Investing in Canadian dividend stocks remains a popular strategy in 2025 for retail investors seeking reliable passive income. Beyond the appealing returns, these stocks often offer flexibility in the cadence of dividend payouts, with options ranging from quarterly distributions to monthly payments, providing consistent income streams to suit diverse financial goals.
Fortunately, the Canadian market offers a variety of high-quality dividend-paying stocks that deliver consistent monthly income. These range from utility and energy companies to real estate and infrastructure firms, many of which have long histories of stable or growing payouts. With interest rates and inflation top of mind in 2025, monthly dividend stocks provide a practical hedge while offering income stability in uncertain markets.
If passive income is what you’re looking for, keep on reading to learn all about Canadian monthly dividend stocks.
How do monthly dividend stocks work?
Most Canadian dividend stocks pay out on a quarterly basis. At the beginning or end of a fiscal quarter, the company will declare a cash dividend, payable to shareholders as of a record date. After that date, the stock goes “ex-dividend“, meaning any shareholders who purchase the stock afterwards will not receive the dividend.
Monthly dividend stocks pay out on a monthly basis. Instead of declaring dividends during a quarterly earnings report, these companies will consistently declare and payout dividends monthly. For example, a company might declare a dividend of $1 per share every month instead of a dividend of $3 per share every quarter (three months).
Investing in Canadian monthly dividend stocks can be beneficial for investors relying on their portfolios for income. This is because more frequent dividend payments result in a more predictable stream of cash flow. With quarterly Canadian dividend stocks, investors have to wait until the next payout every three months or sell shares in the interim.
Canadian monthly dividend stocks can be slightly advantageous over quarterly dividend stocks, especially for large accounts, all things being equal. This is because your reinvested dividend has more time to compound and is being reinvested more frequently. This extra compounding can make a noticeable difference once you have enough invested.
What Canadian companies pay monthly dividends?
Generally, Canadian companies that pay monthly dividends tend to come from the energy, utilities, or real estate market sectors. Most of these companies are well-known dividend payers in general, but a small subset will opt for monthly payments to satisfy the needs of shareholders. Ultimately, the decision on how frequently to pay a dividend is up to the board of directors of a company.
A good way to find Canadian companies that pay monthly dividends is via various free online stock screeners. Investors can filter for monthly payments when it comes to dividend frequency. Keep in mind that companies can pause or discontinue dividends during times of financial stress, so the monthly frequency is not a guarantee of stable cash flows.
Top Canadian monthly dividend stocks in Canada
The following is a list of three of the best monthly dividend stocks in Canada. For this list, income trusts and real estate investment trusts (REITs) were excluded. Companies with a strong track record of paying monthly dividends remain popular among investors seeking reliable and consistent income.
| Company | Description | Dividend Yield |
| Exchange Income Corporation (TSX:EIF) | Diversified Canadian firm with aviation and manufacturing businesses focused on stable cash flow. | 3.45% |
| Whitecap Resources (TSX:WCP) | Oil-weighted energy producer with low-decline assets and focus on carbon capture innovation. | 6.76% |
| Mullen Group (TSX:MTL) | Leading logistics and transportation company serving Canada’s energy and general freight sectors. | 5.97% |
Exchange Income Corporation (EIF)
Exchange Income Corporation is a diversified Canadian holding company with operations in aviation and manufacturing. Its aviation segment serves remote and underserved regions across Canada, while its manufacturing arm supports telecommunications, defence, and infrastructure. EIF has built a reputation for disciplined acquisitions and steady expansion through niche, cash-generative businesses.
EIF is also one of the most respected monthly dividend payers on the TSX. Its broad mix of aviation services, aerospace operations, industrial businesses, and long-term contracts provides stable, recurring cash flow to support a reliable monthly payout. Management maintains a healthy payout ratio and strong free cash flow, giving investors confidence in the durability of the dividend, whick currently pays out monthly with a yield of 3.45%.
Performance has been equally impressive. Over the past year, the stock reached a 52-week high of C$67.85 on July 10, 2025, marking more than 40% year-over-year growth. Long-term shareholders have been rewarded even more: the stock is up 118% over the past five years and 342% over the past 15 years, with total returns rising to 184% and 1,088% respectively when dividends are reinvested. Combined with consistent earnings strength, strategic acquisitions, and proven management execution through shifting economic conditions, EIF continues to demonstrate strong growth potential alongside dependable monthly income.
