Dividends are a tax-efficient source of investment income, and in today's low-interest-rate environment, the best monthly dividend stocks in Canada outperform savings accounts. While the majority of dividend stocks on the TSX make quarterly distributions, a few make monthly payments. Monthly dividend stocks are appealing as a source of consistent income that you can count on without putting in any extra effort. Ideally, the stocks will also rise in value over time, resulting in capital gains when you decide to sell them.
I've covered some of the best-paying, monthly dividend stocks you can use to generate cash every month in the section below.
$AW.UN A&W Revenue Royalties Income Fund
A&W Trade Marks Inc. controls the A&W trademarks used in the A&W quick service restaurant business in Canada through its ownership interest in A&W Trade Marks Limited Partnership. A&W Revenue Royalties Income Fund is a limited-purpose trust created to invest in A&W Trade Marks Inc. A&W restaurants now number about 854, of which nearly 845 are franchised and nine are owned and run corporately thanks to the company's opening of about 32 new locations. In addition to acting as a franchisor of hamburger quick-service restaurants in Canada, it has given A&W Food Services of Canada Inc. a license to use the A&W trademarks to promote Root Beer in cans and bottles to the retail grocery trade.
$SRU.UN SmartCentres Real Estate Investment Trust
A fully integrated Canadian commercial and residential REIT, SmartCentres Real Estate Investment Trust has over 174 carefully chosen properties spread out across the nation. On its current retail assets, the company is creating fully integrated, mixed-use communities under the wholly-owned residential sub-brand SmartLiving.
$EIF Exchange Income Corporation
A diverse acquisition-oriented company, Exchange Income Corp. is concentrated on opportunities in the industrial and aerospace industries. The corporation's business model calls for investments in successful, well-established businesses with healthy cash flows that operate in specialized areas. It's Aerospace and Aviation segment, which is a major source of revenue, derives income from the supply of transportation services, from the sale or lease of aircraft, and from the sale of aftermarket components. Sales of manufacturing-related goods and services generate revenue for the manufacturing segment.
$FCMI Fidelity Canadian Monthly High-Income ETF
The fund uses an asset allocation strategy in order to generate a consistent income stream with the possibility of capital gains. It mostly invests in underlying funds. These underlying funds typically invest in a variety of domestic and international fixed-income and equities securities, with a focus primarily on Canadian stock and fixed-income securities.
According to a recent RBC research, the average Canadian household's overall purchasing power may decrease by $3,000 by 2023. A general increase in prices and interest rates will probably be the cause of this. According to the same estimate, Canada will see an economic downturn as early as the first quarter of 2023.
You can be in for a rough ride if you have stock market investments. During a recession, stock prices typically decline. As corporations report lower results, investors frequently lose faith in their investments, and many people withdraw their money from the market out of concern about steep losses.
Conclusion
Is it a smart idea to invest during a recession?
Dollar-cost averaging is an excellent strategy to utilize during recessions since it allows you to buy shares when the price falls. With new funds, you can dollar cost average, or you can get the same result by having your dividends automatically reinvest in the security.
Questrade is Canada's largest independent brokerage platform, managing more than $25 billion in assets. When you buy ETFs, you pay no fees, and when you buy dividend stocks, you pay competitively low fees.
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