Investors often seek out monthly dividend stocks to provide them with a steady stream of passive income, especially as they approach retirement or rely on their savings. However, it can be challenging to find high-quality TSX stocks that pay monthly dividends, as most companies pay out their profits on a quarterly or semiannual basis. Additionally, some monthly dividend stocks may have unsustainable payout ratios or weak financial foundations, which can impact their future distributions. This is why it is crucial for investors to carefully select monthly dividend stocks to add to their portfolios.
In this article, we will highlight two ultra-high-yield monthly dividend stocks that have strong business models, solid financial performance, and promising long-term growth prospects.
Allied Properties REIT is a Toronto-based real estate investment trust that specializes in managing and developing urban office environments in Canada. By converting light industrial structures into modern office spaces in central business districts, Allied Properties REIT has created a niche that appeals to a variety of professional and creative industries. Despite a decline in its stock price over the past year, Allied Properties REIT currently offers an impressive annualized dividend yield of 10.5%. The trust reported an operating income of $78 million in the first quarter of 2024, indicating solid operational efficiency despite some setbacks. With a focus on portfolio optimization and enhancing user experiences, Allied Properties REIT is positioned as a reliable long-term monthly dividend stock.
Freehold Royalties is another high-yield dividend stock in Canada that pays monthly dividends. With a market cap of $2.1 billion, Freehold Royalties has seen its stock price rise by 4.4% over the last three months, offering an annualized dividend yield of 7.7%. In the March quarter, Freehold generated $74 million in revenue and reported funds from operations of $54 million. Despite weather impacts in North America, the company’s production remained stable, with a production mix heavily weighted towards oil and natural gas liquids. With high-quality, oil-weighted assets and a focus on new acquisitions, Freehold Royalties presents an attractive opportunity for investors looking for a monthly dividend stock with long-term growth potential.
Overall, both Allied Properties REIT and Freehold Royalties are solid options for investors seeking monthly dividend stocks with strong business models and promising growth prospects.