Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

2 Canadian Dividend Stocks That Cut You a Cheque Each Month

Stock MarketsSep 27, 2021 14:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2 Canadian Dividend Stocks That Cut You a Cheque Each Month

There is hardly any better feeling than receiving passive income, which is why dividend investing is one of the most popular strategies there is. Most Canadian dividend stocks, though, pay investors each quarter.

If you are looking to build passive income and want that money sooner so that you can begin to compound it, you might want to consider buying stocks that pay dividends each month. Receiving that money even sooner allows you to find other stocks and put your capital to work faster, which will ultimately help you to compound and grow your money even quicker.

So, if you’re looking for a high-quality Canadian dividend stock that pays you each month, here are two of the best to consider today.

A top restaurant royalty stock If you’re a dividend investor, one of the best stocks in Canada to consider is Pizza Pizza Royalty (TSX:PZA). Pizza Pizza royalty is an attractive company that’s designed specifically for dividend investors.

The company earns a royalty on all the sales that each of its restaurants across Canada does. It then pays 1% or 2% in administrative fees, resulting in an operating margin that’s consistently 98% or better. All that’s left is to pay tax and then essentially return the rest of the cash to investors.

The makeup of its business is perfect for investors looking to buy an investment that will pay them an attractive amount of passive income.

Because the Canadian dividend stock receives a royalty on sales from hundreds of restaurants across the country, the level of sales and, therefore, dividend income is very consistent.

Of course, the unprecedented nature of the pandemic impacted Pizza Pizza, but as it’s recovered, it continues to offer some of the best opportunities, much like it did before the pandemic.

Plus, as is evidenced by its recent increase in its dividend, the stock continues to see a recovery in its sales.

So, if you’re looking for a top dividend stock that currently yields 6.25% and pays you every month, Pizza Pizza is an ideal choice.

One of the best Canadian dividend stocks to buy today Freehold Royalties (TSX:FRU) is another high-quality Canadian dividend stock that pays you every month. Much like Pizza Pizza, the fact that it’s a royalty stock gives it a tonne of unique advantages and makes it a perfect company for dividend investors.

Freehold is attractive because the stock has so much upside potential, especially these days, as the energy industry, and producers specifically, have been rallying so rapidly.

But because Freehold doesn’t necessarily produce the energy itself, and instead receives a royalty from the companies that produce on its land, the stock is much more resilient, making it a better long-term investment.

Already this year, the Canadian dividend stock has gained over 100%. Yet, at this price, the dividend still yields an impressive 5.9%. This is thanks to the massive increase in revenue Freehold has seen over the last 12 months, which has resulted in the company increasing the monthly dividend on four separate occasions.

And going forward, Freehold continues to offer a tonne of growth potential. Just this month, it announced another acquisition that should only add to the massive amount of cash flow the dividend stock can generate.

So, if you’re looking for a high-quality Canadian dividend stock that pays you monthly, Freehold is a top buy.

The post 2 Canadian Dividend Stocks That Cut You a Cheque Each Month appeared first on The Motley Fool Canada.

Fool contributor Daniel Da Costa owns shares of FREEHOLD ROYALTIES LTD. The Motley Fool owns shares of and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends FREEHOLD ROYALTIES LTD.

This Article Was First Published on The Motley Fool

2 Canadian Dividend Stocks That Cut You a Cheque Each Month
 

Related Articles

5 Dividend Aristocrats Perfect for Down Markets
5 Dividend Aristocrats Perfect for Down Markets By The Motley Fool - Oct 24, 2021

Looking for solid stocks to buy in a down market? If so, Dividend Aristocrats are just what the doctor ordered. A Dividend Aristocrat is a stock that has not only paid, but also...

TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022
TFSA Pension: 2 Top TSX Stocks to Buy Now for 2022 By The Motley Fool - Oct 24, 2021

Tax-Free Savings Account (TFSA) investors are looking for attractive stocks to buy for their self-directed retirement accounts heading into 2022. The winners next year could be...

The Best Bank Stock for 2022
The Best Bank Stock for 2022 By The Motley Fool - Oct 24, 2021

The Canadian banking sector has always been fertile ground for steady returns. Banks here are well-diversified, exposed to a real estate sector that’s been booming for three...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email