Buy 195 shares of this top dividend stock for $57/month in passive income

When it comes to earning passive income every month, Canadian real estate investment trusts (REITs) provide a stable source of income. The Canadian real estate market is strong and the organized structure of REITs allows you to earn rental income without the hassle of managing the property and tenants. You can even have a diversified pool of REITs that focus on different real estate mixes from residential, industrial, retail, commercial and warehouse. A house can give you a rental yield of 2.5% on the purchase price, but a residential REIT gives a higher dividend yield.

A top dividend share for a monthly passive income

Granite REIT (TSX:GRT.UN) is one such stock. It is one of the few Canadian REITs that has increased its distribution per share annually over the past fifteen years, despite macroeconomic headwinds. The company’s resilience stems from its diversified portfolio of 134 income-producing properties across North America and Europe. Six more properties are under development.

Approximately 70% of Granite’s properties are for distribution and e-commerce, with the remaining 30% for warehouses and specialty uses. It continues to acquire and develop new properties that meet the needs of e-commerce, such as cold storage, multi-level fulfillment and transportation facilities. The REIT focuses on properties with lower capital expenditures and room for expansion and redevelopment. This way it can modernize its properties to meet changing e-commerce trends.

The REIT’s largest tenant is Magna Internationalwhich leases 20% of the gross leasable area and contributes to 27% of the REIT’s annual turnover. Over the years, the REIT has reduced its dependence on Magna from 90% in 2012 and will continue to do so. The top 10 tenants account for 46% of the annual rent. This explains the country’s resilience to the macro crisis.

On the balance sheet, Granite has lower debt than the sector average. Its net debt stands at 35% of the fair market value of its properties, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) is 5.1 times borrowing rates as of October 31, 2025. This shows that it can comfortably service its debt even in a lean period.

Buy 195 shares of this top dividend stock for $57/month in passive income

Granite REIT has been paying and even growing its distributions annually by expanding its income-producing properties and reducing debt. This helped reduce the dividend payout ratio from 79% of funds from operations (FFO) in 2019 to around 58% in 2025, while increasing dividends by an average of 3% annually. Such strong numbers show that the REIT can finance most of its developments and also grow dividends during lean periods when occupancy rates fall.

For 2026, Granite has increased its dividend per share by 4% to $3.55. So if you buy 195 units of Granite REIT now, you can get a total passive income of $692.25 or $57 per month for the next twelve months. The REIT is currently trading above $76 and could yield a yield of 4.7%, which is better than what you’d get if you rented a house.

Takeaway for investors

The best thing about the REIT is that the payout starts immediately from next month and does not take hundreds and thousands of dollars. So for $57 a month, you’ll pay about $15,000 to buy 195 shares. If the REIT grows its distribution at 4%, your passive income will adjust for inflation.

If you don’t need the money, you can use the dividends to buy more granite units and increase your passive income.