For investors looking to generate steady passive income, Canadian monthly dividend stocks can be a great addition to a portfolio. Instead of waiting for quarterly payouts, these stocks pay dividends every 30 days, providing consistent cash flow that can be reinvested or used as extra income.
In this article, I’ll highlight three fundamentally strong TSX stocks that pay dividends every month, making them ideal for income-focused investors.
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Northland Power stock
The first monthly dividend stock that income-focused investors can consider right now is Northland Power (TSX:NPI), a top player in the clean energy space. The company generates electricity from natural gas, wind, and solar, focusing on sustainability while maintaining a market cap of $4.5 billion. Currently, NPI stock trades at $17.42 per share and offers an attractive 7% annualized dividend yield, paid monthly.
NPI stock has struggled lately, down 27.4% over the past year, but the business itself still looks on solid ground. While its third-quarter results were affected by lower offshore wind production, Northland remained on track to meet its full-year guidance. Nevertheless, its utility segment quarterly revenue jumped 9% YoY (year over year) to $85 million with the help of an increased asset base and rate escalations.
Northland is also pushing forward with major projects in Taiwan, Poland, and Canada. These developments could drive long-term growth, making Northland an appealing choice for investors seeking reliable monthly income.
Slate Grocery REIT stock
Slate Grocery REIT (TSX:SGR.U) could be another attractive monthly dividend stock to consider on the TSX today. It owns and manages grocery-anchored real estate across the United States, ensuring stable rental income from essential retail tenants.
After rallying by about 20% over the last year, SGR stock trades at $14.38 per share with a market cap of $848.5 million. Investors looking for passive income might appreciate its 8.5% annualized dividend yield, which is paid out every month.
Slate Grocery’s revenue rose 3% YoY in the fourth quarter to $53.08 million, while net operating profit climbed 3.3% from a year ago to $41.46 million. More impressively, its net profit skyrocketed 204% YoY.
To accelerate its financial growth, the company is continuing to focus on expansion as it recently signed 2.7 million square feet of new leases in 2024 at higher rental rates. With strong 94.8% occupancy and long-term rent growth potential, Slate Grocery REIT remains a top pick for reliable monthly dividends.
Granite REIT stock
That brings us to my third pick: Granite Real Estate Investment Trust (TSX:GRT.UN), a heavyweight in the industrial real estate space. Granite owns and manages logistics, warehouse, and industrial properties across North America and Europe. Right now, its stock trades at $69.02 per share with a market cap of $4.3 billion. Investors looking for steady monthly income will like its 4.9% annualized dividend yield.
In the third quarter of 2024, Granite’s net operating profit climbed by 9.5% YoY to $119.6 million due to rent hikes, new leases, and development completions. Meanwhile, its funds from operations also rose 7.7% from a year ago to $85.2 million, showing that its cash flow is holding strong.
Interestingly, the REIT recently expanded facilities in Ontario and the Netherlands, locking in long-term tenants in high-demand areas, which should also improve its financial growth trends in the coming years, making it an attractive long-term investment.
