As the Bank of Canada continues to cut interest rates, with the benchmark rate now at 3%, investors should consider quality dividend stocks offering monthly payouts to enhance their passive income. Here are three stocks that could be strong additions to your portfolio:
Sienna Senior Living
With an aging population and rising income levels, the demand for senior services, such as independent living, assisted living, and long-term care, is on the rise. Sienna Senior Living (TSX:SIA) is a top pick in this sector. The company reported an impressive third-quarter performance, with a 12.5% increase in its topline and a 14.8% rise in adjusted net operating income. Factors such as strong occupancy rates, annual rental rate hikes, increased revenue from care services, and higher government funding contributed to its solid financial performance.
Additionally, Sienna raised approximately $295 million through new share and unsecured debenture issuances, which it plans to use for growth initiatives and refinancing. In October, it acquired four high-quality properties in Western Canada and is working to acquire the remaining 30% stake in Nicola Lodge, a 256-bed long-term care community in Port Coquitlam, British Columbia. These growth initiatives are expected to support the company’s financial expansion and future dividend payouts. Currently, Sienna offers a monthly dividend of $0.078 per share, providing a strong forward yield of 5.93%.
Whitecap Resources
Whitecap Resources (TSX:WCP) is another excellent choice for monthly dividend income, with consistent dividend growth and a strong yield. The Calgary-based oil and gas company has paid $2.2 billion in dividends since 2013 and repurchased $742 million worth of shares since 2017. Whitecap expects its 2024 production to be around 174,000 barrels of oil equivalent per day (boe/d), a 13% year-over-year increase from previous guidance.
The company plans to invest approximately $1.1 billion to $1.2 billion in 2024 to bolster its production capacity. For 2025, production is expected to increase to between 176,000 and 180,000 boe/d, representing a 2.3% growth over 2024. Whitecap’s net debt stands at $1 billion, and its debt-to-EBITDA ratio is a healthy 0.5. With strong production growth, favorable oil and gas prices, and a solid financial position, Whitecap is well-positioned to continue rewarding shareholders with dividends. The company currently offers an attractive dividend yield of 7.51%, making it a prime buy.
SmartCentres Real Estate Investment Trust
SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is another monthly dividend stock worth considering. The company owns 195 strategically located properties across major Canadian markets. In its most recent fourth-quarter report, SmartCentres posted a 6% increase in same-property net operating income. The company also leased 192,353 square feet of vacant space during the quarter, boosting its occupancy rate to 98.7%. Furthermore, it renewed and extended 91% of leases expiring in 2024, with an 8.8% rental growth.
These solid operational results were reflected in a 10.3% growth in net rental income and other revenues, which reached $141.6 million. The REIT also generated $122.12 million in cash from operating activities, a 19.5% increase from the previous year. With a strong development pipeline, including 59.1 million square feet of development permissions and nearly one million square feet under construction, SmartCentres is well-positioned for future financial growth and dividend payouts. The company offers a monthly dividend of $0.1542 per share, providing a forward dividend yield of 7.34%.
These three stocks offer solid growth potential and attractive monthly dividend payouts, making them excellent choices for investors seeking to boost their passive income in a low-interest-rate environment.
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