Monthly dividends make that even better, because the income starts to feel like a monthly paycheck instead of a quarterly surprise. If your $20,000 investment can generate about $104 each month, this gives your portfolio steady cash flow without having to sell shares. But the story doesn’t just end with the dividend. The business model, underlying fundamentals, balance sheet and long-term growth plans are all equally important.
In this article, I’ll highlight one of the best Canadian monthly dividend stocks that combine consistent income with sustainable growth engines, and explain why this stock deserves attention right now.
A high monthly income stock to buy in Canada
The monthly dividend share I’m talking about is RioCan Real Estate Investment Trust (TSX:REI.UN), a leading Canadian REIT (Real Estate Investment Trust) with a long history of paying stable income to investors. Headquartered in Toronto, this trust owns, develops and operates retail and mixed-use properties across Canada. The strong portfolio is anchored primarily by need-based tenants such as supermarkets, pharmacies and value retailers, keeping real estate demand stable even during uncertain economic periods.
RioCan stock is currently trading at $18.58 per share with a market cap of approximately $5.5 billion. It rewards investors with monthly dividends and offers an annualized yield of just over 6.2% at the current market price. This yield gives it the ability to turn a $20,000 investment into approximately $104 in monthly passive income.
Recent performance reflects operational strength
Before buying a stock for its monthly dividends, it’s important to see if the underlying business holds up.
RioCan shares are up nearly 9% over the past eight months thanks to strong operating results in recent quarters. In the third quarter of 2025, the company’s commercial real estate net operating income (NOI) grew 4.6% year-over-year (year-over-year) thanks to higher rents and strong leasing activity.
The occupancy rate of the stores was 98.4%, indicating continued demand for the properties. Meanwhile, spreads for new leases reached 44.1%, reflecting the trust’s ability to capture market rental growth across its portfolio despite ongoing macroeconomic uncertainties.
Financial trends support monthly dividend payments
In the first nine months of 2025, RioCan’s funds from operations (FFO) rose nearly 6% year-over-year to $1.42 per unit. This increase was mainly due to strong growth in NOI of owner-occupied properties and increases in unit repurchases, even though higher interest costs provided some pressure.
More importantly, the FFO payout ratio was approximately 61%, leaving a healthy margin to support the monthly payout. Although the trust’s net profit was affected by valuation losses related to the former Hudson’s Bay Company (HBC) facilities, this did not weaken its core cash generating capacity.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| RioCan REIT | $18.58 | 1,076 | $0.0965 | $103.83 | Monthly |
| Prices as of December 19, 2025 |
A long-term strategy adds visibility to future revenue
In November 2025 RioCan outlined a simplified, retail-focused strategy for sustainable growth. The trust expects long-term core FFO per unit growth of approximately 5%, with average growth of approximately 3.5% between 2026 and 2028 due to near-term refinancing.
In addition, it plans disciplined capital recycling of $1.3 billion to $1.4 billion through the sale of non-core assets. This approach could help RioCan REIT strengthen its balance sheet, fund reinvestments in high-quality retail properties and support predictable cash flows that will continue to support its monthly dividends.
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