Originally posted by Forex Crypto Hub
Canadian stocks and ETFs that pay monthly dividends are far and few in-between. We have compiled a list of the best Canadian based dividend stocks that pay their dividends monthly, month after month!
Generally medium to large cap Canadian dividend stocks pay on a quarterly basis (4 times per year).
In our dividend ETFs and stocks in Canada, we have included typical equities, REITs, ETFs and other types of income producing companies that pay monthly dividends. The highest yielding dividends usually come from covered call ETFs and split corps, both have varying management fees, similar to mutual funds.
A stock or ETF that pays a monthly dividend is an equity that distributes a portion of its earnings to shareholders on a regular basis, usually on a monthly basis.
Article Summary
- Monthly Dividend Stocks List in Canada
- Highest Paying REIT Canadian Dividend Stocks & ETFs List
- Highest Yielding Covered Call ETFs In Canada
- Best Split Corp. Dividend Funds List That Pay Monthly
- Top 10 Highest Paying Dividend Stocks List on the TSX
Updated October 2023.
Monthly Dividend Stocks List in Canada – October 2023
| Rank | Symbol/Ticker | Company Name | Forward Annual Div Yield |
| 1 | HYLD.TO | Hamilton Enhanced U.S. Covered Call ETF | 13.55% |
| 2 | ZWK.TO | BMO Covered Call US Banks ETF | 11.11% |
| 3 | ZWU.TO | BMO Covered Call Utilities ETF | 8.28% |
| 4 | ZPH.TO | BMO US Put Write Hedged to CAD ETF | 8.26% |
| 5 | ZHP.TO | BMO US Preferred Share Hedged to CAD Index ETF | 7.33% |
| 6 | ZWG.TO | BMO Global High Dividend Covered Call ETF | 7.24% |
| 7 | HYI.TO | Horizons Active High Yield Bond ETF | 7.11% |
| 8 | FIE.TO | iShares Canadian Financial Monthly Income ETF | 7.07% |
| 9 | ZWC.TO | BMO CA High Dividend Covered Call ETF | 6.96% |
| 10 | ZUP-U.TO | BMO US Preferred Share Index ETF | 6.93% |
| 11 | ZWE.TO | BMO Europe High Dividend Covered Call Hedged to CAD ETF | 6.76% |
| 12 | ZHY.TO | BMO High Yield US Corporate Bond Hedged to CAD Index ETF | 6.63% |
| 13 | SYLD.TO | Purpose Strategic Yield Fund | 6.51% |
Highest Paying REIT Canadian Dividend Stocks & ETFs List
The highest paying monthly REIT Canadian dividend stocks, meaning the ones with the highest monthly yield are posted below.
As you will see from the list, many high yielding monthly dividend stocks are REIT ETFs and all of them are listed on the TSX (Toronto Stock Exchange).
What is a REIT?
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-generating real estate. REITs provide a way for individuals to invest in large-scale, income-producing real estate without having to directly buy, manage, or finance properties themselves. They typically own and manage a portfolio of real estate assets, such as commercial properties (office buildings, shopping centers), residential properties (apartment complexes), or infrastructure (like hotels and resorts).
Canadian REIT ETF List – October 2023
| Ticker | Company Name | Forward Annual Div Yield |
| TNT-UN.TO | True North Commercial Real Estate Investment Trust | 13.88% |
| INO-UN.TO | Inovalis Real Estate Investment Trust | 13.80% |
| BRE.TO | Bridgemarq Real Estate Services Inc. | 10.58% |
| BTB-UN.TO | BTB Real Estate Investment Trust | 10.03% |
| SOT-UN.TO | Slate Office REIT | 9.16% |
| MREL.TO | Middlefield Real Estate Dividend ETF | 7.62% |
| RIT.TO | CI Canadian REIT ETF | 5.18% |
| VRE.TO | Vanguard FTSE Canadian Capped REIT Index ETF | 3.87% |
Highest Yielding Covered Call ETFs In Canada – October 2023
| Ticker | Company Name | Forward Annual Div Yield |
| HMAX.TO | Hamilton Canadian Financials Yield Maximizer ETF | 16.60% |
| HYLD.TO | Hamilton Enhanced U.S. Covered Call ETF | 12.83% |
| ZWK.TO | BMO Covered Call US Banks ETF | 11.61% |
| ZWU.TO | BMO Covered Call Utilities ETF | 8.92% |
| CIC.TO | CI Canadian Banks Covered Call Income Class ETF | 8.86% |
| ZPH.TO | BMO US Put Write Hedged to CAD ETF | 8.11% |
| ZWB.TO | BMO Covered Call Canadian Banks ETF | 7.97% |
| ZWC.TO | BMO CA High Dividend Covered Call ETF | 7.71% |
| RCDC.TO | RBC Canadian Dividend Covered Call ETF | 7.50% |
| ZWG.TO | BMO Global High Dividend Covered Call ETF | 7.29% |
| ZWE.TO | BMO Europe High Dividend Covered Call Hedged to CAD ETF | 7.17% |
| ZWA.TO | BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF | 6.46% |
What Are Covered Call ETFs?
A Covered Call ETF, or Exchange-Traded Fund, is a financial product that combines the features of a traditional ETF with a covered call strategy. This investment approach involves holding a diversified portfolio of stocks, typically tracking a specific index, while simultaneously selling or “writing” call options on those same underlying securities. The primary objective of employing covered calls is to generate additional income for investors.
