4 Monthly-Paying Canadian Dividend Stocks to Boost Your Passive Income

These four dividend stocks are an excellent addition to your portfolio, given their stable cash flows and high dividend yields.

protect, safe, trust

Image source: Getty Images

There are several ways to generate passive income. However, one of the cheapest and most convenient ways to earn passive income is investing in monthly-paying dividend stocks. However, investors should be careful in choosing quality stocks. Meanwhile, here are my four top monthly-paying dividend stocks that you can buy right now to earn stable passive income.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) operates an integrated network of hydrocarbon liquids and natural gas pipelines, generating over 85% of its adjusted EBITDA from regulated and fee-based contracts. So, its cash flows are predictable and stable, allowing it to pay dividends at a healthier rate. With a monthly dividend of $0.21 per share, its forward yield stands at 5.37%.

With rising energy demand, its asset utilization rate could increase in the coming quarters. Higher commodity prices could also boost its revenue from its marketing business. Further, the company’s capital investment of $658 million last year and $665 million this year could boost its financials in the coming quarters. Also, its financial position looks healthy, with its liquidity at $2.47 billion. So, I believe the company is well-positioned to continue paying dividends at a higher yield.

Pizza Pizza Royalty

Second on my list would be Pizza Pizza Royalty (TSX:PZA), which operates a highly franchised restaurant business. Due to its business model, the company is less susceptible to market volatilities. With the easing of pandemic-related restrictions, the company can operate its dining spaces and reopen its non-traditional restaurants, boosting its sales. Its investment in pickup, digital, and delivery services could continue to support its growth even in a post-pandemic world.

Pizza Pizza Royalty has also restarted its expansion plans and expects to increase its restaurant count by 5% this year. Given its growth initiatives and the improving business environment, the company’s dividends are safe. Currently, its forward yield stands at a juicy 5.62%.

TransAlta Renewable

Third on my list is TransAlta Renewables (TSX:RNW), which has an economic interest in 49 power-producing facilities. Amid the invasion of Ukraine by Russia, the European Union has decided on a 10-point plan to reduce its dependence on Russian oil. The plan includes the acceleration of building new wind and solar projects, which could benefit TransAlta Renewables.

Further, the company recently acquired the North Carolina Solar portfolio and Windrise wind facility, increasing its power-producing capacity by 328 megawatts. The company sells its power through long-term agreements, shielding against price and volume fluctuations. Supported by its robust cash flows, the company has raised its dividends at a compound annual growth rate (CAGR) of 3% since 2013. Meanwhile, it pays monthly dividends, with its forward dividend yield currently at 5.17%. So, I believe TransAlta Renewables to be an excellent buy for income-seeking investors.

NorthWest Healthcare Properties REIT 

NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be another excellent buy for income seeking-investors, given its stable cash flows and high dividend yield. It operates a highly diversified portfolio with 224 health care facilities spread across Europe, America, and Australia. It has long-term agreements with tenants, which reduces vacancies. Also, its government-backed tenants and inflation-indexed rent stabilize its financials, thus allowing it to pay dividends at an attractive rate. It pays monthly dividends with its forward dividend yield currently at 5.72%.

Further, the company is expanding its asset base in Australia, Europe, Brazil, and Canada and has committed $340 million. These investments could increase its cash flows in the coming quarters. So, I am bullish on NorthWest Healthcare.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »