3 Monthly Dividend Stocks for a Stable Passive Income

Inflation in Canada has risen, with Statistics Canada reporting an annual rate of 2.9% in May, up from 2.7% in April. This uptick has been driven by increased prices for essential items like fresh produce, meat, and shelter, impacting households nationwide. To mitigate these rising costs, investors are increasingly seeking out high-yielding, monthly-paying dividend stocks for reliable passive income. Here’s a look at three top monthly-paying dividend stocks that offer stability and income potential, aligned with the upcoming dividend calendar.

SmartCentres Real Estate Investment Trust (TSX:SRU.UN)

SmartCentres REIT is a well-established player in the Canadian real estate market, owning and managing a diversified portfolio of 193 properties spanning 35.1 million square feet. The REIT benefits from strategic property locations, high occupancy rates, and a strong tenant base, contributing to stable rental income. Additionally, SmartCentres has a robust pipeline of development projects, including mixed-use developments, which positions it for future growth.


Currently, SmartCentres pays a monthly dividend of $0.1542 per share, reflecting an attractive forward yield of 8.16% based on recent prices. The REIT trades at a reasonable NTM price-to-earnings multiple of 18.3, making it an appealing choice for income-focused investors seeking steady returns.

Extendicare (TSX:EXE)

Extendicare specializes in providing care and services to seniors across Canada, operating 123 long-term care homes and offering home healthcare services. The company has seen notable improvements in its operating metrics, including increased occupancy rates and growing demand for its healthcare services amidst an aging population.


With strategic redevelopment projects underway to enhance its long-term care facilities, Extendicare is poised for continued growth. The company’s commitment to strengthening its balance sheet through asset divestitures further underscores its financial stability. Extendicare currently offers a healthy forward dividend yield of 7.28%, making it an attractive investment option for those looking to capitalize on the growing demand for senior care services.

Pizza Pizza Royalty (TSX:PZA)

Pizza Pizza Royalty operates a unique business model by collecting royalties from its franchisees operating Pizza Pizza and Pizza 73 brand restaurants across Canada. This asset-light approach ensures stable and predictable cash flows, insulated from fluctuations in operating costs or inflationary pressures.


The company has maintained a strong track record of positive same-store sales growth, reflecting effective brand management and customer engagement strategies. With plans to expand its restaurant footprint and capitalize on ongoing promotional activities, Pizza Pizza Royalty is well-positioned to deliver consistent royalty income to its shareholders.


Pizza Pizza Royalty pays a monthly dividend of $0.0775 per share, translating to a forward yield of 7.19% based on current prices. This makes it a compelling choice for investors seeking reliable income streams amidst economic uncertainties.


As inflationary pressures continue to impact consumer purchasing power, investing in high-yielding, monthly-paying dividend stocks like SmartCentres REIT, Extendicare, and Pizza Pizza Royalty can provide a stable source of passive income. These companies offer attractive dividend yields backed by solid operational performance and growth prospects within their respective sectors. By diversifying into these dividend-paying stocks, investors can potentially mitigate the effects of inflation while benefiting from regular income distributions over the long term.

Location: Canada

Comments

Post a Comment

Popular posts from this blog

Unveiling TSX Basic Material Stocks But Do Focus on TSX:NTR

Image
The Toronto Stock Exchange (TSX) hosts a diverse array of sectors, and the basic materials sector stands as a cornerstone of the Canadian economy. Within this dynamic landscape, TSX NTR takes center stage. In this article, we'll delve into the TSX basic materials sector stock , offering insights for investors and shedding light on the role of TSX: NTR in this vital market. Image Credit: Freepik TSX Basic Materials Sector Overview The TSX basic materials sector comprises companies engaged in the extraction, processing, and production of raw materials, including metals, minerals, and forestry products. As a crucial component of Canada's resource-rich economy, the basic materials sector on the TSX reflects global demand, commodity prices, and industry-specific dynamics. Investors exploring opportunities within the TSX basic materials sector stock often navigate through factors such as commodity prices, geopolitical events, and technological advancements. Understanding the nuances ...
Read more

Increase Monthly Income: 21,622 ASX Shares = $200 Extra!

Image
Investing for passive income is a smart financial move, and the ASX dividend yield stock , Accent Group Ltd (ASX: AX1), has a proven track record of delivering consistent dividends to its shareholders. In this article, we will explore how Accent Group could be the key to unlocking a steady stream of passive income, potentially amounting to $2,400 per year or $200 per month. Image Credit: Pexels Diversification in Portfolio Diversifying your investment portfolio is crucial for long-term financial success. Relying on a single business for all your income is risky. Here, we will delve into why Accent Group is a compelling option for income investors, highlighting its unique features that set it apart in the market. Understanding Accent Group Originally a wholesale distributor, Accent Group has evolved into a major player in the footwear industry. Representing renowned brands such as CAT, Dr Martens, Skechers, and more, the company operates over 800 stores globally and boasts a robust e-co...
Read more