The 4 best stocks with monthly dividends

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While the TSX has many stocks that pay dividends, a few offer monthly payments. So, if you’re looking for dividend-paying stocks with a monthly payout option, consider adding these four stocks to your portfolio.

Northwestern Healthcare Properties

NorthWest Healthcare Properties REIT (TSX: NWH.UN) is a reliable monthly income stock. Its defensive real estate assets generate strong cash flow that supports its payments. Notably, the tenants supported by the government of NorthWest, the high occupancy rate, the long term of leases and the rents indexed to inflation suggest that the payments of the company are very secure.

In addition to its low risk portfolio, NorthWest’s focus on geographic expansion, the continued strength of existing markets and balance sheet optimization bode well for future growth. NorthWest stock trades inexpensively and offers a very high dividend yield of 5.9%.

Pembina pipeline

Pembina pipeline (TSX: PPL) (NYSE: PBA) has a very long history of paying regular monthly dividends. It should be noted that this energy infrastructure company has been paying dividends for more than two decades. Plus, its dividends have a CAGR of around 5% over the past decade.

The Pembina pipeline is expected to generate strong profits with the economic reopening, improved volumes and rising commodity prices. Its heavily contracted operations generate resilient commission-based cash flows that support higher dividend payments. In addition, strong order books and new growth plans bode well for future growth.

Pembina stock is also trading cheaper than its peers. Its next 12-month EV / EBITDA multiple of 10.1 and price-to-earnings ratio of 15.2 compare favorably to its peers. In addition to its low valuation, the Pembina share offers an exceptional dividend yield of 6.5%.

Renewable energies TransAlta

Renewable energies TransAlta (TSX: RNW) is another reliable stock for generating stable monthly dividend income. Its diversified assets, heavily contracted portfolio, and long lifespan (around 12 years) help the company generate strong cash flow that drives its payments.

TransAlta’s cash available for distribution has increased steadily over time. In addition, its dividends have a 3% CAGR since 2013. With its low risk operations and resilient and growing distributable cash flow, I expect TransAlta Renewables to increase shareholder returns through constant dividend payments.

In addition, TransAlta Renewables’ strong 5% dividend yield makes it attractive in a low interest rate environment.


AltaGas The stock (TSX: ALA) has seen strong buys over the past year, reflected in its price growth of 52.5%. In addition to the appreciation in stock prices, AltaGas has boosted shareholder returns through increased dividend payments.

Notably, AltaGas benefits from its balanced portfolio of low-risk utility assets and fast-growing intermediary businesses. Its high-quality utility assets generate strong cash flow that supports its dividend payments. The company predicts that its rate base will increase at an 8-10% CAGR through 2026, which will likely boost its earnings base and, in turn, support higher dividend payouts.

In addition, improving energy demand and increasing global exports will continue to boost its intermediary business and, in turn, support its profit growth. AltaGas expects global export volumes to increase at a 10% CAGR through 2026, which is encouraging.

With the increased visibility into its future earnings, AltaGas expects its dividends to increase at a 5-7% CAGR over the next five years. At the same time, it offers an attractive dividend yield of 3.7%.

About Warren Dockery

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