Canada is fortunate to have several stocks that pay dividend income monthly. These stocks can help provide an alternative income source to employment income. Some of these dividend stocks are better than others, so you have to be a bit choosy.
Real estate investment trusts (REITs), industrials, royalty stocks, and sometimes energy stocks can be a good place to look. Here are three dividend stocks you can rely on for monthly dividend income, and even a little bit of growth.
A solid stock for growth and monthly income
Exchange Income Corp (TSX:EIF) has been a great total-return story in the past few years. Its stock is up 120% in the past five years. However, if you add in dividends reinvested, your total return would be closer to 185%.
Exchange has delivered a solid mix of acquisition and organic growth over the years. It just made a major acquisition by adding Canadian North airline to its essential airline segment.
The acquisition solidifies it as the ultimate air transport provider for Canada’s north. The company has plenty of other organic growth optionality in its air leasing, environmental matting, and defence/air surveillance technology businesses.
Exchange yields 3.35% today. A $20,000 investment in Exchange would earn $55.66 monthly. It has a record of growing its dividend, so your monthly income will likely rise in the years ahead.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Exchange Income Corp. | 82.40 | 242 | $0.23 | $55.66 | Monthly |
A higher-yielding stock for dividend income
Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) is an interesting stock for value and monthly income. It owns and manages over 73 million square feet of multi-tenanted industrial real estate in Canada, the U.S., and Europe.
This is a well-managed REIT that is diversified by country, tenant, and property use. It has around 95% occupancy today. However, its average rental rate is around 12% below market, suggesting there is attractive organic growth ahead. The REIT is cheap and trades well below its private-market value.
Dream’s payout ratio has improved considerably in the past five years. With a declining payout ratio, this stock could be positioned to increase its dividend soon. Dream yields 5.8% today. A $20,000 investment would earn $96.48 per month of investment income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Dream Industrial REIT | $12.08 | 1,655 | $0.0583 | $96.48 | Monthly |
A monthly dividend payer with long-term tailwinds
Chartwell Retirement Residences (TSX:CSH.UN) is another quality dividend stock for monthly income. It has enjoyed an incredible recovery after COVID-19. Its stock is up 75% since late 2020.
Chartwell is Canada’s largest retirement residence operator with over 25,000 units across Canada. This was a tough business during and after the pandemic. However, since late 2023, occupancy has recovered from 86% to near 95% today. Any further rise in occupancy goes straight to the bottom line.
The population of seniors over the age of 80 is expected to rapidly rise in the coming 20 years. Yet new developments are hardly meeting projected demand. That is favourable in the long term for top operators like Chartwell.
Chartwell stock pays a 3% yield now. A $20,000 investment would earn $50.44 monthly. Given strong results recently, Chartwell is likely to soon resume its distribution growth record it had before the pandemic.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Chartwell Retirement Residences | $20.22 | 989 | $0.051 | $50.44 | Monthly |
The bottom line
If you pick wisely, you might be able to find stocks that pay monthly dividends, hopefully grow your dividends, and deliver good capital returns. These three stocks give you diverse exposure to a mix of industries and still earn a good monthly income return.
