When geopolitical tensions flare, buyers typically flock to security. That normally means money, gold, or defensive shares. However there’s another choice that doesn’t at all times get the highlight: month-to-month dividend shares – the type that pay you regular revenue whereas the world spins unpredictably. In Canada, two standouts that match the invoice are Pizza Pizza Royalty (TSX:PZA) and Agency Capital Property Belief (TSX:FCD.UN). Each present constant month-to-month money and provide long-term resilience, even in periods of political and financial chaos.
Pizza Pizza
Pizza Pizza Royalty is tied to probably the most recognizable fast-food manufacturers in Canada. It doesn’t really run the eating places; as a substitute, it collects royalties based mostly on gross sales from the Pizza Pizza and Pizza 73 manufacturers. This royalty mannequin makes it much less weak to rising labour or meals prices. Whether or not inflation surges or provide chains stall, Pizza Pizza Royalty nonetheless earns its reduce of franchise gross sales.
The dividend inventory’s most up-to-date earnings report, for the primary quarter of 2025, exhibits issues are nonetheless cooking. Income rose 1.9% to $9.7 million in comparison with the identical interval final yr. Identical-store gross sales had been up 1.2%, marking continued development in an unsure economic system. Internet revenue got here in at $7.6 million, and earnings per share (EPS) held regular at $0.23. The royalty pool added 5 new eating places through the quarter, additional boosting the bottom for future revenue. That’s essential with regards to supporting its dividend.
Pizza Pizza Royalty pays a dividend of $0.93 per share, giving it an annual yield of round 6.2% at writing. The payout ratio is barely over 100%, which might elevate eyebrows, however the dividend inventory has a historical past of steady distributions and dependable free money movement. Its franchise community stays robust, with ongoing menu innovation and advertising and marketing help. The dividend inventory is up practically 14% during the last yr, exhibiting investor confidence in its revenue stream. In a interval when individuals may reduce spending elsewhere, pizza nonetheless tends to remain on the menu.
Agency Capital
Then there’s Agency Capital Property Belief. This actual property funding belief (REIT) owns a diversified mixture of multi-residential, industrial, and service-focused retail properties. Its tenants embrace healthcare suppliers, grocery shops, and small companies, most of that are important, recession-resistant companies. It additionally pays a month-to-month distribution and affords a a lot larger yield than many different REITs available on the market.
Agency Capital lately reported stable outcomes for the primary quarter of 2025. Income reached $15.6 million, and internet revenue got here in at $4.4 million. Over the previous yr, it has grown its asset base whereas additionally sustaining a wholesome payout ratio. In 2024, the belief posted $61.4 million in complete income and $33.9 million in internet revenue, greater than doubling its outcomes from the prior yr. It has additionally been strategic in recycling capital, together with the partial sale of a Montreal property for practically $28 million.
The belief at present yields about 8.7% yearly at writing, making it one of many extra enticing choices for income-seeking buyers. Its distribution of $0.52 has remained constant. Agency Capital has a market cap of roughly $220 million and has been quietly constructing worth whereas remaining underneath the radar of most buyers.
Backside line
Whereas no funding is totally resistant to market or geopolitical shocks, these two month-to-month payers have traits that make them extra defensive than most. Pizza Pizza Royalty faucets into steady shopper demand for reasonably priced meals. Agency Capital earns revenue from a mixture of tenants that present core companies, even in a downturn.
When you’re trying to generate regular money whereas uncertainty looms, whether or not it’s rate of interest swings, commerce wars, or broader world instability, month-to-month payers like these could be a sensible addition. These offer you revenue you possibly can rely on, even when inventory costs transfer up and down. And when others are panicking, that type of consistency may be precisely what helps you keep invested and keep calm.
