Last month, the Canadian Central Bank slashed its benchmark interest rate by 25 basis points to 2.25%. In this low-interest-rate environment, investors can boost their passive income by investing in high-quality dividend stocks. Along with these healthy regular payouts, investors can also benefit from stock price growth. Moreover, if you make these investments through your TFSA (Tax-Free Savings Account), you can earn tax-free returns on the allowable contribution limit.
Meanwhile, to earn over $300 in tax-free monthly income, investors could consider investing $56,000 in monthly-paying dividend stocks with yields above 6.5%. With a cumulative TFSA contribution room of $102,000 for Canadians who were 18 or older in 2009, they can use their TFSA to make such investments and generate a tax-free monthly income exceeding $300. On that note, let’s examine two top Canadian stocks that offer monthly dividends with yields exceeding 6.5%.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| SRU | $26.5 | 1,056 | $27,984 | $0.1542 | $162.8 | Monthly |
| WCP | $10.43 | 2,684 | $27,994 | $0.0608 | $163.2 | Monthly |
| Total | $326 |
Whitecap Resources
Whitecap Resources (TSX:WCP), an oil and natural gas producer, posted an impressive third-quarter performance last month, exceeding its internal guidance. The company’s total average daily production stood at 374,623 boe/d (barrels of oil equivalent per day), representing a 116% increase from the previous year’s quarter. However, its production per share grew 4.7% amid the strengthening of production capabilities and sustained efficiency gains. It also witnessed soft energy prices during the quarter, with the average realized price falling by 6.5%.
Despite weaker realized prices, the Calgary-based energy company generated a funds flow of $897 million, or $0.73 per share, marking a 7.4% year-over-year increase. Its balance sheet remains strong, with a net debt-to-annualized funds flow ratio of one and liquidity of $1.6 billion. Following a solid third-quarter performance, management raised its 2025 average production guidance to 305,000 boe/d, up from the previous range of 295,000–300,000 boe/d.
Looking ahead, WCP plans to invest between $2 billion and $2.1 billion next year to further strengthen its production capacity. Alongside this production growth, management aims to realize additional operating and corporate synergies to boost overall financial performance. Given these factors, I believe WCP is well-positioned to sustain its dividend payouts in the coming years. Meanwhile, its current monthly dividend payout of $0.0608 per share translates to a forward yield of 7%.
SmartCentres Real Estate Investment Trust
Another high-yielding monthly-paying dividend stock that I am betting on is SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which owns and operates 197 properties across Canada. It boasts a well-established real estate portfolio, with approximately 90% of the country’s population having at least one store within a 10-kilometre radius. Its tenant base remains strong, comprising nationally and regionally recognized brands. Given its strategically located properties and robust tenant mix, the Toronto-based REIT enjoys a healthy occupancy rate, which stood at 98.6% at the end of the second quarter.
Moreover, SmartCentres is actively expanding its portfolio, with 58.9 million square feet of approved development projects, including approximately 0.8 million square feet currently under construction. Along with these expansion initiatives, a higher lease renewal rate and consistent rental growth could bolster the company’s financial performance in the coming years. Moreover, its valuation looks appealing, trading at a price-to-book ratio of 0.9. Considering these factors, I believe SmartCentres, which currently offers an attractive forward dividend yield of 6.98%, is well-positioned to continue delivering healthy returns to its shareholders.
