Given all the volatility in growth stocks these days, it feels like a great time to rotate into some of the steadier dividend plays. The monthly income boost and relative stability not only make one better off, but they may also be key to side-stepping more pain as AI causes not only massive winners to surface but also sizable losers.
In any case, here are a pair of income stocks that pay monthly and may be worthy of a spot in a “paycheck portfolio,” whether that’s in your Tax-Free Savings Account (TFSA) or somewhere else.
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Choice Properties REIT
Choice Properties REIT (TSX: CHP.UN) stands out as one of the pillars of stability for any monthly income portfolio. The real estate investment trust’s (REIT’s) cash flow stream is pretty much bulletproof, thanks in part to its grocery-anchored locations (Loblaw, which is soaring, is the big tenant) that have helped pave the way for an impressive occupancy rate of around 98%.
With a good mix of retail and industrial real estate, Choice Properties isn’t just a fantastic choice to get a good night’s sleep; it’s a terrific way to land decent growth over the long run. Funds from operations (FFOs) have grown at a steady single-digit pace in the past year. With a solid pipeline of residential projects, Choice is starting to stand out as a growthier REIT. Of course, Choice isn’t the only REIT that’s looked to residential as a place to diversify away from retail and the warehouse.
Either way, I’m a big fan of the mixed-use pivot that many retail REITs have made. And in the case of Choice, I think its move will pay dividends for years to come. Today, shares yield 4.84%. That’s not a huge yield, but with shares looking to break out to new highs, I’d consider watching the name closely if you want a perfect mix of yield, timeliness, and relative stability.
Northland Power
Northland Power (TSX: NPI) is a renewable energy firm that pays its dividends monthly. The stock has soared close to 20% so far this year, but, zooming out, the latest year-to-date rise is nothing more than a blip when you consider the painful multi-year descent between 2021 and the start of 2025. At its worst, shares lost around two-thirds of their value, and while the turnaround has been difficult, I think there’s reason for optimism, especially at today’s rock-bottom prices.
Today, the stock trades at 14.8 times forward price to earnings (P/E), which seems like a great bargain, especially considering renewable’s role in powering the AI data centre boom. Of course, higher interest rates have hurt the capital expenditure-intensive firm.
But with rates likely headed lower and some of its more ambitious (albeit previously delayed) projects ready to start paying cash, I think there’s every reason to give the fallen firm the benefit of the doubt, especially after its strong earnings report, which saw a sizeable increase in earnings. Management is guiding higher, and it certainly feels like a turning point has been reached. With AI tailwinds considered, I think NPI stock stands out as one of the better renewable bets on the market. The 3.3% yield is just the sugar on top!
