When you’re investing hard-earned savings in dividend stocks, you shouldn’t give up on the possibility of earning capital gains just because your main goal is to generate regular income. I think the most interesting dividend investments are often those that offer a reasonable payout while the underlying business continues to grow.
In this article, I’ll highlight a TSX monthly dividend stock that could turn a $10,000 investment into approximately $23 in monthly passive income. While that may not seem like a huge amount at first, I believe the bigger opportunity lies in what that investment could become over time as its share price appreciates.
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Mullen Group stock
One Canadian stock worth considering for monthly passive income right now is Mullen Group (TSX: MTL). Headquartered in Okotoks, this logistics giant provides transportation, warehousing, freight management, and specialized industrial services across North America.
MTL stock has been on an impressive run, skyrocketing by nearly 106% over the last year. Its shares currently trade at $29.50 apiece, giving the company a market cap of $2.8 billion. Besides its strong share price performance, MTL also offers a 2.8% annualized dividend yield, with payouts distributed every month.
Interestingly, the stock’s recent rally has come alongside significant improvements in Mullen’s underlying business. Stronger demand for its services, improving operating efficiency, and contributions from acquisitions have helped the company deliver record financial results.
Record earnings support the rally
For investors seeking monthly dividend income, Mullen Group’s improving financial performance makes it even more attractive. In the third quarter of 2026, Mullen’s revenue surged 16.3% year-over-year (YoY) to a record $653.2 million. Of this increase, $44.3 million came from internal business growth, while higher fuel surcharge revenue added $37.7 million. Acquisitions contributed another $9.4 million.
At the same time, revenue from the company’s specialized and industrial services segment jumped 24.7% YoY amid greater demand for pipeline transportation, water management, and drilling-related services. Meanwhile, its U.S. and international logistics segment posted an even stronger 30.4% YoY revenue jump as freight market conditions improved.
Better yet, Mullen’s adjusted operating income before depreciation and amortization climbed 23% YoY last quarter, backed by stronger operating margins and growth across its business segments.
More opportunities for long-term growth
Beyond its impressive earnings, Mullen’s financial strength and expansion plans could help support its monthly dividend payouts in the years ahead.
The company ended September with $213.9 million in cash and $525 million in unused bank credit facilities, giving it considerable flexibility to pursue new growth opportunities.
In fact, Mullen Group recently announced its acquisition of Willson International as part of its ongoing expansion strategy. The company also sees opportunities from potential large-scale infrastructure projects across Canada, which could create additional demand for its transportation and logistics services.
These growth initiatives, coupled with improving profitability, make Mullen Group an attractive Canadian stock for investors seeking both regular income and long-term growth potential.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Mullen Group | $29.50 | 338 | $0.07 | $23.66 | Monthly |
| Prices as of Oct 28, 2026 |
How much monthly dividend income could you earn?
With Mullen Group continuing to strengthen its business, let’s see how its monthly dividend payments could translate into passive income for your portfolio.
At its current annualized dividend yield of 2.8%, a $10,000 investment in MTL stock could generate about $280 in annual dividends. That works out to about $23 per month.
While this monthly income might look modest initially, reinvesting your dividends could help you buy additional shares and gradually build a larger income stream over time.
The foolish bottom line
Given its impressive earnings growth, solid financial position, and expanding business opportunities, I believe Mullen Group could be an attractive stock to buy right now. Its monthly dividend payments add another reason for income-focused investors to consider holding MTL stock for the long term.
