That’s exactly why high-quality dividend stocks, especially those that pay investors monthly, are so attractive to Canadian investors.
That steady flow of money every month is a constant reminder that your hard-earned money is always working for you and generating returns.
It helps build confidence, makes it easier to sustain volatility and gives you flexibility. Furthermore, in addition to the mental benefits, the income you receive can replenish your cash flow or be immediately reinvested to accelerate the rate at which your portfolio grows.
Of course, as with any dividend stock, it is essential to ensure that the underlying business is high quality and reliable. You want a company that can hold up in tougher conditions, has at least some growth potential, and pays a dividend that is truly sustainable.
So, with that in mind, if you’re looking for a solid dividend stock to buy for 2026 to boost your portfolio’s passive income, Morguard North American Residential REIT (TSX:MRG.UN) is one worth watching.
Why is Morguard Residential one of the best monthly dividend stocks to buy right now?
If you’re looking for high-quality monthly dividend stocks, the real estate sector is often one of the best places to start.
High-quality Canadian REITs benefit from steady demand, consistent cash flow, relatively predictable costs and long-term growth potential. And residential real estate in particular is one of the most defensive sectors you can invest in.
And while there are a handful of high-quality residential REITs in Canada, Morguard stands out for its diversified portfolio. While many Canadian REITs only own properties in Canada, a significant portion of Morguard’s assets are actually located in the United States.
That geographic diversification is a huge advantage for Morguard, as it helps reduce risk while giving investors exposure to the faster-growing U.S. rental markets.
In total, Morguard owns a portfolio of 43 properties across North America, consisting of 42 multi-suite residential communities and one retail property. That includes 16 Canadian apartment communities in Alberta and Ontario, as well as 26 U.S. apartment communities across states such as Florida, Texas, Georgia, North Carolina and Virginia.
More importantly, occupancy rates on both sides of the border remain strong at around 95%, contributing to consistent cash flow and, ultimately, Morguard’s reliable monthly dividend.
A top passive income generator that is still undervalued
From a valuation perspective, Morguard is not terribly cheap. However, there are no high-quality Canadian stocks in this environment. So the fact that it’s still trading at a discount compared to its historical averages makes it one of the best dividend stocks to buy right now.
For example, the REIT currently trades at a price to adjusted funds from operations (P/AFFO) ratio of approximately 12.1 times. That’s less than the five-year average of about 13.6 times.
Furthermore, with Morguard trading off its 52-week high, it is dividend yield has increased to about 4.5%, which is slightly above the historical average of about 4.3%.
And most importantly, the payout is sustainable and continues to grow. Since 2021, the real estate stock has increased its dividend four times, including the most recent increase after the third quarter of this year.
So if you’re looking for a monthly dividend stock to buy now and hold for years, Morguard North American Residential REIT is certainly one of the best to consider.
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