My 3 Favourite Stocks for Monthly Passive Income

If you want monthly passive income from stocks, you will likely have to do a bit of digging. Monthly dividend stocks are becoming a rare breed in Canada. Most stocks have converted to quarterly dividends.

Yet, there are a few stocks whose business models fit well with monthly passive-income payouts. Royalty stocks, real estate investment trusts (REITs), and industrial stocks seem to be the most likely to pay a monthly dividend. If you are looking for monthly passive income, here are three of my favourite stocks today.

Chartwell: A big growth tailwind and growing passive income

With a market cap of $6.3 billion, Chartwell Retirement Residences (TSX:CSH.UN) is Canada’s largest provider of retirement communities. It operates over 200 communities in Canada.

Chartwell has delivered an incredible comeback after the pandemic. Its stock is up 130% in the past three years. Occupancy is sitting at 94.5% today.

Demand for retirement communities continues to strengthen as aging baby boomers retire and continue to look for a mix of care and independent living options. Elevated interest rates and high development expenses are keeping new supply from the market.

Incumbent retirement communities should benefit from elevated occupancy and strong rental rate growth in the years ahead. Analysts are expecting low double-digit cash flow per unit growth in 2026.

Chartwell stock pays a $0.052 monthly distribution, which equals a 3.15% yield. It recently increased its distribution 2% in 2026. It’s a defensive stock with a long tailwind of growth to buy for monthly passive income.

Exchange Income: A top diversified company for monthly dividends

Another favourite monthly dividend stock is Exchange Income Corporation (TSX:EIF). It has a market cap of $5.81 billion. Exchange is a diversified conglomerate with a focus on aviation, aerospace, and niche manufacturing.

Exchange is a leading provider of air services to remote regions in northern Canada. Its recent acquisition of the Canadian North airline cements its leadership position. Its services are essential to the communities it serves. These services are difficult to replicate by another provider.

It also operates several manufacturing businesses that tend to operate counter-cyclically to the air business. This provides a nice hedge within the business. The diverse business mix helps support steadier growth. Speaking of growth, it had a banner year in 2025. It expects double-digit growth in 2026.

Exchange stock pays a $0.23 per share monthly dividend. That equates to a 2.7% yield. It has raised its dividend 19 times in the past 21 years. Its great stock for growth and passive income.

Granite REIT: A dividend stock for rising passive income

If you are looking for something a little more defensive, Granite Real Estate Investment Trust (TSX:GRT.UN) is a perfect place to look for passive income. With a market cap of $4.9 billion, it is the largest industrial REIT in Canada.

Its properties are diversified across Canada, the United States, Europe, and recently, the United Kingdom. The REIT’s logistics and manufacturing properties form the backbone of modern commerce. These large-scale properties are highly attractive to high-quality tenants. It has over 98% occupancy. Granite has enjoyed solid mid- to high single-digit cash flow per unit growth over the past several years.

Granite has a prudent management team and a great balance sheet. This stock pays a $0.2958 monthly distribution. That equals a 4.35% yield. It has raised its distribution for 15 consecutive years, so you can expect your passive income to grow with this stock.

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

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More reading

• $50K TFSA: How to Structure for Constant Income
• Safer Dividend Stocks to Buy With $20,000 Right Now
• 4 TSX Dividend Champions Every Retiree Should Consider
• The Best Dividend Stocks to Buy and Hold Forever
• 3 Canadian Blue-Chip Stocks to Hold Through 2026 and Beyond

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.