Anybody constructing a portfolio for reliable passive revenue would like to receives a commission each single month. Whereas most dividend shares pay quarterly, month-to-month funds could make issues simpler, particularly for retirees or traders who wish to reinvest immediately. After all, the true problem is discovering an organization that may truly afford to maintain paying that month-to-month dividend.
Firms with secure manufacturing and disciplined spending typically have a greater shot at supporting beneficiant payouts. One Canadian month-to-month dividend inventory that matches this description is Cardinal Vitality (TSX:CJ), which at present gives a juicy annual yield of greater than 7%.
Cardinal Vitality: Constructed for regular month-to-month revenue
In case you don’t comprehend it already, Cardinal Vitality is predicated in Calgary, and it primarily focuses on oil and pure gasoline property in Western Canada. What makes it fascinating for revenue traders is its low-decline manufacturing profile. In easy phrases, its wells don’t lose output as rapidly as many others do. Which means the power agency doesn’t need to spend aggressively simply to maintain manufacturing going. These decrease reinvestment wants assist defend its free money circulation and dividend.
Cardinal produced a median of 20,772 barrels of oil equal per day within the third quarter of 2025. Its manufacturing included gentle oil, medium and heavy oil, pure gasoline liquids, and traditional pure gasoline. This combine offers it some diversification throughout the power sector.
These sturdy operations have helped CJ inventory pattern larger. After rallying by almost 50% during the last 12 months, it at present trades at $9.47 apiece, giving it a market cap of about $1.6 billion.
Extra importantly for revenue traders, it gives a 7.6% annualized dividend yield at this market worth, paid month-to-month.
A have a look at its monetary efficiency and money circulation
Final quarter, Cardinal generated $127 million in petroleum and pure gasoline income. In the meantime, its adjusted funds circulation got here in at $47.3 million.
Though the corporate’s adjusted funds circulation declined 28% YoY (12 months over 12 months), it was primarily as a result of realized commodity costs have been down 13% and manufacturing was barely decrease. Even so, it remained solidly money circulation optimistic.
In the meantime, the corporate additionally saved an in depth eye on prices. Its web working bills improved to $24.05 per barrel of oil equal within the newest quarter, a 1% enchancment from the 12 months earlier than. On the identical time, it managed to scale back its growth capital expenditures by 21% YoY to $26.3 million, reflecting disciplined spending.
Robust development prospects in 2026 and past
One of many largest development drivers for Cardinal is its Reford steam-assisted gravity drainage (SAGD) thermal venture in Saskatchewan. Through the third quarter, the corporate invested $14.4 million because the venture moved into the manufacturing part. Its development and commissioning have been accomplished on finances and forward of schedule.
Early outcomes counsel the reservoir is performing properly, and preliminary oil volumes look promising as manufacturing ramps up.
Cardinal Vitality expects Reford to make a significant contribution in 2026. At a US$65 West Texas Intermediate (WTI) crude oil worth, the added manufacturing is projected to generate about $100 million in adjusted funds circulation this 12 months. That further money may decrease the corporate’s general breakeven level, strengthen dividend protection, and create extra flexibility to scale back debt or reinvest within the enterprise, making it the highest Canadian month-to-month dividend inventory to think about in 2026.
