Turn Your Portfolio Into a Cash Machine in 2025

Written by Jitendra Parashar at The Motley Fool Canada

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If you have a reliable source of monthly passive income, you can use it to fund your lifestyle, cover bills, or simply reinvest for even higher returns in the long run. That’s exactly where monthly income stocks come in. Unlike most dividend payers that distribute payouts on a quarterly basis, these Canadian stocks send cash your way every single month, giving your portfolio the predictability and consistency of a cash machine. Whether you’re retired, seeking financial independence, or reinvesting for solid long-term gains, monthly dividend stocks could make all the difference.

In this article, I’ll highlight two of the best monthly income stocks on the Toronto Stock Exchange you can consider adding to your portfolio in 2025.

The Markham-headquartered seniors living options provider, Sienna Senior Living (TSX:SIA), is the first monthly dividend stock to make the list. The company operates a large network of long-term care and retirement residences across Canada. After rallying by 29.2% over the last year, SIA stock currently trades at $15.18 per share with a market cap of $1.3 billion. It offers an impressive 6.2% annualized dividend yield at this market price.

As Sienna stock continues to ride the momentum of its impressive growth trajectory, it’s clear that its strategic initiatives are paying off. In the third quarter of 2024, the firm’s adjusted same-property net operating income grew by 14.7% YoY (year over year) to $43.4 million, supported by strong occupancy gains in its retirement and long-term care segments. Its retirement segment occupancy surpassed 90% in September 2024, achieving this impressive milestone for the first time in over five years.

In addition to stronger operational growth, Sienna has been actively expanding its portfolio. The company’s recent acquisition of a $181.6 million continuing care home portfolio in Alberta further diversifies its asset base. And it’s expected to provide a solid investment yield of 6.5% in the first year itself.

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What sets Sienna apart is its strong fundamentals, which are key reasons why I already own this reliable monthly dividend stock. With a stable business model, consistent cash flow, and an over 6% annualized yield, Sienna stock could provide you with a steady monthly income for years to come.

Besides Sienna, another attractive Canadian monthly dividend stock to consider in 2025 is Whitecap Resources (TSX:WCP). WCP stock has risen 18.5% over the last year to currently trade at $10.57 per share with a market cap of $6.2 billion. At the current market price, it has a 6.9% annualized dividend yield.

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