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How often do you receive your paycheck – weekly, biweekly or monthly? In the world of investing, payouts can be quarterly or monthly. With markets swinging around interest rate decisions, passive income investing is a game-changer for investors looking for immediate passive income.
Some dividend-paying stocks have been trading near their lows despite having solid fundamentals, creating an opportunity for retirees to pool their money into a few stocks yielding 8% and collect a monthly payment.
Two Affordable Passive Income Stocks
Canada is home to good dividend stocks. However, in this market uncertainty, good is not enough. Resilience is needed. And the best resilience was demonstrated by food traders in every crisis. Even in an apocalypse, Walmart It would be a place where people would flock to get supplies. That is the epitome of resilience. And housing these shopkeepers is Slate Grocery REIT (TSX:SGR.UN).
The grocery REIT
Although Slate Grocery REIT is listed on the TSX, its origins lie in the United States. It has 116 properties in 23 US states and most of them are occupied by food retailers such as Hands and Walmart. The real estate investment trust's (REIT) rental income has been on the rise. As of June, the REIT was trading at a 20% discount to its net asset value of $13.98. However, the market caught up and overcame this discount following interest rate cuts.
Even after the recovery, the REIT has an annual distribution yield of 8.3%. The REIT pays distributions in U.S. dollars, but Canadian investors receive payment in Canadian dollars, benefiting from exchange rate fluctuations.
In a recovery or recession, the REIT has the resilience to continue paying distributions.
Timbrecreek Finance
While not as resilient as Slate Grocery REIT, Timbrecreek Finance (TSX:TF) offers something different. The short-term lender to income-producing REITs gives you resilience through its diversified customer base. Timbercreek lends to various REITs: commercial, residential, retail and industrial. Since it offers short-term loans, the interest risk is comparatively lower than that of long-term mortgage lenders.
In a high interest rate environment, Timbercreek reported record interest income and even gave out a special dividend last year. However, lending activity slowed and loan repayments increased. This reduced its processing fee income and interest income. The slowdown is short-lived, however, as rate cuts have revived demand for loans. TF’s stock price is up 13% since June, when the rate cuts began.
Even after the stock price recovery, the lender has an annual distribution yield of 8.4%.
How to generate monthly passive income
If you invest $10,000 in each of the two stocks mentioned above now, you can earn up to $1,673 in annual dividends.
| Stock | Dividend yield | Current share price | Share Tell | Total dividend in 2025 |
| Timbercreek Finance | 8.46% | $8.16 | 1225.00 | $845.25 |
| Slate Grocery REIT | 8.30% | $14.1 | 708.72 | $828.36 |
| Annual dividend | $1,673.61 |
Since both offer monthly payouts, you can start earning $139.5 in monthly passive income starting October 15th. You can use this income to reinvest in other stocks and increase your profits. Or you can use it to make ends meet.
If you are looking for opportunistic growth stocks to buy with the passive income of $139, you can add Hive Digital Technologies to your watchlist and buy it when it is trading at $4. Discarding Systems and Bombardier There are also some good stocks to consider.