Income investors who like to capitalize on shareholder dividends prefer to invest in companies that can offer them monthly payments at decent returns. Many listed companies TSX provide their investors with shareholder dividends, but most make quarterly payments.

If you want to generate monthly income from your investments, I will discuss two dividend stocks in which you could invest today for a reliable monthly income. The companies I am going to talk about have a reputation for offering their shareholders regular dividends and resilient cash flow to comfortably fund future payments.

AltaGas

AltaGas (TSX: ALA) is a low risk company that owns and operates a portfolio of utility assets that generate predictable cash flows. The company provides its shareholders with monthly dividends which are comfortably funded by its predictable income. AltaGas stock is trading at $ 26.20 per share at the time of writing, offering a hefty dividend yield of 3.82% that is virtually guaranteed.

Operating in a highly regulated industry, you can expect AltaGas to continue to provide you with regular and virtually guaranteed monthly payments. The company’s growing rate base and high-growth middleman businesses can enhance its performance and accelerate its growth for years to come, providing investors with significant wealth growth through long-term capital gains.

Renewable energies TransAlta

Renewable energies TransAlta (TSX: RNW) is another great stock to consider if you’re looking for a stock that pays monthly dividends. TransAlta Renewables has grown its dividends at a compound annual growth rate (CAGR) of 3% over the past eight years and has a sustainable payout ratio. The stock trades at $ 19.91 per share at time of writing and pays monthly dividends at a hefty 4.72% annual dividend yield.

The company relies on its highly contractual renewable power generation assets to generate revenue and cash flow. As the demand for renewable energy increases over the years, the company will only grow its revenue in the years to come. You can expect the company to continue to generate strong shareholder returns through potentially larger monthly dividends, capital gains, and future dividend payouts.

Stupid takeaways

Becoming a stock market investor who earns a large amount of passive monthly income doesn’t necessarily mean that you need a lot of money to get started. Provided you can find the right assets, start investing early, and contribute regularly to your investment portfolio, it is possible to reach a point where you can earn substantial passive income.

With monthly dividend stocks like AltaGas and TransAlta Renewables, you can consider reinvesting your dividend income through a dividend reinvestment plan to unleash the power of compounding to accelerate your wealth growth.

You can then start collecting cash dividends when you reach a point where you earn enough monthly passive income of your investments.

Foolish contributor Adam Othman has no position on the stocks mentioned. The Motley Fool recommends ALTAGAS LTD.