Investors can earn a stable passive income by investing in stocks that pay monthly payouts. Here are three monthly-paying dividend stocks that offer high yields and trade at attractive valuations.

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties (TSX:NWH.UN) owns and operates 210 properties across seven countries, with a gross leasable area of 17.4 million square feet. After two challenging years amid high interest rates and increased leverage, the company has witnessed healthy buying over the last few months. Its stock price has risen by around 30% compared to its 52-week low. Despite the recent buying, its valuation still looks attractive, with its NTM (next 12 months) enterprise value-to-EBITDA (earnings before interest, tax, depreciation, and amortization) multiple at 18.3.

Meanwhile, NWH continues to enjoy a healthy occupancy and collection rate due to its defensive healthcare asset base, high-quality tenant base, and long-term lease agreements, thus generating stable and predictable cash flows. Besides, it has divested several non-core assets, generating $566.5 million. The company has utilized these net proceeds to pay off high-cost-bearing debts, strengthening its balance sheet. Further, the company has a healthy developmental strategy and focuses on the next-gen assets to deliver long-term earnings growth for its shareholders.

Given its solid underlying business, improving balance sheet, and high growth prospects, NWH is well-positioned to continue rewarding its shareholders with healthy dividends. It currently offers a healthy forward dividend yield of 7.1%, thus making it an ideal buy for income-seeking investors.

Extendicare

Extendicare (TSX:EXE) offers Canadian seniors long-term care (LTC) and home care under various brands. It operates 123 long-term care homes, 52 owned and 71 under management contracts, and provides 10.2 million hours of home care annually. The companyâs operating metrics are improving, with the average occupancy rate of its LTC improving by 90 basis points to 97.5% in the March-ending quarter. Besides, its average daily volume in home healthcare grew by 11.4%

Meanwhile, the demand for Extendicareâs LTC and home care services has been rising amid the aging population. Besides, the company is expanding its asset base through a joint venture, which would redevelop five LTC projects in Ontario to replace 1,121 Class C beds with 1,280 new beds. It is also working on 15 redevelopment projects in Ontario that would replace 2,211 class C beds with 3,032 new beds. Besides, the company had strengthened its financial position by divesting a 256-bed LTC redevelopment project in Orleans, Ontario, and assets of a former Class C LTC home in Sudbury. Considering its healthy growth prospects, I believe Extendicareâs future dividend payouts will be safer.

Extendicare currently pays a quarterly dividend of $0.04/share, with its forward yield at 6.6%. EXE stock trades at an attractive NTM price-to-earnings multiple of 16.6, making it an excellent buy.

Pizza Pizza Royalty

Another top monthly dividend stock available at an attractive valuation would be Pizza Pizza Royalty (TSX:PZA), which operates Pizza Pizza and Pizza 73 brand restaurants through franchisees. It collects royalties from the franchisees based on their sales, making its financials less susceptible to inflation. Besides, the company has posted positive same-store sales for 12 consecutive quarters amid menu innovations, value messaging, and promotional brand activities.

Further, the company continues its restaurant expansion initiatives and expects to raise its unit count by 3 to 4% this year. Besides, its old restaurant renovation program, food and technology innovation, and value-oriented menu offerings could continue to support its same-store sales in the coming quarters. Given its asset-light business model and healthy growth prospects, PZAâs future dividend payouts will be safer. PZA currently offers a forward dividend yield of 7% and trades at 13.1 times its projected earnings for the next four quarters.   Â

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