Last month, the Bank of Canada slashed its key interest rate by 25 basis points to 2.25%. In this low-interest-rate environment, income-focused investors may want to explore investing in reliable monthly dividend stocks to secure a healthy, steady stream of passive income. With that in mind, here are three top Canadian stocks offering attractive monthly dividend yields.
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SmartCentres Real Estate Investment Trust
Real estate investment trusts (REITs) are required to distribute about 90% of their taxable income to shareholders to retain their tax-advantaged status, making them an attractive option for income-focused investors. Therefore, my first pick is SmartCentres Real Estate Investment Trust (TSX: SRU.UN), which owns and operates 197 strategically located properties across Canada, with 90% of Canadians living within a 10-kilometre radius of one of its locations. Additionally, it boasts a solid tenant base, comprising 95% of tenants with regional or national presence, 60% of which offer essential services.
Backed by its strategically located portfolio and strong tenant base, SmartCentres maintains a robust occupancy rate of 98.6%, as reported in its most recent second-quarter results. Its solid lease renewal rates and growing rental income further enhance financial stability. The REIT is also expanding its portfolio, with 58.9 million square feet of approved development projects, including about 0.8 million square feet currently under construction. These initiatives position SmartCentres well to sustain its healthy dividend payouts.
Additionally, the REIT offers an attractive forward dividend yield of 6.9% and trades at a reasonable next 12-month (NTM) price-to-earnings multiple of 18, making it a compelling investment choice for income-focused investors.
Whitecap Resources
Another attractive monthly dividend payer for income-focused investors is Whitecap Resources (TSX: WCP), which currently offers a solid forward dividend yield of 6.7%. The oil and natural gas producer recently delivered strong third-quarter results, with production per share rising 4.7%. Strengthened production capabilities and ongoing efficiency improvements drove this growth. However, the company experienced softer energy prices during the quarter, with the average realized price falling by 6.5%.
Despite softer prices, Whitecap generated fund flows of $897 million, with a fund flow per share of $0.73, representing a 7.4% year-over-year increase. The company maintained a healthy balance sheet, boasting a net debt-to-annualized funds flow ratio of 1 and liquidity of $1.6 billion. Reflecting its strong performance, management has raised its 2025 average production guidance to 305,000 barrels of oil equivalent per day (boe/d), up from the previous range of 295,000–300,000 boe/d.
Looking ahead, Whitecap plans to further strengthen its production base with capital investments of $2 billion to $2.1 billion over the next phase. Combined with ongoing operational and corporate synergies, these initiatives should support continued financial growth. Given its robust fundamentals, disciplined capital management, and strong cash flows, Whitecap appears well-positioned to sustain its attractive monthly dividends.
Pizza Pizza Royalty
My final pick is Pizza Pizza Royalty (TSX: PZA), which operates a network of 694 Pizza Pizza and 100 Pizza 73 restaurants through a franchise model. This highly franchised structure helps insulate the company’s financials from rising commodity costs and wage inflation, allowing it to maintain stable and predictable cash flows.
In its most recent third-quarter results, the company reported a 0.1% increase in same-store sales, driven by a higher average cheque size. However, lower customer traffic offset some of the increases. Management attributed the softer foot traffic to challenging macroeconomic conditions and intensifying competition in the quick-service restaurant sector.
Meanwhile, PZA’s management is investing in digital ordering, enhancing service speed, and introducing innovative menu offerings to attract more customers. The company is also expanding its presence and expects to increase its traditional restaurant count by 2–3% this year, while continuing its ongoing renovation program. Given these growth initiatives and its asset-light, franchise-based business model, I believe PZA is well-positioned to sustain its dividend payments at a healthy rate.
