Investing in shares of dividend-paying companies can help you generate regular passive income, even when the market remains volatile. Fortunately, the TSX features several fundamentally strong companies with impressive dividend payment histories and growth potential, making them attractive choices for earning recurring passive income.
Take, for instance, Toronto-Dominion Bank (TSX:TD). This leading Canadian bank has been paying dividends uninterruptedly for about 167 years. On average, this financial services giant has increased its dividend by 10% since 1998. The bank’s commitment to returning higher cash to its shareholders shows its ability to grow earnings and the resiliency of its payouts.
Similarly, Fortis (TSX:FTS) ) is another lucrative stock to start a passive income that will grow with you. This Canadian electric utility company has increased its dividend for 50 consecutive years. Further, the utility giant anticipates continuing this trend in the coming years.
While both these companies are undeniably great investments to start a passive income stream, I’ll restrict myself to a Canadian stock that offers the added advantage of monthly dividend payments and an attractive yield.
With this in the backdrop, let’s explore a stock that provides monthly cash.
A top stock for monthly cash
Canadians can turn to real estate investment trusts (REITs) for monthly income. Among top REITs, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) appeals the most owing to the resilience of its payouts and ultra-high yield.
SmartCentres REIT boasts a high-quality real estate portfolio, which has proven resilient across various market conditions. The REIT has managed to sustain and even grow its distributions over the years, highlighting its operational strength and efficient asset management.
SmartCentres currently pays a monthly dividend of $0.154 per share, reflecting a yield of over 8.3% based on its closing price of $22.41 on July 9.
SmartCentres is a reliable dividend stock
SmartCentres’ monthly distributions are well-supported by a resilient real estate portfolio (high-traffic centres) that generates solid same-property net operating income (NOI). For instance, the REIT holds interests in 193 properties, including 155 retail properties. This higher mix of retail properties adds stability to its cash flows, drives its occupancy rate, and supports earnings.
SmartCentres also benefits from its high tenant retention rates and a top-quality tenant base, which includes leading North American retailers. Further, the REIT’s management highlighted during the first quarter (Q1) conference call that lease extensions or renewals remain strong, leading to rental increases. Moreover, its cash collection rate remained high at 99%.
While SmartCentres’ occupancy was temporarily reduced during the first quarter, the company is witnessing stronger leasing interest for its existing and newly built properties. This means that its occupancy rate is likely to improve quickly.
The REIT’s high-traffic properties, strong leasing demand, and solid occupancy bode well for future growth. Furthermore, the company’s strategic capital allocation and debt reduction are encouraging. Additionally, SmartCentres is focusing on developing mixed-use properties to tap into new growth opportunities. All these factors suggest that SmartCentres is poised to enhance its shareholders’ value through regular monthly dividend payments.
Earn $154 per month
SmartCentres REIT is a reliable stock to earn monthly dividend income. The table below shows that investors can earn $154 in monthly cash by purchasing 1,000 shares of this REIT.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $22.41 | 1,000 | $0.154 | $154 | Monthly |
