Canada’s Best Monthly Dividend Stocks and REITs for December 2024
If you’re looking for monthly dividend stocks here in Canada, you won’t need to look further than this list.
First things first, we’re going to go over some of the best monthly dividend-paying stocks in Canada. After that, we’re going to go over all of the monthly dividend stocks in Canada. And finally, we’re going to discuss whether or not monthly dividend stocks are more beneficial than quarterly payers.
Of note, if you want to access our in-depth research on each company, simply click their ticker in the table.
What are the best monthly dividend paying stocks?
- Savaria (TSX:SIS)
- First National Financial (TSX:FN)
- Northland Power (TSX:NPI)
- Whitecap Resources (TSE:WCP)
Savaria (TSX:SIS)
Savaria (TSX:SIS) is expected to post impressive growth numbers in an industry that is still relatively young yet growing extremely fast. Savaria is involved in manufacturing mobility products and modifications, such as stairlifts, elevators, and wheelchair conversion kits for vehicles.
It is a small-cap stock with a market capitalization of just over $1B at the time of writing.
The population is getting older here in Canada, and it is estimated that in the next 10 years, Canadians over 65 will increase by 50%. Savaria is a market leader in Canada and is in a great position to benefit from this.
Savaria has a modest dividend yield, but its growth is impressive. From 2017 to 2023, it increased its annual dividend from $0.32 to $0.52 per share, a compound annual growth rate of just under 9%. We’ll note, however, that dividend growth has slowed recently, with the payout increasing just $0.03 from 2021 through 2023.
The decrease in dividend growth was largely because of the Handicare acquisition, a deal that substantially transformed the company but increased its total debt. Now that some of the debt has been repaid and the balance sheet has improved, we believe dividend growth could increase.
The company is a Canadian Dividend Aristocrat with a dividend growth streak of 10 years. The last time we updated this article, Savaria was paying out over 200% of its earnings towards the dividend, and we cautioned investors that this payout ratio was highly misleading due to some one-off costs.
Acquisition costs and other one-time issues should be behind them now, and we have seen those payout ratios decline. It is now paying out 81% of its earnings and 45% of its free cash flow towards the dividend. I expect that these will decline even further.
Sales are expected to increase by approximately 7% in 2024, with EBITDA increasing by about 15%. Analysts expect an even bigger jump in adjusted earnings, which are projected to increase by 32% compared to 2023’s numbers.
Savaria combines everything a long-term income investor wants in a dividend-paying stock. A monthly dividend that’s growing at a steady pace, a strong track record of dividend payments, and a company that has a growing but stable cash flow.
First National Financial (TSX:FN)
First National Financial Corporation (TSX:FN) has quietly become one of the best monthly dividend stocks in Canada.
The company operates in the financial services sector, specifically in mortgages. It is one of Canada’s largest non-bank lenders, working exclusively with mortgage brokers to underwrite both residential and commercial mortgages.
It has more than 300,000 residential and commercial clients with more than $135B in mortgages under administration. This has a few different advantages for borrowers.
First National has a low-cost model, operating just a few offices across the country. This is much more efficient than the hundreds of branches the major banks have, which translates into much lower borrowing costs and savings it passes onto its customers.
Mortgage brokers also do the hard work of prequalifying each potential loan, meaning First National doesn’t waste any time with unqualified borrowers.
The company makes money on each loan. It also services mortgages for various institutional money managers who want exposure to the stable Canadian mortgage market. The latter ensures consistent earnings even if the overall real estate market is slow like we saw in 2023 when interest rates exploded higher in Canada.
First National also keeps very few mortgages on its balance sheet, meaning its exposure to the underlying loans is quite manageable if the housing bears are right and Canada’s real estate bubble pops.
The company has paid consistent monthly dividends since its debut on the Toronto Stock Exchange back in 2006. In fact, the payout has gone up pretty consistently over time, rising 16 times between 2006 and today.
It offers one of the best yields in the monthly Canadian dividend stocks universe, with the current payout just above 6%. And, if that’s not enough, the company also pays semi-regular special dividends, including $0.75 per share in 2023 and $1.25 per share in 2021.
Northland Power (TSX:NPI)
Northland Power (TSX:NPI) is a rare pure-play renewable energy company that pays a monthly dividend.
The company has been in operation for a considerable time when you consider that it is a renewable energy stock, as it was founded in 1987. More and more Canadian investors are catching on to the renewable wave, and stocks like Northland stand to benefit significantly.
