Looking for reliable monthly income from your investments? This guide explores the top Canadian monthly dividend stocks that can provide consistent cash flow to your portfolio in February 2025.
What are Monthly Dividend Stocks?
Monthly dividend stocks are companies that pay dividends to shareholders every month instead of quarterly. These investments can provide more frequent income and help with regular expense planning.
Best Monthly Dividend Stocks in Canada This Month (February 2025)
1. Realty Income (O)
Known as "The Monthly Dividend Company," Realty Income stands out with its impressive track record and stable business model.
- Dividend Yield: 5.8%
- Dividend Streak: 56 years of uninterrupted payments
- Portfolio: Over 15,000 properties across diverse industries
2. Morguard North American Residential REIT (MRG.UN)
Morguard offers compelling value with its monthly dividend structure and growth potential.
- Dividend Yield: 4.4%
- Recent Dividend Increase: Late 2024
- Forward P/FFO Ratio: 9.95
Strong Quarterly Dividend Alternatives
3. Fortis Inc. (FTS)
A utility giant with an exceptional dividend growth history.
- Dividend Yield: 4.05%
- Dividend Growth Streak: 51 years
- Growth Outlook: 4-6% annual through 2029
4. Canadian Utilities (CU)
Canada's dividend aristocrat leader with the longest consecutive increase streak.
- Dividend Yield: Over 5%
- Dividend Growth Streak: 52 years
- Sector: Utilities
5. TC Energy (TRP)
A energy infrastructure company with consistent dividend growth.
- Dividend Yield: 5.8%
- Dividend CAGR: 7% since 2000
- Future Growth: 3-5% projected annually
Summary of Best Monthly and Quarterly Dividend Stocks (February 2025)
| Stock | Ticker | Yield | Payment Frequency |
|---|---|---|---|
| Realty Income | O | 5.8% | Monthly |
| Morguard REIT | MRG.UN | 4.4% | Monthly |
| Fortis | FTS | 4.05% | Quarterly |
| Canadian Utilities | CU | 5.0% | Quarterly |
| TC Energy | TRP | 5.8% | Quarterly |
Final Words
Monthly dividend stocks can provide reliable income streams for investors seeking regular cash flow. While companies like Realty Income and Morguard offer attractive monthly payments, don't overlook strong quarterly dividend payers that might offer better total returns. Always consider factors like dividend safety, growth potential, and overall business fundamentals when making investment decisions.
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Frequently Asked Questions About Monthly Dividend Stocks
Are monthly dividend stocks better than quarterly dividend stocks?
Monthly dividend stocks aren't necessarily better than quarterly ones. While they provide more frequent income, the total annual return and dividend sustainability are more important factors to consider than payment frequency.
What is the average yield for monthly dividend stocks in Canada?
Monthly dividend stocks in Canada typically offer yields ranging from 4% to 6%. However, yields can vary significantly based on market conditions, sector, and company-specific factors.
How stable are monthly dividend payments?
Monthly dividend stability depends on the company's business model and financial health. REITs and utility companies often provide more stable monthly dividends due to their consistent cash flows and regulated business environments.
