3 Monthly Dividend Stocks to Buy and Hold Forever #CanadaFinance

Written by Amy Legate-Wolfe at The Motley Fool Canada

Investing in monthly dividend stocks can be a savvy strategy for those seeking regular income. Three notable Canadian companies are Whitecap Resources (TSX:WCP), Northland Power (TSX:NPI), and Exchange Income (TSX:EIF) – all of which offer such opportunities. Let’s delve into their recent performances and future prospects.

Whitecap Resources, a prominent player in the energy sector, recently announced its 2024 financial results. The dividend stock reported revenues of $3.32 billion, slightly down from the previous year’s $3.38 billion. Net income stood at $812.3 million, a decrease from $889 million in 2023. Despite these figures, Whitecap achieved record annual production, averaging over 174,000 barrels of oil equivalent per day (boe/d) in 2024, up from 112,222 boe/d in 2021. This growth underscores the dividend stock’s operational efficiency and commitment to scaling its production capabilities.

Looking ahead, Whitecap outlined a capital investment plan of $550 to $600 million for 2025. This budget aims to drill approximately 190 conventional wells across Alberta and Saskatchewan, targeting modest growth while generating 70% of the company’s free cash flow. Such strategic investments are expected to bolster Whitecap’s production capacity and enhance shareholder value in the coming years.

Northland Power, specializing in renewable energy, reported commendable fourth-quarter and full-year 2024 results. The company achieved the higher end of its financial guidance for both adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and free cash flow per share. This performance reflects Northland’s robust operational management and ability to effectively navigate the evolving energy landscape.

The future looks promising for Northland, with several projects underway in Poland, Taiwan, and Canada. These initiatives are anticipated to start contributing to the dividend stock’s earnings in 2025, with full realization expected by 2027. Such developments position Northland to capitalize on the global shift towards renewable energy, potentially leading to sustained growth and profitability.

Exchange Income, a diversified acquisition-oriented company, has also demonstrated resilience and growth. The dividend stock’s market capitalization has seen fluctuations, standing at $2.45 billion as of December 31, 2024, down from $2.8 billion in the previous quarter. Despite these changes, Exchange Income has maintained a steady trajectory, reflecting its diversified business model’s strength.