The TSX doesn’t have many stocks that pay dividends monthly. As a result, you have to dig down to find quality monthly dividend stocks. If I were looking for a combination of modest growth and stable income, these two TSX stocks would be my top picks for monthly income.
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Chartwell Retirement: A top TSX stock for monthly dividends
Chartwell Retirement Residences (TSX: CSH.UN) sits at the top of the list. It pays a $0.05 monthly dividend that equates to a 2.9% dividend yield at today’s price of $21.49.
Chartwell is a play on a massive demographic trend in Canada. Baby boomers are retiring in droves. A wave of demand continues to build for quality retirement communities that provide living, healthcare, and community options.
With 142 residences in its portfolio, Chartwell is the largest senior’s retirement living provider in Canada. Demand for Chartwell’s properties is only growing, while supply is simply not keeping up. Chartwell’s occupancy is expected to hit 96% by the end of the year.
Strong demand helps ensure a strong pricing environment. In the third quarter, same property adjusted revenue per suite grew 5.8%. Same property adjusted net operating income increased 14%. Chartwell enjoyed 16.7% revenue growth and 25% funds from operations per unit growth. Analysts continue to expect double-digit growth over the coming years.
To meet future demand, Chartwell continues to upgrade its portfolio through acquisitions and developments. It has a good balance sheet to support both organic and development opportunities.
Chartwell just increased its distribution by 2% in March 2026. That was the first increase in a few years, so the company is showing confidence in its cash profile.
Exchange Income: A strong stock for growth and monthly income
Exchange Income Corp. (TSX: EIF) is another top monthly dividend stock. This stock is exploiting another large trend in Canada. The Canadian government has renewed its focus on resource development, national infrastructure, and defence capabilities. A major area of development is Canada’s northern regions.
Exchange is one of the largest providers of aviation services to Canada’s remote northern communities. It also has a defence aerospace business and several manufacturing/industrial service businesses.
With Exchange, you get unique exposure to specific niches. However, you get stability from a broader business portfolio. Its diversified strategy has been gaining momentum after a couple of years of double-digit growth. In the second quarter, Exchange grew revenues by 32% and earnings per share increased 29%.
The company raised its year-end guidance, which would push full-year earnings before interest, tax, depreciation, and amortization (EBITDA) growth to 18%. It also happened to raise its monthly dividend by 4.3% after the quarter. This will be its 19th dividend increase in 21 years.
Exchange has demonstrated an attractive mix of organic and acquisition growth over the years. If you want exposure to defence and infrastructure trends in Canada, Exchange is a great bet. You get to collect a growing 2.4% yield on your cost while these opportunities unfold. Exchange Income is an ideal stock for monthly income and growth for the long term.