Northland owns assets that are primarily located in Eastern Canada. However, it also has operations in the western part of the country, in Colombia, and in various parts of Europe. The company’s expansion program will see it expand further outside of North America, with additional projects planned in Europe and Asia.
As a utility company, it faced some headwinds in 2023 as interest rates rose. However, this isn’t unique to Northland Power but to all utility companies. Its share price has taken a large hit as of late, and we view it as an opportunity to add an outstanding renewable player if you’re looking for one.
Utility companies are cash-intensive businesses, often requiring debt to expand infrastructure. So, rising rates have no doubt impacted Northland Power. However, the company is still in an excellent position to thrive.
The stock pays a respectable dividend in the 5% range, a $0.10 monthly dividend. The company’s payout ratio has moved considerably higher as of late as it spends more of its capital to get the aforementioned expansion projects online, but we don’t see any short-term danger to the dividend.
Investors should note that Northland hasn’t raised the dividend in a few years now, but we remain confident in its ability to execute its growth plans, which should lead to increased dividends in the future.
Whitecap Resources (TSE:WCP)
Since coming out of lockdowns due to the pandemic, the oil and gas sector has witnessed a massive resurgence in popularity, primarily due to the fact crude oil has surged in price.
Many oil and gas producers, the victims of massive selloffs during the pandemic, survived and began to generate a significant amount of cash flow relative to their valuations.
As a result, many producers, primarily junior-level producers like Whitecap Resources, saw 10-bagger-like returns in just a few years.
Because of its significant cash flow, Whitecap is perfect for those looking for a monthly dividend.
Whitecap Resources Inc (TSE:WCP) is engaged in acquiring, developing, and holding interests in petroleum, natural gas, and natural gas liquids. The company acquires assets with discovered petroleum initially in place and low current recovery factors.
Light oil is the primary byproduct of its Western Canada assets. The company uses horizontal drilling and multistage fracturing technology to extract petroleum products from its resources.
The stock currently has a market cap of just over $5.8B, making it a larger, mid-tier producer and one that should be added to a monthly income seeker watchlist today.
Whitecap plans to spend just over $1B in capital programs in 2024, which should increase its production by about 5%. It also recently increased its dividend by 26%, suggesting to investors the payout is safe even amid all the uncertainty in the energy market.
Let’s look at all of Canada’s monthly payers
Next, we’ll look at all of the companies that pay monthly dividends here in Canada. If we’re missing one, please shoot us an e-mail, and we’ll get it added.
Canada’s monthly dividend paying REITs and Income Trusts
| wdt_ID | Symbol | Payout Ratio | Yield |
|---|---|---|---|
| 1 | AI.TO | 78.46% | 8.54% |
| 2 | AW.UN.TO | 93.92% | 6.03% |
| 3 | BPF.UN.TO | 79.05% | 8.47% |
| 4 | BRE.TO | 952.60% | 10.58% |
| 5 | CHE.UN.TO | 24.87% | 7.43% |
| 6 | CHW.TO | 50.78% | 1.65% |
| 7 | EIF.TO | 89.10% | 5.62% |
| 8 | EXE.TO | 546.29% | 7.91% |
| 9 | FN.TO | 70.26% | 6.73% |
| 10 | FRU.TO | 100.29% | 7.35% |
| 11 | KBL.TO | 137.19% | 3.78% |
| 12 | KEG.UN.TO | 242.69% | 8.44% |
| 13 | MTL.TO | 39.53% | 5.37% |
| 14 | NPI.TO | 48.52% | 5.42% |
| 15 | PEY.TO | 45.20% | 9.64% |
| 16 | PZA.TO | 101.23% | 6.51% |
| 17 | RNW.TO | 321.79% | 7.65% |
| 18 | RPI.UN.TO | 47.06% | 4.04% |
| 19 | SIA.TO | -195028.57% | 8.76% |
| 20 | SIS.TO | 90.48% | 3.66% |
| 21 | TF.TO | 82.27% | 10.21% |
