With the Bank of Canada recently lowering its benchmark interest rate to 2.5%, and analysts expecting at least one more rate cut this year, income-seeking investors should consider dividend-paying stocks that offer reliable monthly payouts. These types of investments can be an excellent way to generate consistent cash flow, especially in a lower-rate environment. Here are three top Canadian stocks currently offering attractive monthly dividends.
- SmartCentres Real Estate Investment Trust (TSX:SRU.UN)
Dividend Yield: ~7%
SmartCentres REIT is a leading Canadian real estate investment trust with a strong focus on retail and mixed-use properties. With 197 strategically located properties and a high-quality tenant base, the REIT continues to maintain an impressive occupancy rate of 98.6%, as reported in its second-quarter results.
The company renewed or finalized 82.1% of leases expiring this year, achieving a healthy 8.5% rental growth. Retail space demand is rising due to population growth and limited new construction, and SmartCentres is capitalizing on this by actively expanding its footprint. The REIT holds approvals for approximately 58.9 million square feet of development, with 0.8 million square feet currently under construction.
Recent openings include two self-storage facilities in Toronto and one in Dorval, with additional facilities underway in Montreal and Laval. These growth projects, along with solid lease renewals, position SmartCentres to maintain and potentially grow its already strong monthly dividend.
Also Read: Reliable TSX dividend stocks 2025
- Whitecap Resources (TSX:WCP)
Dividend Yield: ~6.5%
Next on the list is Whitecap Resources, a Canadian oil and gas producer offering a monthly dividend with a generous yield. Following its recent merger with Veren, Whitecap has become Canada’s seventh-largest energy producer, significantly boosting its production capabilities and improving its balance sheet.
The integration of Veren’s assets has already led to early synergies, such as cost savings and improved capital efficiency, with more expected in the coming 6 to 12 months. Whitecap plans to invest $1.2 billion in the second half of the year, focusing on enhancing production and operational efficiency.
Management is also targeting long-term organic production growth of 3–5%, supported by a well-diversified portfolio and strong liquidity. These factors suggest Whitecap is well-positioned to maintain its monthly dividend—even through potential commodity price fluctuations.
Also Read: Dividend paying stocks Canada
- Pizza Pizza Royalty Corp. (TSX:PZA)
Dividend Yield: ~6.1%
Pizza Pizza Royalty offers a unique income opportunity among Canadian dividend stocks. The company collects royalties from a franchise network of 694 Pizza Pizza and 100 Pizza 73 locations. Since it earns income based on top-line sales, it’s relatively insulated from volatile input costs like wages and food prices.
The company strives to return all available cash to shareholders, though it maintains reserves to smooth out payments during slower seasonal periods. Despite challenges in the quick-service restaurant sector, Pizza Pizza reported same-store sales growth of 2.1% in Q2, driven by menu innovation and high-profile sports partnerships.
PZA is also actively expanding its footprint, aiming to grow its store count by 2–3% this year. Its ongoing renovation program is expected to enhance customer experience and support future sales growth—further solidifying the sustainability of its monthly dividend.
Final Thoughts
In today’s declining interest rate environment, dependable monthly income is more valuable than ever. SmartCentres REIT, Whitecap Resources, and Pizza Pizza Royalty each offer compelling dividend yields and stable business models, making them attractive additions for income-focused portfolios.
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