Many Canadians rely on side jobs to supplement their income, but these efforts often come at the cost of valuable time, energy, and work-life balance. What if there was an easier way to generate monthly cash flow, one that didn't involve long hours or added stress? If you're wondering how you can achieve this, the Canadian stock market might offer an attractive solution.
Canada is home to a variety of fundamentally strong, monthly-paying dividend stocks that could not only help you generate consistent passive income but also grow your wealth in the long run. In this article, I'll highlight two of the best Canadian dividend stocks with monthly payouts to help you start earning passive income.
Sienna Senior Living stock
Sienna Senior Living (TSX:SIA) is a Markham-based company that focuses on providing a range of living options to seniors across Canada, including long-term-care (LTC) and retirement residences. After surging by 44% so far in 2024, SIA stock currently trades at $16.50 per share with a market cap of $1.4 billion. At the current market price, it has a strong 5.6% annualized dividend yield.
One of the main factors that makes Sienna stock attractive is its improving financial performance in 2024 with a promising growth trajectory. In the most recent report quarter ended in September, the company marked its seventh consecutive quarter of YoY (year-over-year) growth in its adjusted same-property net operating income (NOI). During the quarter, its same property NOI jumped 14.7% YoY to $43.4 million.
This growth was mainly driven by higher occupancy rates and rental rate hikes in its retirement segment, as well as enhanced government funding in its LTC segment. After facing pandemic-driven operational and economic challenges in the last few years, Sienna has clearly bounced back strongly.
The fast-growing population of seniors in Canada continues to act as a major long-term growth driver for Sienna Senior Living, which is preparing itself to meet the rising demand, making its stock a great choice for monthly passive-income seekers.
Whitecap Resources stock
Whitecap Resources (TSX:WCP) could be another reliable Canadian monthly dividend stock to consider for long-term investors. This Winnipeg-based firm mainly focuses on acquiring and managing oil and gas assets across Canada and has established itself as a key player in the energy sector.
It currently has a market cap of $2.7 billion as its stock trades at $55.45 per share after climbing by 23% year-to-date. WCP stock offers a 4.7% annualized dividend yield at the current price.
In 2024, Whitecap is continuing to exceed its production guidance. In the first nine months of the year, the company's production averaged 173,424 barrels of oil equivalent per day, not only reflecting a 13.3% YoY increase but also exceeding its own forecasts. Higher-than-expected output from its oil-weighted and condensate-rich assets helped it achieve this milestone.
Encouraged by these strong results, Whitecap recently increased its full-year production guidance for the third time in 2024. Moreover, its consistently strengthening balance sheet, focus on unconventional asset development, and conventional programs make it an attractive long-term bet for investors seeking monthly income.