Whitecap Resources (WCP)
Whitecap Resources is a Canadian oil-weighted producer with operations focused in Western Canada, including Alberta, Saskatchewan, and British Columbia. The company specializes in light oil production, with a strategic emphasis on low-decline assets and carbon capture utilization and storage (CCUS) projects, making it a key player in the energy transition. Whitecap continues to pursue operational efficiencies and accretive acquisitions to grow its production base.
Whitecap has emerged as one of the most undervalued names in the Canadian energy sector. Shares have climbed to their highest levels in five years, supported by a strong balance sheet, solid operating performance, and a compelling valuation of roughly seven times trailing earnings. The company’s transformative $15 billion merger with Veren in 2025 has made Whitecap the seventh-largest oil and gas producer in Canada, substantially expanding its asset base and long-term growth potential. Post-merger results have been strong: Q3 2025 revenues rose 86%, free funds flow jumped 157%, and production per share gained 4.7%, even amid softer energy prices.
Whitecap’s monthly dividend remains a major draw. The forward yield sits around 6.7%, supported by healthy free cash flow, a net-debt-to-funds-flow ratio of 1, and liquidity of $1.6 billion. Management has raised its 2025 production guidance to 305,000 barrels of oil equivalent per day (boe/d) and approved a 2026 capital program targeting 370,000–375,000 boe/d. With ongoing synergies from the Veren merger, disciplined capital management, and uninterrupted monthly payouts since 2013, Whitecap is well-positioned to deliver both stable income and long-term value for investors.
Mullen Group (MTL)
Mullen Group is one of Canada’s largest transportation and logistics providers, with operations spanning less-than-truckload (LTL), warehousing and logistics, and specialized oilfield and heavy-haul services. Its diversified exposure across infrastructure, e-commerce, and energy activity provides resilience throughout economic cycles and supports a stable, long-term growth profile.
Recent performance highlights this strength. While the stock has faced pressure over the past year, it has rebounded more than 8% in the last three months and now trades near C$14.40. Mullen continues to benefit from strong LTL demand, ongoing e-commerce–driven warehousing growth, and high-margin specialized transportation tied to commodity cycles. Its financial foundation remains solid: manageable debt, consistent share buybacks, and a long history of returning capital through dividends and special distributions.
The company’s recent results reinforce its momentum. Q3 revenue reached a record $561.8 million, up 5.6% year over year, supported by acquisitions such as Cole International and Pacific Northwest Moving, which added more than $66 million in new revenue. Net operating cash surged 55% to $102.7 million, providing ample coverage for its monthly dividend. With a yield around 6% and a payout ratio backed by stable free cash flow, Mullen’s disciplined acquisition strategy and expanding service offerings position it well to continue delivering reliable monthly income for investors.
Are monthly dividend stocks safe?
All stocks, including monthly dividend stocks, carry market risk. This is due to the unavoidable fluctuations in the share prices of individual companies caused by broad market volatility. Market risk is what causes even the most solid of stocks to tank in unison during a stock market correction or stock market crash. For this reason, monthly dividend stocks still carry risk like any other stock.
The safety of monthly dividend stocks often depends on their fundamentals. A good metric to assess is the payout ratio, which calculates the percentage of a company’s earnings paid to its shareholders as a dividend. A payout ratio that is 100% indicates that a company is paying out more in dividends than it has in earnings, which is unsustainable. Be wary of stocks with a high payout ratio as this can lead to a risk of a dividend cut or discontinuation if the company experiences financial distress.
Are monthly dividend stocks a good investment?
The answer to this question depends on an investor’s objectives, time horizon, and risk tolerance. For investors seeking consistent income and the ability to withstand market fluctuations, monthly dividend stocks can be a good investment. These investors may prefer monthly dividend stocks for the more frequent payments, which can help fund their expenses without selling shares.
For younger investors seeking capital growth, monthly dividend stocks might not be ideal. For these investors, a total return approach by investing in non-dividend paying growth stocks can work. Monthly dividend stocks tend to be from a few stock market sectors only, which can exclude non-dividend paying sectors like technology.
Finally, investors with a low risk tolerance might not want monthly dividend stocks due to market risk. These investors may seek to fill their income needs with high-yielding corporate bonds or preferred shares. By doing so, they trade some market risk for interest rate risk. There’s no free lunch out there, so be sure to do your research and consider the pros and cons of each approach.