In a covered call strategy, an investor (or the ETF itself) owns a certain amount of the underlying stocks represented in the ETF portfolio. Simultaneously, the investor sells call options, giving the option buyer the right (but not the obligation) to purchase those underlying stocks at a predetermined price (strike price) within a specified time frame (expiration date). The seller of the call option receives a premium, which serves as additional income.
The “covered” aspect of this strategy comes from the fact that the investor already owns the underlying stocks, providing a level of security or coverage against potential losses. If the call option is exercised, the seller can deliver the stocks from their existing portfolio, limiting the risk associated with the call option.
In summary, a Covered Call ETF combines the benefits of traditional ETF investing with a covered call strategy to generate additional income for investors. It involves owning a diversified portfolio of stocks while simultaneously selling call options on those same stocks. While providing an income stream, the strategy has trade-offs, including limiting the portfolio’s upside potential. Investors considering covered call ETFs should carefully assess the fund’s characteristics, performance, and tax implications.
Best Split Corp. Dividend Funds List That Pay Monthly – October 2023
| Symbol | Company Name | Forward Annual Div Yield |
| FFN.TO | North American Financial 15 Split Corp. | 44.31% |
| DFN.TO | Dividend 15 Split Corp. | 29.93% |
| DGS.TO | Dividend Growth Split Corp. | 27.91% |
| FTN.TO | Financial 15 Split Corp. | 21.99% |
| BK.TO | Canadian Banc Corp. | 17.95% |
| LBS.TO | Life & Banc Split Corp. | 15.21% |
| PWI.TO | Sustainable Power & Infrastructure Split Corp. | 14.24% |
| SBC.TO | Brompton Split Banc Corp. | 14.18% |
| GDV.TO | Global Dividend Growth Split Corp. | 13.78% |
| ENS.TO | E Split Corp. | 13.60% |
| RS.TO | Real Estate Split Corp. | 12.72% |
| PRM.TO | Big Pharma Split Corp. | 8.68% |
What is a Split Corp Share Corportation?
A Split Corp, short for Split Share Corporation, is a type of investment vehicle designed to provide investors with specific income and capital appreciation objectives. Split Corps issue two classes of shares, typically referred to as Capital Shares and Preferred Shares.
Capital Shares: These shares are designed for investors seeking capital appreciation. They participate in the potential capital gains of the underlying portfolio but generally do not receive regular income in the form of dividends.
Preferred Shares: These shares are designed for income-oriented investors. They typically receive fixed, regular dividend payments. The dividends are often sourced from the income generated by the underlying portfolio, which may consist of stocks, bonds, or other financial instruments.
The structure of a Split Corp allows investors to tailor their investment approach based on their specific financial goals and risk tolerance. Capital Shares offer the potential for higher returns through capital appreciation, while Preferred Shares provide a steady stream of income through regular dividends.
The Best Monthly Dividend Paying Stocks Canada
It can be said that there are not many growth companies that pay monthly dividends in Canada. Although there may not be many, we have selected the best monthly dividend paying stocks down below.
Keyera Corp – Ticker: KEY.TO
Dividend Yield: 6.36%
Another great Canadian monthly paying dividend stock is Keyera Corp. Keyera’s main business involves energy infrastructure in Canada. The company operates through gathering and processing, liquids infrastructure, and marketing segments. Keyera has approximately 4,400 km of pipelines and holds interests in 12 active gas plants in Alberta. They were founded in 2003 with their headquarters in Calgary AB Canada.
Keyera Corp’s current forward dividend yield is a healthy 5.78%. Be sure to take note that they pay dividends monthly.
Pembina Pipeline -Ticker: PPL.TO
Dividend Yield: 5.75%
Pembina pipeline is a transport and midstream provider of crude oil, condensate and natural gas. Over the span of its 21 years of paying dividends, they have paid out over 6 billion dollars back to their investors. With modest dividend growth over the last 5 years, Pembina’s current forward dividend yield is 5.18%.
Pembina Pipeline’s high dividend yield which pays month makes them one the best monthly dividend stocks in Canada.
Purpose Bitcoin Yield ETF -Ticker: BTCY
Dividend Yield: 11.01%
The world’s first yield-focused Bitcoin ETF is actively managed to provide investors with a new way to invest in cryptocurrency. This unique fund uses a covered call strategy to earn yield by harvesting the volatility available from Bitcoin, providing investors with a different risk-and return profile to complement their digital product portfolio.
BTCY pays monthly dividends which makes it one of the most interesting high yielding stock.
Top 10 Highest Paying Dividend Stocks List on the TSX – October 2023
| Rank | Symbol/Ticker | Stock Name | Forward Annual Div Yield |
| 1 | GDC | Genesis Land Development Corp. | 65.79 % |
| 2 | CBLT | CBLT Inc. | 39.38 % |
| 3 | DGS | Dividend Growth Split Corp. Class A Shares | 29.06 % |
| 4 | ZUM | ZoomerMedia Limited | 26.67 % |
| 5 | SDE | Spartan Delta Corp. | 26.32 % |
| 6 | FTN | Financial 15 Split Corp. Class A Shares | 24.13 % |
| 7 | DRFE | Desjardins RI Emerging Markets Multifactor – Low CO2 ETF | 21.77 % |
| 8 | IVX | Inventronics Limited | 19.44 % |
| 9 | DRME | Desjardins RI Emerging Markets – Net-Zero Emissions Pathway ETF | 19.02 % |
| 10 | BK | Canadian Banc Corp. Class A Shares | 18.72 % |
About This Article
Author: Mark Prosz
Sources of information and credits for this post include: Research and data provided by – https://ca.finance.yahoo.com/
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