Generating passive income can enhance financial stability and help preserve your purchasing power by providing a steady stream of cash flow, even amid rising prices. It can also enable investors to reach their long-term financial goals more quickly. In a low-interest-rate environment, investing in high-yield dividend stocks that offer monthly payouts can be an effective strategy.
With that in mind, here are my two top picks that combine attractive yields with monthly distributions to boost your passive income.
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SmarCentres Real Estate Investment Trust
Real estate investment trusts (REITs) must distribute a significant share of their taxable income to unitholders, which makes them particularly appealing to income-oriented investors seeking steady cash flow. With that in mind, my first pick is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). The REIT owns and manages 155 properties totalling 35.6 million square feet of gross leasable area. These assets are strategically located, with approximately 90% of Canadians living within 10 kilometres of at least one of its properties. It also benefits from a strong tenant mix, with 95% of tenants having regional or national operations and about 60% classified as essential-service providers. As a result, SmartCentres maintained a robust 98.6% occupancy rate at the end of last year.
In its recently reported fourth quarter, SmartCentres delivered modest growth, with net rental and other income rising 1.4%. Lease-up activity and higher net recoveries more than offset lower residential sales stemming from fewer townhome closings, supporting net rental income. However, adjusted funds from operations (FFO) declined 3.6% year over year to $0.54 per unit, as higher net interest and general and administrative expenses more than offset gains in net operating income (NOI).
Looking ahead, SmartCentres has an active development pipeline spanning 86.2 million square feet across self-storage, residential, office, and industrial projects, including approximately 0.8 million square feet currently under construction. Backed by its resilient, retail-focused portfolio and ongoing expansion initiatives, the REIT appears well-positioned to sustain stable financial performance and distributions. It currently pays a monthly distribution of $0.1542 per unit, translating into an attractive forward yield of approximately 6.7%.
Whitecap Resources
Another compelling option for income-focused investors is Whitecap Resources (TSX:WCP), which operates oil and natural gas assets across Western Canada. The Calgary-based producer enhanced its scale and production profile through its May 2025 merger with Veren. In addition to expanding its asset base, the transaction strengthened Whitecap’s balance sheet and financial flexibility. The company currently has liquidity of approximately $1.6 billion and maintains a conservative net debt-to-annualized funds flow ratio of about one.
Whitecap continues to invest in growth, with a planned capital program of $2–$2.1 billion this year, following roughly $2 billion invested last year. These investments could further enhance its production capabilities. Management forecasts average production of 370,000 to 375,000 barrels of oil equivalent per day (boe/d) this year, representing an increase of more than 22% compared to the previous year.
The company has also realized merger-related synergies ahead of schedule, driven by streamlined workflows, optimized production practices, and improved infrastructure utilization. Procurement savings and rig-line optimization have further enhanced capital efficiency. As integration progresses, management now expects approximately $300 million in synergy benefits this year across capital, operating, and corporate segments — about 40% higher than its initial estimate.
Given its strengthened operational profile, improved efficiency, and solid growth outlook, Whitecap appears well-positioned to sustain attractive shareholder returns. Its monthly dividend payout of $0.0608 per share translates into a forward yield of 5.6%.