| 22 | WCP.TO | 28.66% | 5.05% |
| wdt_ID | Symbol | Payout Ratio (FFO) | Yield |
|---|---|---|---|
| 1 | AP.UN.TO | 77.00% | 10.04% |
| 2 | APR.UN.TO | 83.40% | 7.69% |
| 3 | AX.UN.TO | 51.70% | 9.29% |
| 4 | BEI.UN.TO | 34.00% | 1.75% |
| 5 | BTB.UN.TO | 63.90% | 10.03% |
| 6 | CAR.UN.TO | 62.50% | 3.22% |
| 7 | CHP.UN.TO | 74.00% | 5.91% |
| 8 | CRR.UN.TO | 80.60% | 7.13% |
| 9 | CRT.UN.TO | 66.67% | 6.56% |
| 10 | CSH.UN.TO | 115.47% | 5.95% |
| 11 | D.UN.TO | 70.40% | 10.36% |
| 12 | DIR.UN.TO | 71.40% | 5.45% |
| 13 | ERE.UN.TO | 73.90% | 7.11% |
| 14 | FCA.UN.V | N/A | - |
| 15 | FCR.UN.TO | 78.60% | 6.50% |
| 16 | GRT.UN.TO | 65.00% | 4.44% |
| 17 | HOM.UN.TO | 56.10% | 4.31% |
| 18 | HOT.UN.TO | 33.90% | 14.21% |
| 19 | HR.UN.TO | 49.50% | 6.50% |
| 20 | IIP.UN.TO | 68.16% | 2.88% |
| 21 | INO.UN.TO | 57.40% | 13.89% |
| 22 | KMP.UN.TO | 63.53% | 4.02% |
| 23 | MHC.U.TO | 46.90% | 3.74% |
| 24 | MI.UN.TO | 62.60% | 3.59% |
| 25 | MR.UN.TO | 25.50% | 10.55% |
| 26 | MRG.UN.TO | 44.20% | 4.85% |
| 27 | MRT.UN.TO | 28.50% | 4.44% |
| 28 | NET.UN.V | 54.40% | 7.28% |
| 29 | NWH.UN.TO | 137.00% | 15.75% |
| 30 | NXR.UN.TO | 83.55% | 8.90% |
| 31 | PLZ.UN.TO | 75.80% | 7.76% |
| 32 | PMZ.UN.TO | 51.90% | 6.08% |
| 33 | PRV.UN.TO | 113.00% | 10.51% |
| 34 | REI.UN.TO | 59.70% | 5.98% |
| 35 | SGR.UN.TO | 79.30% | 10.50% |
| 36 | SOT.UN.TO | 100.00% | 9.16% |
| 37 | SRU.UN.TO | 88.10% | 8.13% |
| 38 | TNT.UN.TO | 87.30% | 13.88% |
Are monthly dividend stocks a good investment?
There are valid reasons for owning monthly dividend stocks. For one, they make dividend payments on a more frequent basis.
Suppose you’re looking for more stable cash flows during retirement. In that case, if you’re looking to live solely off the dividend payments and not touch the principle of your investment portfolio, blue-chip Canadian stocks that pay monthly dividends are an excellent option.
Secondly, you make a marginal amount extra with monthly dividend payments.
This is because instead of waiting every quarter for a dividend payment, you get one every month and can re-invest those cash flows into more dividend growth companies, especially with the emergence of fractional shares and commission-free trading.
However, let’s be very clear about one thing
We’re advocating for monthly dividend stocks, not mutual funds and income funds that pay monthly distributions. Let’s use a very popular example: a Canadian banking ETF, BMO Equal Weight Banking Index ETF (TSX:ZEB).
This basic ETF charges a 0.25% management expense ratio and contains 6 stocks, Canada’s 6 most prominent banks. All Canadian banks pay quarterly dividends, but the fund pays monthly dividends.
So, investors who are just learning how to invest naturally gravitate to the ETF for its monthly dividend. However, it comes at a cost.
Over the long term, shareholders paying that 0.25% expense ratio are going to lose out on returns. That’s $25 for every $10,000 invested.
Considering you could buy all 6 stocks through a brokerage like Qtrade for $30 in commission or even for free through Wealthsimple Trade, this is a significant jump.
Monthly dividend stocks aren’t very common on the TSX
This may not be all of the monthly dividend payers here in Canada. Still, they’re the ones we’d recommend looking at, especially for new investors looking to learn how to buy stocks.
From small-cap to large-cap stocks, if you’ve got a stock that pays monthly dividends that you’d like to be added to the list, feel free to shoot us an e-mail, and we’ll look to add it.
Along with all the monthly dividend payers, we’ve also decided to include Canadian REITs and Income Trusts. They are another way to earn a strong monthly income.
Those looking for monthly dividend income may be interested in investing in a real estate investment trust or income trust, which provides just that.