Pensioners: 3 Stocks That Cut You a Cheque Each Month

These three monthly paying dividend stocks with high yields could boost pensioners’ passive income.

| More on:

The Bank of Canada has slashed its benchmark interest rates three times this year and could continue with its monetary easing initiatives as inflation cools. Amid falling interest rates, monthly-paying dividend stocks have become attractive for pensioners who want to earn a stable income to meet recurring expenses, such as rent and utility expenses. Against this backdrop, let’s look at three top monthly paying dividend stocks that can boost your passive income.

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be an excellent monthly paying dividend stock to have in your portfolio. Given its highly defensive healthcare properties, government-backed tenants, and long-term lease agreements, the company enjoys higher occupancy and collection rates, irrespective of the market conditions. The weighted average lease expiry of these contracts stands at 12.9 years. Besides, its inflation-indexed leases shield its financials against rising prices.

Further, NWH has strengthened its balance sheet through its non-core assets sales program. Since its inception in August last year, the company has generated $1.4 billion by selling 46 properties and $170.3 million from selling unlisted securities. The company has utilized the net proceeds from these sales to pay off higher interest-bearing debt, thus lowering its leverage. Besides, the REIT is developing next-gen properties that can create long-term earnings growth. Given its improving financial position, defensive healthcare portfolio, and healthy growth prospects, I believe NWH’s future dividend payouts will be safer. Meanwhile, it currently pays a monthly dividend of $0.03/share, translating into a healthy forward yield of 6.5%.

Whitecap Resources

Whitecap Resources (TSX:WCP) is an oil and natural gas-producing company offering an attractive forward yield of 7.1%. The company had excellent operational success in the first half of this year, with its total production volumes increasing by 14.8% year-over-year. Meanwhile, management hopes its strong performance will continue amid its ability to mitigate downtime and develop assets in Montney and Duvernay.

Amid these solid performances and healthy growth prospects, management projects its average total production this year to come closer to the higher end of its earlier provided guidance of 167,000–172,000 barrels of oil equivalent per day. Further, the company has planned to make a capital investment of $6 billion from 2025 to 2029, which could increase its total average production at an annualized rate of 5%. Also, WCP’s management expects to become debt-free by the end of 2029. Considering all these factors, I believe the company is well-positioned to continue paying monthly dividends at a healthier rate.

Pizza Pizza Royalty

Another monthly paying dividend stock that would be a worthy buy for income-seeking pensioners would be Pizza Pizza Royalty (TSX:PZA), which operates Pizza Pizza and Pizza 73 brand restaurants through its franchisees. Although the company’s same-store sales fell in the June-ending quarter, the management hopes to retain its existing customers and win new ones through its high-quality, value-oriented menu offerings. Further, its old restaurant renovation program could boost footfall.

Besides, PZA continues to expand its footprint and hopes to increase its traditional restaurant network by 3-4% this year. These expansion plans could boost its cash flows, thus making its future dividend payouts safer. Currently, the company offers a forward dividend yield of 7.2% and trades at a cheaper price-to-sales multiple of 0.7, making it an attractive buy.

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 Whitecap Resources. The Motley Fool has a disclosure policy.

More on Dividend Stocks

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

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 »