Getting paid every month instead of every quarter can make dividend investing feel a lot more rewarding. Whether investors are using the income to cover expenses or simply reinvesting distributions, monthly dividend stocks can create a stable and more predictable passive-income stream.
That’s why Canadian income stocks with monthly dividends continue attracting investors’ attention. And right now, I find two TSX-listed companies, Freehold Royalties (TSX:FRU) and Killam Apartment REIT (TSX:KMP.UN), attractive because of their reliable monthly payouts and strong underlying businesses. Let me explain why these Canadian stocks could be worth buying for long-term investors.
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Freehold Royalties stock
Energy royalty businesses can be appealing for income-focused investors because they often generate cash flow without directly taking on the full operating costs of production. That’s one reason Freehold Royalties remains a favourite of dividend investors. The Canadian company manages a large portfolio of oil and natural gas royalties across Canada and the United States.
After surging by 39% over the last year, FRU stock currently trades at $17.31 per share, giving it a market cap of $2.9 billion. At the current market price, it also offers a dividend yield of 6.2%, with monthly distributions.
The company’s recent growth has been supported partly by strategic acquisitions. During the first quarter of 2026, Freehold invested $19 million to acquire royalty interest lands in the core of the Permian Basin, one of North America’s most productive oil regions. This acquisition strengthens its exposure to premium-priced light oil production while expanding its long-term inventory opportunities. The company’s liquids-weighted portfolio also benefits from lower transportation costs and stronger realized pricing.
Financially, Freehold generated $59 million in funds from operations in the latest quarter, supporting its ability to continue returning capital to shareholders. Its average realized price reached $54.97 per barrel of oil equivalent, including a 31% premium on U.S. production.
Overall, Freehold’s royalty-based business model helps create relatively stable cash flow while limiting direct operational risks. That structure could continue supporting dependable monthly dividends for investors over time.
Killam Apartment REIT stock
The second stock, Killam Apartment REIT, gives exposure to Canada’s residential rental market while continuing to deliver consistent monthly income. This Halifax-based real estate investment trust (REIT) owns and operates a diversified portfolio of apartments and manufactured home communities across Canada. Its properties are concentrated mainly in Atlantic Canada and Ontario, regions that continue benefiting from population growth and strong housing demand.
Killam Apartment REIT stock currently trades at $18.08 per share with a market cap of $2.2 billion. Its shares have climbed more than 14% so far in the second quarter while continuing to offer a yield of 4%, with monthly dividend payouts.
In the first quarter, Killam maintained healthy occupancy levels of 97%, helping support strong same-property revenue and net operating income (NOI) growth. Similarly, the REIT’s consolidated same-property revenue rose 3.6% year over year, while same-property NOI increased 3.9%.
Much of that growth came from strong performance across its Atlantic Canada portfolio. As a result, Killam posted first-quarter net profit of $50.3 million along with funds from operations of $0.28 per share.
Recently, the REIT completed its Brightwood development project ahead of schedule and below budget, highlighting operational discipline. At the same time, Killam continues repositioning its portfolio by targeting up to $150 million in non-core asset dispositions while increasing investment through its share repurchase program. All these positive factors make this REIT look attractive for long-term income-focused investors.
