Monthly Cash Kings: 3 Canadian Stocks That Pay Back 12 Times a Year

Three high-yield Canadian stocks are excellent options for income-oriented investors looking for monthly dividends.

| More on:

The talk that “not all dividend stocks are created equal” is also true in the context of payout frequency. Most firms that share a portion of their profits pay quarterly dividends. However, if you prefer Canadian stocks that pay back 12 times a year, invest in monthly cash kings.

Freehold Royalties (TSX:FRU), Chartwell Retirement Residences (TSX:CSH.UN), or Boston Pizza Royalties Income Fund (TSX:BPF.UN) trades at less than $20 per share, but the average dividend yield is 7.14%. You can reinvest the dividends every month for faster compounding of your principal.

Lower-risk returns

Freehold Royalties isn’t your typical oil & gas producer that pays hefty dividends. The $2 billion company pays dividends from a high-netback portfolio of mineral titles and royalties on oil and gas properties across North America.

The diverse, long-duration asset base enables Freehold to generate robust cash flows at various commodity prices. Oil and natural gas liquids comprise 63% of production volumes, while 37% comes from natural gas. The portfolio in Canada and America contributes 57% and 43% to total revenues, respectively.

The well-capitalized oil producers doing business with Freehold include Canadian Natural Resources, Vermilion Energy, ConocoPhillips, and ExxonMobil. Management said the 779 gross wells drilled on North American royalty lands in the first nine months of 2023 was the highest level of gross drilling activity through the first three quarters in Freehold’s 27-year history.

At $13.62 per share, the dividend offer is a juicy 7.93%. Freehold aims to provide investors with lower-risk returns and long-term growth. The quality assets and business model assure sustainable dividends.

Accelerating occupancy and earnings

Chartwell is a good source of monthly dividend income. This $2.56 billion company serves Canadian seniors and provides them with housing communities, whether independent living, assisted living or long-term care. The occupancy rate suffered because of COVID-19 but has steadily increased every month from April 2022 (79.1%) to January 2024 (85.5%).

In the first three months of 2023, resident revenue increased 3% year over year, while net income soared 6,740% to $141.44 million from a year ago. Its chief executive officer (CEO), Vlad Volodarski, noted the accelerating occupancy and earnings growth. He added the asset management projects will reposition the property portfolio toward high growth, improve financial flexibility, and build a solid foundation for future growth.

Suppose you invest today, CSH.UN pays a lucrative 5.5% dividend.

Pure dividend play

Boston Pizza on the TSX refers to the $327.5 million company that owns trademarks used by Boston Pizza International or the popular casual dining brand. At $15.39 per share, you can partake in the mouth-watering 8.34% dividend. This restaurant stock is a pure dividend play, so don’t expect much on price appreciation.

Is the business profitable? Yes, but income dropped below $10 million in 2020 due to the pandemic-induced lockdowns. However, the average net income in 2021 and 2022 was $33.99 million. In the first nine months of 2023, total revenue and net income rose 11% and 1% year over year to $37.1 million and $24.3 million, respectively.

Excellent options

Freehold, Chartwell, and Boston Pizza may not be the anchor stocks in an investment portfolio. However, they are excellent options for income-oriented investors looking for monthly dividend income.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Freehold Royalties, and Vermilion Energy. The Motley Fool has a disclosure policy.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

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

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »