production capabilities through its strategic combination with Veren, thereby becoming Canada’s seventh-largest oil and natural gas producer. The strategic combination has also bolstered its balance sheet, enhancing liquidity and lowering leverage.
Meanwhile, initial synergies from integrating Veren’s assets and workforce have contributed towards WCP’s cost consolidation and improved credit profile. Additionally, the company’s management expects to leverage shared knowledge and expertise across its combined portfolio to achieve further gains in capital efficiency and operating cost savings over the next 6 to 12 months. Along with these initiatives, the company’s planned capital investments of $1.2 billion in the second half of this year could boost its production, thereby supporting its financial growth. Amid these healthy growth prospects, I expect WCP, which currently offers an impressive forward dividend yield of 6.9%, to continue paying dividends at attractive yields.
Pizza Pizza Royalty
My final pick would be Pizza Pizza Royalty (TSX:PZA), which has adopted a highly franchised business model, operating all of its Pizza Pizza and Pizza 73 brand restaurants through its franchisees. It collects royalties from its franchisees based on their sales, therefore making its financials less susceptible to rising commodity prices and labour wages. Although the company intends to pay all the available cash to its shareholders, it maintains reasonable reserves to stabilize its monthly payouts against the seasonal fluctuations inherent in the restaurant industry. Meanwhile, it currently offers a healthy forward dividend yield of 6.1%.
Moreover, the company continues to expand its footprint and expects to raise its traditional restaurant count by 2–3% this year. Along with these expansions, its menu innovations, marketing initiatives, and renovations of existing restaurants could drive its same restaurant sales. Considering these healthy growth prospects and stable cash flows from its asset-light business model, I expect PZA to continue rewarding its shareholders with healthy yields.
