Written by Sneha Nahata at The Motley Fool Canada
Canadian investors looking for stocks that pay cash every month could consider monthly dividend stocks. These regular payouts can provide a dependable income stream, much like receiving a monthly paycheque.
However, payment frequency is only part of the equation. The best monthly dividend stocks offer attractive yields with durable business models, healthy cash flows, and the financial flexibility to maintain their payouts through changing economic conditions. Companies with these qualities are far more likely to reward shareholders consistently over the long run.
That’s why you should look for TSX stocks backed by proven operating performance, disciplined capital allocation, and a history of reliable distributions.
One TSX dividend stock checks all these boxes. It currently offers an attractive 4.8% dividend yield, pays shareholders every month, and has the fundamentals to sustain its payouts.
Whitecap offers a 4.8% yield and pays every month
While the TSX has only a handful of stocks that pay cash every month, Whitecap Resources (TSX:WCP) stands out for its solid distribution history, compelling yield, and ability to sustain its payouts.
Whitecap has been rewarding shareholders through commodity cycles with steady monthly payouts. Since January 2013, the energy company has returned more than $3.2 billion to shareholders through dividends, highlighting the strength of its operations and cash-generating ability.
A diversified portfolio of high-quality assets, disciplined capital spending, and efficient operations have enabled Whitecap to generate healthy cash flow even in challenging market environments. That financial strength provides a solid foundation for maintaining its monthly dividend.
Whitecap’s acquisition of Veren has further strengthened its growth profile. The transaction expanded Whitecap’s production base, increased operational scale, and created opportunities for additional efficiencies, all of which are likely to drive stronger free cash flow over time.
Today, Whitecap pays a monthly dividend of $0.061 per share, yielding over 4.8% based on its closing price of $15.05 on June 29.
Whitecap delivers solid Q1, well-positioned to sustain payouts
Whitecap Resources delivered a strong Q1, led by higher production and benefits from its recent acquisition of Veren. The company produced an average of 391,416 barrels of oil equivalent per day during Q1, surpassing its original guidance. Strong well performance, resilient base production, and improved operational execution all contributed to the stronger-than-expected results.
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