Written by Rajiv Nanjapla at The Motley Fool Canada

Public pensions, including the Canada Pension Plan (CPP) and Old Age Security (OAS), may not cover all retirement expenses. Therefore, retirees often need additional income sources to meet their financial needs and maintain their desired lifestyles. Monthly-paying, high-yield dividend stocks can be an attractive option, providing a regular stream of passive income without requiring investors to sell their holdings. However, since dividends depend on a company’s financial health, cash flow generation, and management decisions, investors should focus on fundamentally strong businesses with a proven history of rewarding shareholders and sustainable growth prospects.

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