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Top Canadian Dividend Stocks & ETFs That Pay Monthly

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

RankSymbol/TickerCompany NameForward Annual Div Yield
1HYLD.TOHamilton Enhanced U.S. Covered Call ETF13.55%
2ZWK.TOBMO Covered Call US Banks ETF11.11%
3ZWU.TOBMO Covered Call Utilities ETF8.28%
4ZPH.TOBMO US Put Write Hedged to CAD ETF8.26%
5ZHP.TOBMO US Preferred Share Hedged to CAD Index ETF7.33%
6ZWG.TOBMO Global High Dividend Covered Call ETF7.24%
7HYI.TOHorizons Active High Yield Bond ETF7.11%
8FIE.TOiShares Canadian Financial Monthly Income ETF7.07%
9ZWC.TOBMO CA High Dividend Covered Call ETF6.96%
10ZUP-U.TOBMO US Preferred Share Index ETF6.93%
11ZWE.TOBMO Europe High Dividend Covered Call Hedged to CAD ETF6.76%
12ZHY.TOBMO High Yield US Corporate Bond Hedged to CAD Index ETF6.63%
13SYLD.TOPurpose Strategic Yield Fund6.51%

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).

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Canadian REIT ETF List - October 2023

TickerCompany NameForward Annual Div Yield
TNT-UN.TOTrue North Commercial Real Estate Investment Trust13.88%
INO-UN.TOInovalis Real Estate Investment Trust13.80%
BRE.TOBridgemarq Real Estate Services Inc.10.58%
BTB-UN.TOBTB Real Estate Investment Trust10.03%
SOT-UN.TOSlate Office REIT9.16%
MREL.TOMiddlefield Real Estate Dividend ETF7.62%
RIT.TOCI Canadian REIT ETF5.18%
VRE.TOVanguard FTSE Canadian Capped REIT Index ETF3.87%

Highest Yielding Covered Call ETFs In Canada - October 2023

TickerCompany NameForward Annual Div Yield
HMAX.TOHamilton Canadian Financials Yield Maximizer ETF16.60%
HYLD.TOHamilton Enhanced U.S. Covered Call ETF12.83%
ZWK.TOBMO Covered Call US Banks ETF11.61%
ZWU.TOBMO Covered Call Utilities ETF8.92%
CIC.TOCI Canadian Banks Covered Call Income Class ETF8.86%
ZPH.TOBMO US Put Write Hedged to CAD ETF8.11%
ZWB.TOBMO Covered Call Canadian Banks ETF7.97%
ZWC.TOBMO CA High Dividend Covered Call ETF7.71%
RCDC.TORBC Canadian Dividend Covered Call ETF7.50%
ZWG.TOBMO Global High Dividend Covered Call ETF7.29%
ZWE.TOBMO Europe High Dividend Covered Call Hedged to CAD ETF7.17%
ZWA.TOBMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF6.46%

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.

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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

SymbolCompany NameForward Annual Div Yield
FFN.TONorth American Financial 15 Split Corp.44.31%
DFN.TODividend 15 Split Corp.29.93%
DGS.TODividend Growth Split Corp.27.91%
FTN.TOFinancial 15 Split Corp.21.99%
BK.TOCanadian Banc Corp.17.95%
LBS.TOLife & Banc Split Corp.15.21%
PWI.TOSustainable Power & Infrastructure Split Corp.14.24%
SBC.TOBrompton Split Banc Corp.14.18%
GDV.TOGlobal Dividend Growth Split Corp.13.78%
ENS.TOE Split Corp.13.60%
RS.TOReal Estate Split Corp.12.72%
PRM.TOBig 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

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.

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/