3 monthly paying dividend stocks to increase your passive income

Last month, the Bank of Canada cut its key interest rate by 25 basis points to 2.25%, responding to concerns about a weakening economic outlook, driven in part by U.S. trade policy. In this lower interest rate environment, investors may want to consider high-quality monthly dividend stocks to generate stable, reliable passive income. With that in mind, here are my top three picks.

SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) delivered solid third-quarter performance earlier this month, leasing 68,000 square feet of previously vacant space. To date, it has leased approximately 394,000 square feet, with occupancy rates remaining at an impressive 98.6%. Supported by substantial customer traffic and a high-quality tenant base, same-property NOI (net operating income) increased 4.6% year-over-year. Reflecting these healthy operating metrics, adjusted FFO (funds from operations) increased 5.7% to $0.57.

The Toronto-based REIT (Real Estate Investment Trust) continues to expand its asset base, opening three new self-storage facilities this year, bringing the total to 14. Additional projects under construction in Montreal and Laval are expected to open next year, while management expects developments in Burnaby and Victoria to come online in 2027. In addition, SmartCentres has a robust development pipeline totaling 86.2 million square feet of residential, retail, senior living, self-storage and office space. categories.

With strong occupancy rates, steady leasing activity and a diversified development pipeline, the REIT is well positioned to improve its financial performance and maintain its attractive monthly dividend. SmartCentres currently offers an attractive yield of 7.1% and stands out as an excellent income-oriented investment.

Whitecap Resources

Second on my list is Whitecap Resources (TSX:WCP), which currently offers an attractive forward dividend yield of 6.28%. The oil and natural gas producer delivered impressive third-quarter performance last month, exceeding its internal production targets. It reported average production of 374,623 boe/d, with production per share rising 4.7% year over year, thanks to strengthened production capabilities and continued efficiency gains.

Although softer energy prices pushed the company’s average realized price down by 6.5%, Whitecap offset some of this impact by reducing average production costs by 8% through streamlined workflows, optimized practices and improved infrastructure use. Supported by this robust operating performance and early synergy benefits, the company generated $897 million in fund flow, or $0.73 per share, up 7.4% year over year.

Whitecap also maintains a solid financial position with an annualized net debt to fund flow ratio of 1 and liquidity of $1.6 billion. Following the strong quarter, the company has raised its 2025 production forecast to 305,000 boe/d, up from the previously stated range of 295,000 to 300,000 boe/d. Additionally, Whitecap plans to invest $2 billion to $2.1 billion next year to further expand its manufacturing capabilities. Combined with improved operational execution, disciplined capital allocation and continued operational and business synergies, these initiatives could strengthen both top-line and bottom-line earnings in the years ahead. Given these positive developments, I believe Whitecap’s future dividend payments are sustainable.

Pizza Pizza Royalty

My final choice is Pizza Pizza Royalty (TSX:PZA), which currently offers an attractive dividend yield of 6.22%. The company operates 694 Pizza Pizza and 100 Pizza 73 restaurants through its franchisees and earns royalties based on sales. This asset-light, royalty-based model protects the financial sector from commodity price volatility and rising labor costs, allowing it to generate stable, predictable cash flows.

In the recently reported third quarter, PZA posted a 0.1% increase in same-store sales, thanks to higher average check sizes, although softer traffic partially offset gains. Management attributed the lower footfall to challenging macroeconomic conditions and intensifying competition in quick-service restaurants.

To combat these headwinds, the company is investing in digital ordering, improving service speed and introducing new menu innovations to attract more customers. It is also expanding its restaurant network and expects the number of traditional stores to grow 2% to 3% this year. Meanwhile, the ongoing restaurant renovation program could further support visitor and revenue growth.

Given its strategic growth initiatives and resilient, asset-light business model, I believe PZA is well positioned to continue paying healthy dividends to shareholders.