Among the top dividend payers, monthly dividend-paying Canadian companies are an attractive option for income-oriented investors. They function like a stable paycheck and provide predictable cash flow for those who rely on dividend income for their daily expenses or who want to reinvest their earnings more often. For long-term investors, more frequent reinvestments can also promote compounding, supporting stronger returns over time.
But when choosing monthly dividend stocks, consider companies with solid fundamentals. Companies with strong balance sheets, long track records of dividend payments, sustainable payout ratios and consistent earnings growth are reliable sources of stable income.
Against this backdrop, here’s a Canadian dividend stock that pays cash every month. Furthermore, this dividend payer offers a high yield of 7%, making it an attractive income stock.
SmartCentres REIT offers a 7% yield
The top monthly dividend stocks include SmartCentres REIT (TSX: SRU.UN) is a top option for a fixed income. The strong history of dividend payments and high returns make the Real Estate Investment Trust (REIT) an attractive choice for passive income.
What underpins this REIT’s payouts is the resilience of the underlying real estate. SmartCentres owns 197 mixed-use properties positioned in high-traffic, densely populated markets. These are the types of locations where tenant demand remains stable, driving occupancy rates and rental income.
Furthermore, SmartCentres REIT’s portfolio is heavily focused on essential retail, anchored by national brands that Canadians rely on every day. These are defensive tenants with businesses that do not see demand disappear during recessions. Their stable turnover ensures that SmartCentres’ cash flow remains predictable year after year.
The REIT’s solid real estate portfolio, high occupancy rates and rising rental income position the REIT well to generate strong net operating income (NOI), which supports stable payouts. SmartCentres REIT currently pays $0.154 per share monthly, yielding more than 7%.
This monthly dividend share will support his payouts
SmartCentres REIT is well positioned to maintain its monthly dividend payments thanks to the strong performance of its core retail assets and its growing mixed-use development pipeline. The REIT’s latest third-quarter results reflect that momentum, with operating numbers pointing to healthy, sustainable cash flow growth ahead.
Tenant demand across the portfolio remains solid, allowing SmartCentres to maintain high occupancy rates. At the end of the third quarter, the REIT’s occupancy rate was 98.6%. This reflects the strong demand for its properties and provides flexibility to improve the tenant mix, driving future rental income.
Same property NOI continued to rise, reflecting the continued strength of underlying leasing activity. The REIT delivered growth of 4.6% in the quarter, excluding tenants, and 5.9% year-to-date, translating into a healthy overall gain of 3.7% so far this year. The innovation activities were also very encouraging. With an expected term of 5.3 million square meters in 2025, SmartCentres has already renovated almost 85% by the end of the third quarter, achieving an attractive rental spread of 8.4%, excluding anchors (6.2% in total). Rent collections remain strong and reliable at approximately 99%.
The REIT continues to refine its portfolio by adding higher quality retailers and expanding store formats within existing properties. These initiatives are intended to support stable, growing earnings and reliable dividend payments.
At the same time, SmartCentres is accelerating investments in mixed-use development. This strategic diversification gives SmartCentres a long path to growth as it responds to urbanization trends and changing consumer lifestyles. Backed by a significant land bank and a solid balance sheet, the REIT is laying the foundation for multi-year growth and stable distributions.
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