Need Passive Income? Turn $15,000 Into $100 Every Month

Given their stable cash flows and high yields, these three TXS stocks can deliver a monthly passive income of $100.

| More on:

Amid the growing equity market volatility, investors could start accumulating monthly-paying dividend stocks to earn a stable passive income irrespective of the broader market performance. Also, this passive income will help investors mitigate some of the impacts of price rises in this inflationary environment.

By investing around $5,000 in each of the three monthly-paying dividend stocks, an investor can earn over $100 per month or $1,200 per annum. Meanwhile, let’s look at the three TSX stocks in detail.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCY
NWH$6.32791$4999.12$0.06667$52.7Monthly
PZA$14.75338$4985.5$0.075$25.4Monthly
EXE$6.49770$4997.3$0.04$30.8Monthly
Total$108.9

NorthWest Healthcare Properties REIT

Facing rising interest rates and a temporary increase in its leverage, NorthWest Healthcare Properties REIT (TSX:NWH.UN) has been under pressure over the last 12 months. It has lost over half its stock value compared to its 52-week high. Amid the steep correction, the company’s price-to-book multiple has declined to 0.7 while its forward dividend yield has increased to 12.65%.

Earlier this month, the REIT (real estate investment trust) posted its third-quarter performance, highlighting topline growth of 12.5%. However, its adjusted funds from operations per unit declined by 35% to $0.13. Lower management fees and increased interest expenses due to higher floating rates weighed on the company’s adjusted funds from operations.

Meanwhile, the company’s occupancy rate remained healthier at 96%. Besides, its long-term lease agreements, with a weighted average lease expiry of 13.5 years, government-backed tenants, and inflation-indexed rent, stabilize its cash flows. The REIT has also undertaken deleveraging initiatives, such as selling non-core assets and lowering its stake in a few joint ventures. Bolstered by the improving financial position, NWH.UN stock could continue to reward its shareholders by paying dividends at a healthier rate.

Pizza Pizza Royalties

Another top monthly-paying dividend stock to buy right now is Pizza Pizza Royalties (TSX:PZA), which operates Pizza Pizza and Pizza 73 brand restaurants through franchisees. The company collects royalties from its franchisees based on their sales. So, rising expenses due to wage and commodity inflation will not hurt its financials. Meanwhile, the company’s royalty income increased by 10.9% buoyed by same-store sales growth of 9.4% and the net addition of 16 new restaurants over the last 12 months. Its adjusted EPS (earnings per share) also grew 11.8% to $0.247.

Supported by its strong financials, the restaurant company has raised its monthly dividends seven times since April 2020. With a monthly dividend of $0.075/share, its forward yield translates to 6.1%. Notably, the company has planned to increase its restaurant count by 3–4% this year while continuing its restaurant renovation program. Along with these growth initiatives and solid same-store sales, the company can continue paying dividends at a healthier rate.

Extendicare

My final pick would be Extendicare (TSX:EXE), which offers care and services to Canadian senior citizens. During the second quarter, the company witnessed volume growth in its home healthcare segment while its long-term care (LTC) occupancy rate increased by 4.7% to 97.2%. Amid the improvement in its operating metrics, its revenue increased by 3.7%. Despite the topline growth, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) fell 18.2%. However, removing the impact of one-time items, the company’s adjusted EBITDA increased by $1.2 million.

Meanwhile, the demand for Extendicare’s service could rise in the coming years driven by growth in the aging population. Besides, the company recently completed its previously announced transaction with Revera, adding 56 LTC homes and around 7,000 beds. It has also started the construction of a 256-bed LTC home in Peterborough, Ontario, to replace its existing 172-bed home. So, given the favourable environment and growth initiatives, I believe the company’s dividends are safe. EXE currently offers a monthly dividend of $0.04/share, with its forward yield at 7.4%.

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.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »

Hourglass and stock price chart
Dividend Stocks

Goeasy Stock: Is It Heading for a 52-Week High?

Goeasy stock has been edging higher, especially after another record-setting earnings report. So are 52-week highs in sight?

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Here’s the Average TFSA Balance at Age 44 in Canada

You can invest your TFSA in funds like the BMO Canadian High Yield Dividend ETF (TSX:ZDV) to grow the balance.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

The Best Telecom Stock to Buy Before 2025

Choosing the safest stock from a decimated sector can be tricky, but if there is a reasonable chance of full…

Read more »