My 3 Favourite Stocks for Monthly Passive Income

In today’s challenging macroeconomic environment—characterized by persistent inflation and rising geopolitical tensions—building a secondary or passive-income stream has become increasingly important. Passive income can provide financial stability while helping protect your purchasing power as costs continue to rise. In this low-interest-rate environment, high-quality monthly dividend stocks stand out as an attractive option for generating steady, reliable income.

With that in mind, let’s take a closer look at my three top picks that offer consistent monthly payouts.

SmartCentres Real Estate Investment Trust

Real estate investment trusts (REITs) must distribute at least 90% of their taxable income to shareholders, making them attractive to income-focused investors. Against this backdrop, I have selected SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which owns and operates 197 properties across Canada, representing 35.6 million square feet of income-producing space. Thanks to its strategically located portfolio and high-quality tenant base, the REIT reported a robust 98.6% occupancy rate at the end of the third quarter.

In addition, SmartCentres has a strong 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 facilities in Quebec last year, bringing the total portfolio to 14 locations. Looking ahead, it plans to open two more facilities in Quebec this year and another two in British Columbia in 2027, while pursuing municipal approvals for a newly acquired self-storage site in Edmonton, Alberta. These growth initiatives should strengthen cash flows and support sustainable dividend payouts. Currently, SmartCentres pays a quarterly distribution of $0.1542 per share, yielding 6.82% on a forward basis.

Whitecap Resources

Another monthly-paying dividend stock that I am bullish on is Whitecap Resources (TSX:WCP), an oil and natural gas producer with operations concentrated in Western Canada. The company significantly strengthened its production profile through its merger with Veren in May 2025. This transaction has delivered meaningful cost synergies while enhancing Whitecap’s balance sheet and overall financial flexibility. As of the end of the third quarter, the company reported liquidity of $1.6 billion and maintained a conservative net-debt-to-annualized funds flow ratio of just one.

Whitecap remains focused on operational excellence, disciplined capital allocation, moderate production growth, and the continued realization of merger-related synergies. Management expects capital spending of $2.0–$2.1 billion this year, which should further enhance production capabilities. Supported by these initiatives, Whitecap forecasts approximately 22% production growth this year while generating nearly $3.3 billion in funds flow. Given these solid growth prospects and strong cash generation, I believe WCP is well-positioned to continue rewarding shareholders with attractive dividends. Currently, the company pays a monthly dividend of $0.0608 per share, yielding 6.82%.

Sienna Senior Living

My final pick is Sienna Senior Living (TSX: SIA), a leading operator offering a comprehensive range of seniors’ living options across Canada. As the Canadian population continues to age, demand for the company’s services is steadily increasing. To capitalize on this favourable demographic trend, Sienna is expanding its footprint through a combination of organic growth and strategic acquisitions, having developed or acquired $812.7 million worth of assets last year.

The company’s operating performance continues to improve meaningfully. Occupancy increased by 230 basis points in the third quarter to 94.1% and maintained its upward momentum, reaching 94.7% in October. Meanwhile, adjusted funds from operations (AFFO) surged 36.1%, supported by strong revenue growth and expanding operating margins. Encouragingly, Sienna’s AFFO payout ratio improved substantially, declining from 91.3% to 78.7%. Collectively, these trends indicate that Sienna is well-positioned to sustain its future dividend payouts. At its current monthly distribution of $0.078 per share, the stock offers a forward dividend yield of 4.24%, making it an attractive option for income-focused investors.

The post My 3 Favourite Stocks for Monthly Passive Income appeared first on The Motley Fool Canada.

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More reading

• Top Canadian Stocks to Buy Right Away With $5,000
• How to Use Your TFSA to Average $1,265 Per Year in Tax-Free Passive Income
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• Goodbye, GICs: These Dividend Stocks Are a Far Better Buy

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.