2 Passive-Income Stocks to Watch in January

Having a secondary source of income is a prudent way to navigate today’s challenging economic environment, marked by persistent inflation and rising geopolitical tensions. It can enhance financial stability while helping protect purchasing power against increasing prices. At the same time, investing in monthly dividend-paying stocks offers an attractive avenue to generate reliable passive income, particularly in a low-interest-rate environment. Against this backdrop, let’s examine two top monthly-paying dividend stocks that investors can consider buying right now to earn healthy and consistent passive income.

SmartCentres Real Estate Investment Trust

Real estate investment trusts (REITs) are legally required to return at least 90% of their taxable income to unitholders, making them attractive investments for income-seeking investors. Accordingly, my first pick is SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which operates 197 strategically located mixed-use properties across Canada and benefits from a substantial and diversified tenant base. Notably, nearly 90% of Canadians live within 10 kilometres of a SmartCentres property. In addition, approximately 95% of its tenants have a regional or national presence, while about 60% provide essential services.

Supported by its prime locations and resilient tenant mix, SmartCentres maintains a healthy occupancy rate of 98.6%, which translates into strong financial performance and stable cash flows. Backed by these robust cash flows, the REIT consistently rewards unitholders with attractive dividends, yielding 6.9% based on its January 26 closing price.

Looking ahead, SmartCentres boasts a substantial development pipeline of 86.2 million square feet of mixed-use projects, with 0.8 million square feet currently under construction. The REIT is also expanding its self-storage platform, having opened three new facilities last year, bringing the total to 14. Furthermore, it plans to open two additional facilities in Quebec this year and another two in British Columbia next year, while pursuing municipal approvals for a newly acquired self-storage site in Edmonton, Alberta. These growth initiatives could further strengthen its financial performance and support future dividend payouts, making SmartCentres an excellent choice for income-focused investors.

Whitecap Resources

Another monthly dividend-paying stock that I am bullish on is Whitecap Resources (TSX:WCP), which owns and develops oil and natural gas assets across Western Canada. The company has significantly strengthened its production profile through its merger with Veren, which has also delivered meaningful cost synergies while further improving Whitecap’s balance sheet and overall financial position. As of the end of the third quarter, Whitecap reported liquidity of $1.6 billion and maintained a conservative net debt-to-annualized funds flow ratio of just 1.

Looking ahead, Whitecap plans to invest between $2 billion and $2.1 billion this year to enhance its production capabilities. These investments will focus on operational execution, disciplined capital allocation, moderate production growth, and the continued realization of merger-related synergies. Amid these initiatives, management expects average production for the year to range between 370,000 and 375,000 barrels of oil equivalent per day (boe/d), with the midpoint representing a 22.1% increase compared to 2025 guidance. In addition, the company anticipates generating approximately $3.3 billion in funds flow this year.

Supported by its strong and growing cash flows, Whitecap expects to increase total shareholder returns by 10%–15% annually. The company currently pays a monthly dividend of $0.0608 per share, yielding 6% on a forward basis. Considering its solid financial position, healthy growth outlook, attractive dividend yield, and reasonable valuation – reflected by an NTM (next 12 months) price-to-earnings multiple of 15.1 – WCP presents an excellent buying opportunity for income-focused investors.

The post 2 Passive-Income Stocks to Watch in January appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

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Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.