A 6% dividend share paid out every month

Monthly dividends change when the markets feel choppy. Instead of waiting for a quarterly check, you get a steady trickle of cash that you can use to pay bills, restock groceries, or buy more units. Reinvestments happen faster, which can give compounding a boost. The best monthly payers also provide a calmer feeling in choppy markets, because you’ll see progress even when prices wobble. In a Tax Free Savings Account (TFSA), these payments go tax-free, so you can reinvest right away or let the money build up for a future vacation or an emergency fund. So let’s take a look at some to consider.

REI

RioCan Real Estate Investment Trust (TSX:REI.UN) owns and manages a large portfolio of Canadian retail-focused real estate, with a strong emphasis on major urban markets. The properties are usually located in places where people are already shopping, keeping tenants busy and rent flowing. The trust also has mixed-use ambitions, but the core story remains simple. It collects rent from daily retail businesses and uses that money to pay unit holders.

It seems relevant now because Canadian REITs are at the intersection of two major forces. Interest rates can reduce financing costs, while stable visitor traffic supports occupancy and rental growth. RioCan’s latest update shows that the store occupancy rate is at 98.4% and the overall committed occupancy rate is at 97.8%. These numbers suggest that renters still want the space, even as the market worries about the economy.

The unit price has also told a classic REIT story over the past year. Lots of back and forth, with more patience than adrenaline. RioCan has traded between about $15.46 and $20.08 over the past 52 weeks, recently up about 3% over the past year. It explains why the returns you see in the headlines can fluctuate.

In income

Now let’s look at the latest profit figures, because that is where confidence is being built up again. In the third quarter of 2025, RioCan reported fund from operations (FFO) per unit, diluted, of $0.46, which was consistent with the prior year quarter. It also reported an FFO payout ratio of 60%. That combination suggests that the distribution is based on cash flow and not on wishful thinking.

Valuation looks more interesting when you compare the price to what the properties could be worth. RioCan reported a net book value per unit of $24.19 as of September 30, 2025. Since the units are around $19 at the time of writing, the market has priced them below book value. The book value doesn’t promise anything, but could indicate a margin of safety if sentiment sours.

Looking ahead, RioCan tried to be unusually clear about what it wants to achieve. At its 2025 investor day, it targeted core FFO per unit growth of around 3.5% between 2026 and 2028, and 5% over the long term. This guidance does not eliminate the risk, but it does indicate a return to steady growth. The main risks are still in the usual places: refinancing costs, a weaker consumer or a slowdown in retail growth putting pressure on leasing.

In short

That’s why REI.UN can be a strong dividend stock for Canadians, especially within a TFSA. It pays monthly, operates at a very high occupancy rate, and supports payout with FFO. And right now, that dividend can yield quite a bit from a $7,000 investment.

Now the unit price still responds to tariff chatter, so you need a long horizon and a steady stomach. But if you want reliable income and a chance at price recovery when the interest rate cycle becomes friendlier, RioCan can get the job done and keep sending you cash while you wait.