The TSX today is holding firm at record levels. Despite the global economic noise and uncertainties, investors seem to be unshaken. Yet, I still think we’re all looking for some reassurance. Buying dividend stocks that pay out monthly is a great way to gain this reassurance. These monthly cash payments go a long way in improving your financial health and feelings of security.
Please read on as I discuss Tourmaline Oil (TSX:TOU), an energy stock that I think you should consider for your passive-income investing needs, as it provides a healthy monthly income stream. The TSX Index can be volatile. This dividend stock is a reliable piece of the pie.
Canada’s premier natural gas dividend stock
Tourmaline is a senior oil and gas company with a production profile that’s almost 80% weighted toward natural gas. The company’s operations are focused on three lucrative plays in the Western Canadian Sedimentary Basin — the Alberta Deep Basin, North East British Columbia Montney, and the Peace River Triassic Oil resource.
These prolific areas have catapulted Tourmaline into one of Canada’s largest, lowest cost, most efficient and reliable natural gas producers. The proof is well on display in Tourmaline’s financial results. In the five years ended December 31, 2024, Tourmaline grew its revenue by 150% to $5.4 billion. The company also grew its operating cash flow by 143% to $2.7 billion.
As you can see from the above graph, Tourmaline’s stock price has reflected this rosy reality. In fact, it has risen 200% in the last five years. And this doesn’t even include the returns that have come from Tourmaline’s monthly cash dividend payments, which are significant. For comparison purposes, the TSX Index has risen 86% over the last five years. So, with Tourmaline stock, investors have gotten superior capital appreciation — plus a very generous dividend.
Tourmaline: Dividends galore
In the last year, Tourmaline paid out $2 in regular dividends. It also paid out an additional $1.30 in special dividends. All told, this equates to $3.30 in dividends in 2025, for a total dividend yield of 5.5% at today’s stock price.
But the real story here is that 2025 was not just an anomaly. In fact, Tourmaline has been paying out very generous monthly dividends for many years now. In 2024, Tourmaline stock paid out $3.32 in dividends; in 2023, it paid out $6.55 in dividends; and in 2022, Tourmaline stock paid out $7.90 in dividends. These dividend payments included a regular and special dividend. Tourmaline has committed itself to paying out all of its free cash flow in dividends.
This is passive-income investing at its best.
The bottom line
Tourmaline’s stock price has reflected the company’s excellent position in the natural gas industry as well as its positive outlook. Furthermore, Tourmaline makes passive income investing look easy, with its combination of regular and special dividends that are paid out monthly.
So, no matter where the TSX Index is trading today, Tourmaline keeps benefitting from the positive fundamentals of the natural gas industry. As I expect these fundamentals to improve in the coming year and years, I expect that Tourmaline will continue to be a solid choice for passive-income investing.
