A 5.9% Dividend Stock Paying Out Monthly Cash

Monthly dividend stocks can make investing feel a little more rewarding. Instead of waiting every three months, investors get a steadier stream of cash that can be reinvested faster or used to help cover regular expenses. That may not automatically make a monthly payer better than a quarterly one, but it can make income planning a lot easier. For investors who like consistency, that rhythm can be a real plus. If you’re a Canadian income investor looking for a monthly payer with a recognizable brand behind it, here’s one worth considering on the TSX today.

Boston Pizza Royalties Income Fund: Monthly Cash From Canada’s Biggest Casual Chain

Boston Pizza Royalties Income Fund (TSX: BPF.UN) is not a restaurant operator in the usual sense. It’s a royalty fund tied to Boston Pizza restaurant sales in its royalty pool — in simple terms, it collects a slice of top-line franchise revenue rather than trying to run every kitchen itself. That gives it a fairly clean income model. Investors are really betting on the health of the Boston Pizza brand and the sales flowing through its 372-restaurant network.

Over the last year, the story has been better than many casual investors might expect. Boston Pizza reported record franchise sales of $976.3 million for 2025, up 4.8% from 2024, while same-restaurant sales rose 4.7%. Management pointed to continued strength in takeout and delivery, effective promotions, and a boost from major sporting events. It’s a reminder that this is still a brand with a loyal customer base, even in a choppy consumer environment.

There were a few shareholder-friendly developments as well. The fund raised its monthly distribution to $0.12 starting with the July 2025 payout, declared a special cash distribution of $0.11 in December 2025, and announced no changes to the royalty pool for January 1, 2026 — no restaurants were added or removed during 2025. That last point is not thrilling, but it does suggest stability, which is not a bad thing when you are buying an income stock.

Earnings: Steady Progress, Not Fireworks

The earnings side looks solid. For 2025, the fund generated $39.7 million in cash flows from operating activities, up 4.1% year over year, and distributable cash rose to $31.6 million, also up 4.1%. Net and comprehensive income came in at $42.2 million, up from $31.9 million in 2024. Those are the kinds of numbers income investors want to see: not explosive growth, but steady progress in the cash that supports distributions.

There is one wrinkle worth noting. The reported payout ratio for 2025 was 71%, which looks a little tight at first glance. But that figure included the special cash distribution — strip that out, and the regular payout looks well-covered. This does not look like a reckless payout story. It looks more like a fund that stretched a bit to share an extra reward after a strong year.

Valuation looks reasonable for an income vehicle with a recognizable consumer brand behind it. At recent prices around $24.45, the fund carries a market cap of roughly $519 million and a trailing price-to-earnings ratio of about 18.9 — not a bargain-bin number, but not unreasonable for a royalty structure with improving sales and a near-6% monthly yield. The main risk is simple: if consumer spending weakens, restaurant sales can soften. Still, for investors who want monthly cash and a business model that is easy to understand, this one fits quite well. In fact, even $7,000 can bring in quite a bit.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $7,000ANNUAL DIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYBPF.UN$23.88285$1.42$416.06Monthly

Bottom line

If you’re after a dividend stock that pays monthly cash, Boston Pizza Royalties Income Fund makes a good case for itself. It offers a near-6% yield, a familiar brand, and 2025 results that show the business still has real momentum — record franchise sales, growing distributable cash, and a distribution increase. It’s not a no-risk pick, because restaurant spending can always cool off. But for a Canadian investor who wants regular income with a little flavour, this one is worth a closer look.

The royalty model is also worth appreciating on its own terms. Unlike a restaurant operator exposed to labour costs, food inflation, and lease risk, BPF.UN sits above all of that — it just collects its percentage of sales. That’s a more durable income structure than most people realize, and it’s one of the cleaner monthly income stories on the TSX right now.

The post A 5.9% Dividend Stock Paying Out Monthly Cash appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.