Having a reliable source of monthly income has several benefits, especially in a volatile market. It could smooth out your cash flow, provide reassurance during downturns, and simplify financial planning in retirement. For Canadians, monthly dividend stocks could be a great way to earn dependable income every month while staying invested in strong, reliable companies.
Let’s take a look at two top Canadian monthly dividend stocks that offer stability, consistency, and the potential to shield your portfolio from ongoing market turbulence.
Image source: Getty Images
Bird Construction stock
The first safe Canadian stock to consider for monthly income is Bird Construction (TSX:BDT). This Etobicoke-based Canadian construction and maintenance firm has operations stretching coast to coast. It works on a wide mix of projects, from infrastructure and industrial builds to long-term maintenance contracts.
BDT stock currently trades at $22.33 per share with a market cap of around $1.2 billion. It also offers a monthly dividend with an annualized yield of about 3.8%, which makes it attractive for income seekers.
Earlier in March, Bird reported strong fourth-quarter and full-year 2024 results. The company’s total revenue for the year rose 21% YoY (year-over-year) to $3.4 billion. Similarly, its adjusted annual earnings rose 44% YoY to $111.3 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 53% from a year ago to $212.8 million. A mix of organic growth and smart acquisitions, like Jacob Bros and NorCan, helped expand Bird’s capabilities and reach in recent quarters — boosting its financial growth.
Even more impressive, Bird’s adjusted EBITDA margin climbed to 6.3% in 2024, reflecting a 1.3% expansion from the year before with the help of better contract structures and strong execution. It also ended the year with $3.7 billion in backlog and nearly $900 million in pending recurring revenue.
With a healthy balance sheet, growing cash flows, and a clear focus on long-term contracts, BDT stock has the potential to continue delivering dependable monthly income for years to come and shield your portfolio through uncertain times.
SmartCentres REIT stock
SmartCentres Real Estate Investment Trust (TSX:SRU.UN), one of Canada’s biggest names in retail and mixed-use real estate, could be another great option for monthly income. This Vaughan-headquartered company owns 195 properties across the country, including shopping centres, office buildings, and self-storage facilities. And many of its locations are anchored by large businesses like Walmart and Canadian Tire.
After rising 10% over the last year, SmartCentres stock currently trades at $24.18 with a market cap of about $4.4 billion and offers a monthly dividend with an attractive 7.1% annualized yield.
The REIT’s net rental income for 2024 rose 6.6% YoY to $547.5 million, supported by new leases, strong occupancy, and rising rental rates. Meanwhile, its adjusted funds from operations also climbed to nearly $360 million for the year. Similarly, SmartCentres REIT’s occupancy hit a strong 98.7% while its same-property net operating income rose 3.8% in the fourth quarter of the year.
Moreover, SmartCentres’s growth pipeline looks strong. From condo developments and purpose-built rentals to new self-storage projects, it’s consistently focusing on expansion, making it a compelling pick for monthly income seekers.
