Ask any retiree what they miss most about a paycheque, and the answer is usually the same. It showed up on time, month after month.
Retirees can consider replacing a paycheque with a portfolio of Canadian dividend stocks that offer an attractive yield and a monthly payout in 2026.
Here are two TSX dividend stocks you can add to your portfolio right now.
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Pizza Pizza Royalty: A cut of every slice
Pizza Pizza Royalty (TSX: PZA) owns the trademarks and collects a monthly royalty from Pizza Pizza Limited, based on restaurant sales.
The pool holds 814 restaurants, including 712 Pizza Pizzas and 102 Pizza 73s, according to CFO Christine D’Sylva on the Aug. 5 earnings call.
In Q2 2026, same-store sales fell 5%, which drove royalty income lower by 3.6% year over year. CEO Paul Goddard pointed to tight household budgets, a weaker NHL playoff run than last year, and fewer international students at campus locations.
Pizza Pizza was forced to cut the monthly dividend by almost 13% from $0.075 per share to $0.0675 per share. The payout ratio improved to 102% from 108%, and the company still holds a $2.2 million cash reserve.
Despite the dividend cut, the company pays shareholders a yield of 7.6% in October 2026. A payout ratio of more than 100% indicates that Pizza Pizza pays out more than it earns as dividends.
Management expects its value offers to drive customer footfall over the next 12 months.
A “Buck an Inch” deal became the top seller, and pizza slices grew 25% bigger. Goddard also said recent data shows Pizza Pizza gained market share in Ontario and across Canada.
“We are not standing idly by on the sidelines,” Goddard told analysts.
Royalties depend on guest traffic, and traffic is soft, which could translate into further dividend cuts in the future.
Nexus Industrial REIT: Warehouses with a data centre twist
Nexus Industrial REIT (TSX: NXR.UN) owns industrial buildings across Canada.
In Q2, its occupancy rose to 97% while net operating income grew by 6.2% to $34.1 million. Renewals landed 6% above old rents, and CEO Kelly Hanczyk said market rents still sit 14.9% above what tenants pay today.
Nexus earned an investment-grade rating and sold $500 million of bonds, split between 4.2% three-year notes and 4.6% five-year notes.
Nexus is exploring whether new buildings in Richmond and Kelowna, B.C. could serve data infrastructure users. The Richmond project costs $41.3 million and targets a minimum 6% return. Hanczyk says the upside could be much higher if tenants sign on.
He kept his tone measured on the call. “I’m looking at it like miners trying to find the diamond in the rough,” he said.
The REIT pays an annual dividend of $0.64 per share, which translates to a yield of over 8.5%. However, the units trade at a 47% discount to net asset value, as the management reported a NAV of $13.23 per unit.
In the first six months, the payout ratio for Nexus stood at 99.3%. It reported adjusted funds from operations of $0.154 per share, just below the $0.16 paid out for the quarter. Management still expects the full-year payout to land below 100%.
How do these two dividend stocks compare?
Here is a quick side-by-side comparison, using recent prices:
- Pizza Pizza Royalty: about 7% yield, paid monthly, backed by restaurant sales
- Nexus Industrial REIT: about 9% yield, paid monthly, backed by rent from industrial tenants
While the two Canadian stocks offer a monthly payout, you need to analyze whether dividends are sustainable across economic cycles.
