The 7.3% Dividend Gem Every Passive Income Investor Needs to Know

For investors looking for reliable passive income, dividend-paying companies are among the cheapest and most reliable investments. However, dividend payments are not guaranteed. So passive income seekers should focus on companies with strong fundamentals, a sustainable track record of rewarding shareholders, and solid earnings to maintain payouts through all market cycles. These companies can consistently pay dividends and even grow them over time.

Against this backdrop, here’s a dividend gem offering a 7.3% yield that every passive investor should know about.

The dividend jewel of 7.3%

While the TSX has several high-quality dividend stocks, SmartCentres REIT (TSX:SRU.UN) stands out for its sustainable history of dividend payments, sustainable and high yields, and monthly payouts. With a current yield of over 7.3% and dividends paid monthly, it offers investors predictable income that feels more like a paycheck than a typical investment return. Whether you’re covering living expenses or simply reinvesting to grow your portfolio faster, these frequent payouts can be incredibly rewarding.

SmartCentres’ dividend payments are reliable and supported by its high-quality real estate portfolio. The Real Estate Investment Trust (REIT) owns 197 mixed-use properties across Canada, with a strong presence in densely populated areas where people shop, live and work. High-traffic locations translate into consistent tenant demand, keeping occupancy rates high and rental income flowing steadily.

Furthermore, the REIT benefits from its high-quality tenants. The portfolio is currently heavily weighted towards essential retail. Many of the properties are located at well-known national retailers that Canadians frequent. These companies continue to perform even during economic slowdowns. With tenants that are typically recession-resistant, SmartCentres benefits from stable revenues and reliable cash generation year after year.

Overall, rising rental income, resilient tenants and a high-quality real estate base allow the REIT to generate high net operating income (NOI), which in turn supports continued dividend payments.

Earn $154 per month in passive income with this dividend gem

SmartCentres REIT has a long track record of paying stable monthly dividends. The company’s core retail portfolio continues to perform well, while its growing mixed-use development pipeline adds meaningful potential for future expansion. The REIT’s latest third quarter (Q3) results underline that momentum and indicate sustainable cash flow that can support dividends for years to come.

It is notable that the occupancy rate for SmartCentres remained exceptionally strong at 98.6% in the third quarter. This reflects continued demand from retailers and gives the REIT room to optimize its tenant mix and increase rental income. Same property NOI continued to rise, supported by healthy leasing trends. Excluding key tenants, NOI grew 4.6% this quarter. Renewal activity has also been impressive, with nearly 85% of 2025 expirations already locked in at higher rents, and rent collections holding steady at around 99%.

SmartCentres is also refining its tenant base by adding stronger brands and improving retail formats within its existing properties. These measures will contribute to stable and growing profits. In addition to retail, the REIT is making meaningful progress in mixed-use development, responding to demand for urban living and creating new long-term revenue streams. The significant land bank and solid balance sheet provide a foundation for multi-year growth and continued dividend stability.

SmartCentres is an attractive stock for investors with passive income. Buying 1,000 shares of this REIT today would generate approximately $154 per month in passive income, based on the current monthly payout of $0.154 per share.