Last month, the Bank of Canada reduced its key interest rate by 25 basis points to 2.25%, responding to concerns over a weakening economic outlook driven in part by the United States’ trade policies. In this lower-rate environment, investors may consider high-quality monthly dividend stocks to generate steady, reliable passive income. With that in mind, here are my top three picks.
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SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) delivered a solid third-quarter performance earlier this month, leasing 68,000 square feet of previously vacant space. Year to date, it has leased approximately 394,000 square feet, with its occupancy rate remaining at an impressive 98.6%. Supported by substantial customer traffic and a high-quality tenant base, same-property NOI (net operating income) rose 4.6% year over year. Reflecting these healthy operating metrics, adjusted FFO (funds from operations) increased 5.7% to $0.57.
The Toronto-based REIT (real estate investment trust) continues to expand its asset base, opening three new self-storage facilities this year and bringing its total to 14. Additional projects under construction in Montreal and Laval are scheduled to open next year, while the management expects the developments in Burnaby and Victoria to come online in 2027. Beyond these, SmartCentres has a robust development pipeline totalling 86.2 million square feet across residential, retail, senior housing, self-storage, and office categories.
With strong occupancy, steady lease-up activity, and a diversified development pipeline, the REIT is well-positioned to improve its financial performance and sustain its attractive monthly dividend. Currently offering a compelling yield of 7.1%, SmartCentres stands out as an excellent income-focused investment.
Whitecap Resources
Second on my list is Whitecap Resources (TSX: WCP), which currently offers an attractive forward dividend yield of 6.28%. The oil and natural gas producer delivered an impressive third-quarter performance last month, exceeding its internal production targets. It reported average production of 374,623 boe/d, with output per share up 4.7% year over year, thanks to strengthened production capabilities and continued efficiency gains.
Although softer energy prices pushed the company’s average realized price down by 6.5%, Whitecap offset some of this impact by reducing average production costs by 8% through streamlined workflows, optimized practices, and improved infrastructure utilization. Supported by this robust operational performance and early synergy benefits, the company generated $897 million in fund flow, or $0.73 per share, marking a 7.4% year-over-year increase.
Whitecap also maintains a solid financial position with a net debt-to-annualized funds flow ratio of 1 and liquidity of $1.6 billion. Following its strong quarter, the company has increased its 2025 production guidance to 305,000 boe/d, up from the previously guided range of 295,000–300,000 boe/d. Additionally, Whitecap plans to invest $2–$2.1 billion next year to expand its production capabilities further. Combined with improved operational execution, disciplined capital allocation, and ongoing operating and corporate synergies, these initiatives could strengthen both its revenue and earnings in the coming years. Given these positive developments, I believe Whitecap’s future dividend payouts are sustainable.
Pizza Pizza Royalty
My final pick is Pizza Pizza Royalty (TSX: PZA), which currently offers an attractive dividend yield of 6.22%. The company operates 694 Pizza Pizza and 100 Pizza 73 restaurants through its franchisees, earning royalties based on sales. This asset-light, royalty-driven model shields its financials from commodity price volatility and rising labour costs, helping it generate stable, predictable cash flows.
In its recently reported third quarter, PZA delivered a 0.1% increase in same-store sales, driven by higher average check sizes, although softer traffic partly offset the gains. Management attributed the lower footfall to challenging macroeconomic conditions and intensifying competition in the quick-service restaurant space.
To counter these headwinds, the company is investing in digital ordering, enhancing service speed, and introducing new menu innovations to attract more customers. It is also expanding its restaurant network and expects its traditional store count to grow by 2–3% this year. Meanwhile, its ongoing restaurant renovation program could further support traffic and sales growth.
Given its strategic growth initiatives and resilient, asset-light business model, I believe PZA is well-positioned to continue delivering healthy dividends to shareholders.
