The Bank of Canada has reduced its benchmark interest rate by 275 basis points from a peak of 5% in June 2024 to 2.25%. In this lower-interest-rate environment, investors may want to focus on Canadian stocks that offer higher-yielding monthly dividends to generate stable, reliable passive income.
| COMPANY | RECENT PRICE | NUMBER OF SAHRES | INVESTMENT | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| SRU.UN | $25.51 | 1,999 | $50,994 | $0.1542 | $308.2 | Monthly |
| WCP | $11.60 | 4,396 | $50.994 | $0.0608 | $267.3 | Monthly |
| Total | $575.5 |
Additionally, holding these investments in a Tax-Free Savings Account (TFSA) allows investors to earn this income tax-free. For individuals who were 18 years of age or older in 2009 and have never invested through a TFSA, the cumulative contribution limit is now $102,000. By investing this amount equally across the following two dividend-paying stocks, investors could generate more than $575 in monthly income. Let’s take a closer look at these two stocks.
SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX:SRU.UN) stands out as an attractive monthly dividend stock, supported by its high occupancy rate, compelling yield, and solid long-term growth prospects. The REIT owns and operates approximately 197 strategically located properties, with nearly 90% of Canadians living within 10 kilometres of at least one SmartCentres location. Its tenant base is also well diversified and resilient, with about 95% of tenants having regional or national operations and roughly 60% providing essential services. Backed by this strong portfolio and tenant mix, SmartCentres reported an impressive 98.6% occupancy rate at the end of its third quarter.
On the growth front, the Toronto-based REIT continues to expand its asset base. It brought three new self-storage facilities into service this year, increasing the total to 14 locations. Management expects to place two additional facilities in Quebec into service next year, while two projects in British Columbia are scheduled to open in 2027. SmartCentres also maintains a robust development pipeline totalling 86.2 million square feet, including 0.8 million square feet currently under construction and 58.1 million square feet with zoning approvals. Given these growth initiatives, SmartCentres appears well-positioned to sustain its dividend payments. Currently, it offers a monthly distribution of $0.1542 per unit, translating into an attractive forward dividend yield of approximately 7.25%.
Whitecap Resources
Another monthly dividend stock I remain bullish on is Whitecap Resources (TSX:WCP), which operates oil and natural gas assets primarily in the Western Canadian Sedimentary Basin. In October, the company reported a strong third-quarter performance, with average production of 374,623 barrels of oil equivalent per day (boe/d), exceeding internal expectations. Production per share increased by 5.7% year over year, while revenue per share declined by 8.9% due to a 13.8% drop in average realized commodity prices.
Supported by solid operational execution and early synergies from the Vener merger completed in May, Whitecap generated funds flow of $897 million during the quarter. Funds flow per share rose 7.4% year over year to $0.73. After capital expenditures of $546 million, the company delivered free funds flow of $350 million. Whitecap’s balance sheet also remains strong, with a net debt-to-annualized funds flow ratio of one and liquidity of $1.6 billion at quarter-end.
Encouraged by its robust performance through the first three quarters, management has raised its 2025 average production guidance to 305,000 boe/d from the prior range of 295,000–300,000 boe/d. Looking ahead, the company plans to invest $2.0–$2.1 billion next year to enhance production capacity further and targets an average output of 370,000–375,000 boe/d, representing a meaningful increase from current levels. Given its strong growth outlook, healthy balance sheet, and disciplined capital allocation, Whitecap appears well-positioned to continue delivering attractive income to shareholders. The company currently pays a monthly dividend of $0.0608 per share, yielding approximately 6.29%.
