The Canadian stock market has no shortage of options to choose from when you want to buy dividend stocks. Things seem to be heating up as the S&P/TSX Composite Index continues its bull market run. The Canadian benchmark is up by 26.63% year to date, indicating signs of strength in the overall economy. While the index shows a broad upward trend, not every stock has seen its share prices soar.
Before we see the whole market reach new all-time highs, it might be a good idea to lock in juicy dividend yields into your self-directed investment portfolio. Although the Canadian energy sector might have a reputation for being volatile, there are stocks that can be excellent holdings for monthly dividend income.
Today, I will discuss a monthly dividend stock that might warrant a place in your self-directed passive-income-focused portfolio.
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Whitecap Resources
Whitecap Resources (TSX:WCP) is a $14.24 billion market-cap Canadian energy company that engages in the acquisition, development, and production of crude oil and natural gas. While most energy stocks pay dividends on a quarterly schedule, Whitecap Resources distributes payments to investors each month.
The energy company is one of the few monthly dividend stocks that boasts a growing payout. The company has recently grown through strategic acquisitions, garnering more attention from investors for the kind of returns it can offer. The company’s acquisition of Veren, which it completed in May 2025, has been a lucrative decision. The merger has changed the game for Whitecap Resources and its investors.
The company’s third-quarter results for the fiscal year saw its quarterly revenue shoot by over 86%, and its funds flow surged by 119% in the same period. The company’s management has efficiently integrated the two businesses, and it is confident in its future. The management increased its forecasted cost synergies from an estimated $210 million at the start to a massive $300 million per year.
Monthly dividends galore
One of the primary reasons I am discussing this stock is its monthly distributions. Most TSX dividend stocks pay on a quarterly schedule. It means you must wait for three months to receive a payout. Whitecap Resources provides monthly dividends. The monthly frequency makes it a popular holding for those seeking regular monthly returns, especially retirees. Investors who want to compound returns by reinvesting dividends also appreciate that the stock cuts checks each month.
As of this writing, Whitecap Resources stock trades for $11.73 per share, and it pays investors $0.0608 per month, translating to a juicy 6.22% annualized dividend yield. The yield was around 7% until recently, but due to an 11% uptick in share prices, it saw its yield slightly deflated. Investing in its shares at current levels can mean locking in the high-yielding dividends before further deflation.
Foolish takeaway
High yields typically come with high risks, but Whitecap Resources is a well-capitalized business with a solid balance sheet. The company’s financials can help it withstand some of the worst market conditions without compromising its monthly dividends.
The company’s management also augments its safe dividends with hedging to make it an even more attractive investment to consider. It can be a good investment to consider. Here’s how buying shares of this monthly dividend stock can provide $150 per month:
| Ticker | Recent Price | Number of Shares | Dividends per Month per Share | Total Monthly Dividend Payout |
| WCP | $11.73 | 2500 | $0.0608 | $152 |
