3 Great Investments That Will Provide You With Monthly Income in 2023

Dividend stocks help investors get a steady stream of recurring income, which can be reinvested or withdrawn. Generally, dividends are distributed to shareholders once every quarter. But some TSX dividend stocks also have monthly payments.

Before investing in dividend stocks, investors should understand that payouts are not guaranteed and may be withdrawn or reduced if the company’s finances deteriorate. So, it’s important to identify companies with strong balance sheets, predictable cash flow, and expanding profit margins.

Ideally, you want to increase the payments every year and also benefit through long-term capital gains. Here are three top TSX dividend stocks that will give you a monthly income in 2023.

Savaria stock

One of the major players in the accessibility business, Savaria (TSX:SIS) provides solutions for the elderly and physically challenged. It designs, manufactures, installs, and distributes equipment such as stairlifts, vertical and inclined wheelchair lifts, and elevators for home and commercial use.

Valued at a market cap of $1.1 billion, Savaria stock has returned more than 1,000% to shareholders in dividend-adjusted gains since July 2013. The company pays shareholders a monthly dividend of $0.043 per share, which translates to to a dividend yield of 3.1%.

Despite its outsized gains, Savaria stock is priced at 26 times forward earnings, which isn’t too steep. Analysts expect Savaria to grow revenue by 18% in 2023 and 40% in 2024, which will allow the company to increase dividends in the near term.

Savaria stock is also priced at a discount of 31% to the consensus price target estimates.

Exchange Income stock

Another TSX stock flying under the radar, Exchange Income (TSX:EIF) should be on your shopping list right now. The company’s operating segments are strategic business units that offer different products and services. It has two business segments, Aviation Services & Aerospace and Manufacturing.

Over the past 10 years, Exchange Income stock has returned 287% valuing the company at $2.4 billion by market cap. It currently pays shareholders a monthly dividend of $0.21 per share, indicating a yield of more than 5%.

Priced at 14.7 times forward earnings, Exchange Income stock continues to trade at a cheap valuation. Analysts expect the TSX stock to gain more than 25% over the next 12 months.

Dream Industrial REIT

A company that offers you exposure to the real estate sector, Dream Industrial REIT (TSX:DIR.UN) pays shareholders a monthly dividend of $0.058 per share, representing a yield of 4.9%.

The real estate investment trust owns, manages, and operates a portfolio of 321 industrial assets totaling 70.4 million square feet of gross leasable area across Canada, Europe, and the US

In Q1 of 2023, Dream Industrial increased:

• funds from operations at 13.3% per year to $0.25 per unit,
• net operating income by 13% to $74.8 million, and
• net rental income by 24.7% to $81.5 million.

It ended the March quarter with total assets of $7.8 billion, up from $7.3 billion in December 2022. With an occupancy rate of 98.6%, Dream Industrial REIT is armed with a balanced level of investment and high quality portfolio. The stock is also trading at a discount of 21.4% to the estimated consensus price target.