As the ongoing market selloff is picking up pace, investors are getting worried about their investments. That’s why it’s always important to diversify your stock portfolio by holding multiple stocks from different industries and sectors. Besides that, you may also want to add some safe dividend stocks to your portfolio that can help you earn extra cash each month, even in difficult market environments.
In this article, I’ll highlight two high-yielding Canadian monthly dividend stocks you can buy in October 2023 and hold for the long term.
Freehold Royalties stock
Freehold Royalties (TSX:FRU) is a Calgary-headquartered company with a market cap of $2.2 billion, as its stock trades at $14.38 per share after losing 9.2% of its value in 2023. As its name suggests, the company mainly focuses on acquiring and managing royalties in the energy sector.
Although FRU stock has seen more than 9% value erosion year to date, it still has delivered strong 298% positive returns in the last three years. At the current market price, FRU offers an impressive 7.5% annualized dividend yield and distributes these dividend payouts every month.
In the second quarter of 2023, Freehold’s revenue declined by 32.1% YoY (year over year) to $73.7 million. Even as its average quarterly production level increased 9% from a year ago to 14,667 barrels of oil equivalent per day, weaker commodity prices affected its financial growth. Despite the short-term weakness, the long-term outlook for crude oil and natural gas prices remains strong, with an expected surge in demand with limited supply. Considering that, you can expect Freehold’s financial growth trends to improve in the coming quarters. That’s why you can expect its share prices to recover fast.
Besides that, Freehold’s drilling activity in the first half of 2023 remained strong across North America, which is expected to contribute positively to its earnings growth in the coming years.
Sienna Senior Living stock
Sienna Senior Living (TSX:SIA) is another high-yielding Canadian monthly dividend stock you can buy now and hold for years. This Markham-headquartered company currently has a market cap of $766 million as its stock trades at $10.61 per share with nearly a 2.7% year-to-date loss. Just like Freehold Royalties, Sienna also distributes its dividend payouts monthly and currently has a very attractive annualized dividend yield of 8.8%.
The company primarily provides a variety of independent and assisted living options to seniors across Canada, with long-term care and retirement being its two major business segments. After facing operational difficulties due to coronavirus-related restrictions in 2020, Sienna saw a healthy financial recovery in 2022. Last year, the company’s revenue rose 7% YoY to $718.6 million with the help of improved occupancy rates at its properties.
Notably, the seniors’ population in the 85-plus age group is projected to triple in the next 25 years based on 2021 census data, which should lead to stronger demand for Sienna’s services. That’s why I find this Canadian monthly dividend stock really attractive to buy now, especially for investors who can hold it for the long term.
