2 of the Best Monthly Passive Income Stocks to Buy in Canada Right Now


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If you want to earn reliable monthly passive income in Canada, you might want to consider investing in fundamentally sound stocks that pay their dividends on a monthly basis. While you may find the massive sell-off going on in the market horrifying, the falling stock prices of high-dividend companies make them more attractive to buy at a bargain price. In fact, some well-established Canadian companies have a reputation for consistently rewarding their investors with healthy dividends every month, regardless of market conditions, which could become a great source of reliable monthly passive income for you.

In this article, I’m going to highlight two Canadian stocks with incredible dividends that I find attractive to buy right now.

Freehold Royalties Shares

Freehold royalties (TSX:FRU) is a Canadian energy company with a market capitalization of $2.2 billion primarily focused on the acquisition and management of crude oil and natural gas focused royalties in Canada and the United States . Its stock is currently trading at $13.59 per share with gains of around 25.2% year-to-date against a 9.6% drop in the TSX Composite Index in 2022.

In the second quarter of this year, Freehold Royalties reported a 21% year-on-year (year-over-year) increase in total production to 13,453 barrels of oil equivalent per day. Higher production, along with higher raw material prices, pushed its June quarter revenue up 142% year-on-year to about $108.5 million. With that, its adjusted quarterly profit jumped 340% from a year ago to $0.44 per share. In the coming years, you can expect Freehold’s financial growth trend to strengthen further as it remains focused on making new quality acquisitions in the energy sector.

At the current market price, FRU stock offers an impressive annual return of around 7.4%. Freehold Royalties pays out its dividends on a monthly basis, and its strong financial growth trends make it one of the best Canadian passive income stocks to buy right now.

Keyera Stock

Keyera (TSX: KEY) could be another great Canadian dividend stock to consider right now if you want to invest in stocks to earn stable monthly passive income. This Calgary-based energy transmission company currently has a market capitalization of $6.8 billion, its stock trading at $30.34 per share with gains of 6.3% year-to-date. Keyera stock also rewards its investors with monthly dividends and has an annual yield of around 6.3% at the current market price.

After concerns over the COVID-19 pandemic caused demand and prices for energy products to fall sharply, its revenue growth rate stood at 19% year-over-year in 2020. Nonetheless, the company has experienced an exceptional financial recovery the following year. In 2021, its turnover jumped up up about 65% from a year ago to $5 billion. Higher revenues combined with stronger energy demand pushed its adjusted profit for 2021 up 400% year-on-year.

While Keyera continued to maintain a strong earnings growth trend in the first half of 2022, mounting inflationary pressures could hurt its financial growth in the second half. Nonetheless, its medium to long-term growth prospects remain strong thanks to the company’s continued efforts to follow strict financial discipline while continuing to pursue strategic growth opportunities. Given its positive long-term growth outlook and strong balance sheet, it could be one of the most reliable monthly passive income stocks to buy in Canada today.


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