Build a Cash-Gushing Passive-Income Portfolio With Just $25,000

Passive income can help you navigate a challenging macroeconomic environment marked by persistent inflation and rising geopolitical tensions. It provides financial stability while helping preserve your purchasing power as prices climb. Monthly dividend stocks, in particular, are an excellent way to generate reliable income in a low-interest-rate environment, while also offering the potential for capital appreciation.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCYNWH.UN$5.742,177$12,496$0.03$65.3MonthlyPZA$16.1776$12,494$0.0775$60.1MonthlyTotal$125.5

With this in mind, let’s examine two high-quality monthly dividend stocks that deliver attractive yields. A $25,000 investment in these companies could generate approximately $125 in monthly passive income.

NorthWest Healthcare Properties REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) owns and operates 167 healthcare infrastructure assets, comprising 15.7 million square feet of gross leasable area. Supported by its highly defensive portfolio and long-term lease agreements with a strong tenant base, the real estate investment trust (REIT) maintains a healthy occupancy rate regardless of economic cycles and market volatility. As of the end of its most recently reported third quarter, occupancy stood at 96.9%, while the weighted average lease expiry was 13.4 years.

The REIT has also been strengthening its balance sheet by reducing leverage. Since the beginning of 2024 through November 11, 2025, the company has divested $1.3 billion in non-core assets and primarily used the net proceeds to repay debt. Additionally, supported by improving operating performance, it lowered its adjusted funds from operations (AFFO) payout ratio from 99% in the prior-year quarter to 85%, enhancing the sustainability of its distributions.

Looking ahead, rising life expectancy and an aging population are driving increased demand for healthcare infrastructure, positioning NorthWest Healthcare to benefit from these long-term trends. With healthy liquidity of approximately $250 million at the end of the third quarter, the REIT is well-positioned to pursue selective growth opportunities. Given its defensive portfolio, improving financial performance, and declining debt levels, I expect the REIT to remain well-positioned to reward shareholders in the coming years. Currently, the company pays a monthly distribution of $0.03 per share, yielding 6.27% based on the January 28th closing price.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) follows an asset-light business model, with Pizza Pizza and Pizza 73 restaurants operated by franchisees. The company collects royalties based on franchise sales, helping shield its financials from rising commodity costs and wage inflation. This structure supports stable financial performance and enables the company to reward shareholders with an attractive dividend yield.

In its most recently reported third-quarter results, same-store sales increased 0.1%, driven by a 0.3% gain at Pizza Pizza locations, while Pizza 73 same-store sales declined 1.1%. Both brands experienced lower traffic, which management attributed to the current economic environment, softer consumer spending, and intensified competition. However, the average check size for both brands rose, supported by growth in higher-value delivery orders.

Meanwhile, PZA is enhancing its digital platforms, improving service speed, and introducing innovative menu items to boost customer traffic. The company is also expanding its store network and renovating existing locations. Collectively, these initiatives position PZA to sustain its dividend payments at a healthy level, making it a compelling income stock. It currently offers a monthly payout of $0.0775 per share, translating into a forward yield of 5.78%.

The post Build a Cash-Gushing Passive-Income Portfolio With Just $25,000 appeared first on The Motley Fool Canada.

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* Returns as of January 15th, 2026

More reading

• TFSA: How to Turn the New $7,000 Contribution Into Monthly Passive Income
• 6.5% Yield: Is NorthWest REIT’s Dividend Safe?
• 3 Canadian Stocks That Paid Record Dividends in 2025
• An Ideal TFSA Stock With a 6.6% Payout Each Month
• 3 High-Yield Dividend Stocks Perfect for TFSA Contributions in 2026

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.