Canada’s Best Monthly Dividend Stocks and REITs for March 2025

ByDan Kent Published On:

Key takeaways

Monthly dividends offer steady income – Unlike quarterly payers, monthly dividend stocks provide more frequent cash flow, making them ideal for income-focused investors, retirees, or those reinvesting for compounding gains.

Diversification across industries is key – The best monthly dividend stocks span different sectors, from renewable energy (Northland Power) to financial services (First National) and energy (Whitecap Resources), reducing risk while maintaining income stability.

Sustainability of dividends matters – High yields can be tempting, but investors should focus on companies with strong cash flow, low payout ratios, and stable business models to ensure long-term dividend reliability.

3 stocks I like better than the ones on this list.

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?

Accessibility and mobility solutions

Savaria (TSX:SIS)

Savaria is a leader in the accessibility space, specializing in stairlifts, wheelchair lifts, and home elevators. The company operates in North America and Europe, helping people with mobility challenges improve their quality of life. With an aging population and a growing demand for accessibility solutions, Savaria is positioned for steady long-term growth.

P/E: 28.9

5 Yr Revenue Growth: 24.0%

5 Yr Earnings Growth: 7.3%

5 Yr Dividend Growth: 10.2%

Yield: 2.8%

  • Provides essential mobility products in a growing market
  • Strong recurring revenue from service and maintenance contracts
  • Expanding global presence, particularly in Europe
  • Benefiting from aging population trends
  • Solid dividend history with a sustainable payout ratio
  • Low competition in niche markets helps protect margins
  • Aging Population – More seniors mean rising demand for home mobility solutions
  • Expansion in Europe – Growth in international markets could drive revenues higher
  • Supply Chain Efficiency – Managing costs and inventory is key to maintaining profitability
  • Technology Integration – Innovations in automation and smart home features could enhance product offerings
  • Economic Sensitivity – Demand for home elevators and lifts may decline in economic downturns
  • Competition from New Entrants – Emerging players could put pressure on pricing
  • Currency Fluctuations – International operations expose Savaria to forex risk
  • Supply Chain Challenges – Disruptions could impact manufacturing costs and delivery timelines

Canada’s largest non-bank mortgage lender

First National Financial (TSX:FN)

First National provides residential and commercial mortgages across Canada, offering an alternative to the big banks. The company generates income from mortgage servicing fees and securitization, making it a steady cash-flow business. Since it doesn’t take on deposit risk like traditional banks, it operates with lower capital requirements.

P/E: 13.4

5 Yr Revenue Growth: 9.4%

5 Yr Earnings Growth: 8.7%

5 Yr Dividend Growth: 5.3%

Yield: 6.1%

  • Stable revenue from mortgage servicing and underwriting
  • Benefits from Canada’s strong housing market and high home prices
  • Lower regulatory burden compared to major banks
  • Conservative loan underwriting helps maintain credit quality
  • Strong history of dividend growth with a reliable monthly payout
  • Efficient business model with high operating margins
  • Interest Rate Environment – Higher rates could impact mortgage growth and renewals
  • Housing Market Stability – Any major downturn in real estate could affect earnings
  • Regulatory Changes – Government policies on mortgage lending could influence business growth
  • Technology and Automation – Investments in digital mortgage services could improve efficiency and competitiveness
  • Housing Market Slowdown – A major real estate correction could hurt loan originations
  • Interest Rate Sensitivity – Rising rates could dampen mortgage demand and margins
  • Competition from Banks – Larger financial institutions may offer aggressive mortgage pricing
  • Credit Risk – A surge in defaults could impact financial performance

Renewable energy producer

Northland Power (TSX:NPI)

Northland Power is one of Canada’s leading independent power producers, with a focus on renewable energy. The company operates offshore wind farms, solar projects, and natural gas facilities across Canada, Europe, and Asia. As the world transitions to cleaner energy, Northland is well-positioned to benefit from this global shift.

P/E: –

5 Yr Revenue Growth: 7.5%

5 Yr Earnings Growth: -%

5 Yr Dividend Growth: -%

Yield: 7.1%

  • Strong cash flow from long-term power purchase agreements (PPAs)
  • Growing offshore wind presence in Europe and Asia
  • Positioned to capitalize on global renewable energy demand
  • Predictable revenue stream from regulated energy markets
  • Strong ESG profile attracts institutional investors
  • Consistent dividend payer with sustainable cash flow generation
  • Global Renewable Energy Demand – Increasing investment in green energy supports Northland’s growth
  • Expansion into Asia – The company’s push into Asian markets could drive long-term gains
  • Government Policies – Renewable energy subsidies and regulations impact profitability
  • Technological Advancements – Innovations in wind and solar technology could improve efficiency and margins
  • Regulatory Uncertainty – Policy changes could impact renewable energy subsidies
  • Project Delays – Large-scale energy projects often face permitting and construction risks
  • Interest Rate Impact – Higher rates could affect project financing costs
  • Commodity Price Exposure – Energy pricing fluctuations may influence profitability

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Oil and gas producer with a strong dividend focus

Whitecap Resources (TSX:WCP)

Whitecap Resources is a Canadian oil and gas exploration and production company focused on light oil assets in Western Canada. The company has a history of returning cash to shareholders, supported by strong production and disciplined capital management.

P/E: 6.6

5 Yr Revenue Growth: 20.3%

5 Yr Earnings Growth: 57.6%

5 Yr Dividend Growth: 14.2%

Yield: 7.6%

  • Strong production base with low decline rates
  • Committed to returning cash through dividends and share buybacks
  • Benefiting from strong oil prices and demand recovery
  • Efficient cost structure supports free cash flow generation
  • Expanding carbon capture projects to improve ESG appeal
  • Monthly dividend offers steady income for investors
  • Oil Price Volatility – Whitecap’s performance is closely tied to crude oil prices
  • Carbon Capture Initiatives – Investments in carbon capture could enhance its sustainability profile
  • M&A Activity – Potential acquisitions could boost production and reserves
  • Government Energy Policies – Regulations on emissions and drilling may affect operations
  • Commodity Price Swings – A drop in oil prices could reduce profitability
  • Regulatory Changes – Stricter environmental policies could impact future growth
  • Pipeline Constraints – Limited transportation capacity can affect pricing and sales
  • Geopolitical Risks – Global events can drive energy market instability

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

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.

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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.

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