Peyto Exploration & Development Offers Attractive 6% Monthly Yield

Amy Legate-Wolfe from The Motley Fool Canada suggests putting this year's entire TFSA contribution into Peyto Exploration & Development stock, which offers a nearly 6% monthly passive income.

The Canadian company trades at around $24.22 per share and pays $0.12 per share each month, resulting in an annualized dividend of $1.44 and a yield hovering around 6%. With the TFSA contribution limit set at $7,000 for 2026 by the Canada Revenue Agency, investing this amount would purchase approximately 289 full shares.

Peyto Exploration & Development's focus on controlling costs, owning infrastructure, and selling gas into several North American markets has contributed to its recent success. The company raised its monthly dividend by 9% from $0.11 to $0.12 per share, indicating confidence in its cash flow.

While investing entirely in Peyto Exploration & Development may pose some risks due to the natural gas industry's volatility, it could generate up to $416 in annual passive income for TFSA holders.