Monthly income from investments is a great way to supplement both regular income and retirement income. But the trick is knowing which investments to buy for reliable, and hopefully, growing income. Bonds are great, but yields are so low right now. This is where high-yielding Canadian stocks can play a crucial role in your monthly income-generating power.
Here are two Canadian dividend stocks to buy now.
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Mullen Group
Mullen Group Ltd. (TSX: MTL) is an undervalued Canadian dividend stock that’s currently yielding a generous 5.9%. The stock has paid out a monthly dividend for more than 20 years. And while this dividend has not been as stable as one would like, the company has reinvented itself throughout this time.
This means that it is no longer fully dependent on Canada’s oil and gas industry activity for its revenue. It also means that it’s a diversified company that has become one of Canada’s largest logistics companies. In a nutshell, it offers transportation, warehousing, and distribution services throughout North America.
Mullen’s most recent quarter was one that broke records – record revenue of $562 million increased 5.6%, and its cash from operations increased 55% to $102 million. The results were driven by acquisitions and these acquisitions are setting the company up to be bigger and better in the years ahead.
In recent years, Mullen has embarked on an acquisition program in order to grow and diversify its business away from the cyclical oil and gas services business. This has been successful, and in the last five years, Mullen’s revenue has grown 71% to $2 billion in 2024.
Northwest Healthcare Properties
As a leading healthcare property owner, Northwest Healthcare Properties REIT (TSX:NWH.UN) is well set up to provide dividend investors with a reliable monthly income stream. Northwest’s properties include hospitals, outpatient and ambulatory care centres, medical office buildings, specialty clinics, and more.
The stock is currently yielding 6.5%. This yield is backed by a predictable cash flow profile, as well as stable tenancy and a defensive industry. The average weighted average lease expiry is currently 13.4 years; its occupancy rate is at 96.9%, and almost 85% of the leases are subject to rent indexation.
In the REIT’s latest quarter, its adjusted funds from operations increased 16% to $0.11 per share. This puts its payout ratio at 85%, compared to 99% in the same period last year. Also, its debt balance is declining rapidly.
This is all setting Northwest up to fully take advantage of the positive fundamentals in the healthcare property business. It’s a steadily growing industry, with the aging population and medical advances fuelling this growth. The health and wellness space is one that’s defensive, predictable, and well-suited for investors who are looking for reliable income.
The bottom line
Mullen Group and Northwest Healthcare REIT actually have very little in common. But what they do have in common is their high yields and businesses that have found some momentum. This is what makes them attractive Canadian stocks to buy now. You should consider these stocks for your income needs.
