2 TSX Stocks That Turn Dividends Into Reliable Monthly Paycheques

Given their solid underlying businesses, healthy growth prospects and high yields, these two TSX stocks can boost your passive income.

Key Points
  • Investing in high-quality monthly dividend stocks like SmartCentres REIT and Whitecap Resources can effectively generate passive income, offering stability and a hedge against inflation in today's volatile environment.
  • SmartCentres REIT offers a 6.51% yield, supported by stable occupancy and a robust development pipeline. Meanwhile, Whitecap Resources, with a 5.16% yield, benefits from strong production capabilities and favorable commodity prices.

In today’s uncertain environment — characterized by rising inflation, geopolitical tensions, and a volatile job market amid the rapid adoption of artificial intelligence — building passive income has become increasingly important. Beyond enhancing financial stability, it also serves as an effective hedge against inflation. Additionally, reinvesting regular payouts can help investors compound their returns over the long term.

One of the simplest and most cost-effective ways to generate passive income is to invest in high-quality monthly dividend-paying stocks. With that in mind, let’s explore two reliable monthly-paying dividend stocks that could help deliver steady and consistent income.

Colored pins on calendar showing a month

Source: Getty Images

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust(TSX: SRU.UN) is one of the top monthly dividend stocks to consider right now. The REIT operates 198 strategically located properties, with nearly 90% of Canadians living within 10 kilometres of one of its centres. Its tenant base is also strong, with about 95% comprising regional or national retailers and roughly 60% focused on essential services — factors that help maintain stable occupancy across market cycles.

This resilient occupancy, combined with steady lease renewals, new leasing activity, and consistent rental growth, supports its solid financial performance and ability to deliver reliable income. The company currently pays a monthly distribution of $0.15417 per unit, yielding approximately 6.5% annually.

Looking ahead, demand for retail space remains robust, while elevated construction costs constrain new supply. To capitalize on this environment, SmartCentres continues to expand its diversified portfolio across retail, residential, seniors housing, and self-storage segments. It also has a substantial development pipeline of 87.4 million square feet of mixed-use projects, including 0.8 million square feet currently under construction. Supported by these growth initiatives and favourable industry dynamics, the REIT appears well-positioned to sustain strong financial performance and continue delivering attractive monthly income.

Whitecap Resources

Another dependable monthly dividend stock to consider is Whitecap Resources (TSX: WCP), an oil and natural gas producer with operations concentrated in Western Canada. The company has strengthened its production profile following its May 2025 merger with Veren, while the integration of combined assets has delivered annualized cost synergies of $300 million — well above the initial estimate of $210 million.

Although commodity prices have eased from last month’s highs amid the announcement of a ceasefire and ongoing peace talks between the United States and Iran, they remain relatively elevated, continuing to support producers. At the same time, lingering geopolitical uncertainty could keep energy prices firm, creating a favourable backdrop for Whitecap’s growth.

The company also boasts a strong resource base, with 2.2 billion barrels of oil equivalent (BOE) in proved and probable reserves, representing a reserve life index of over 16 years. It plans to invest approximately $2–$2.1 billion this year to enhance its production capacity. Following the Veren acquisition, management expects average production to reach 370,000–375,000 BOE/d in 2026, with the midpoint reflecting a 21.2% year-over-year increase.

With supportive commodity prices and ongoing expansion initiatives, Whitecap appears well-positioned to drive earnings growth and sustain dividend payouts. It currently pays a monthly dividend of $0.0608 per share, yielding about 5.1% at current prices.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.

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