Investing in Canadian dividend stocks can be a good way to earn steady passive income, even if the stock market remains unpredictable. Notably, several fundamentally strong Canadian companies are popular for consistently paying and increasing their dividends for decades. The resilience of their payouts and management’s commitment to enhancing shareholder value via higher dividends make them popular choices for earning recurring passive income.
Leading Canadian bank stocks such as Bank of Montreal and Toronto-Dominion Bank have been paying dividends for over a century. Meanwhile, Canadian stocks like Fortis and Enbridge have been increasing their dividends for decades. These stocks are among the top investments to earn worry-free passive income.
The above Canadian corporations are undeniably solid investments to earn a steady passive income stream. However, for investors looking for a Canadian stock with monthly dividends and a high yield, there’s another option worth considering. A $10,000 investment in this monthly dividend stock could generate $776/year in passive income.
A top monthly dividend stock
Investors seeking monthly dividends could find Canadian real estate investment trusts (REITs) attractive for their high payout ratio and monthly distributions. Among REITs, SmartCentres Real Estate Investment Trust (TSX: SRU.UN) stands out for the durability of its payouts and ultra-high yield.
SmartCentres REIT owns and operates a high-quality real estate portfolio with a proven history of delivering solid same-property net operating income (NOI) and funds flow from operations in all market conditions. Thanks to its relatively resilient real estate properties, the REIT has managed to sustain and even grow its distributions over the years.
SmartCentres offers a monthly dividend of $0.154 per share, which translates into a high yield of over 7.8% based on its closing price of $23.77 on July 17.
Why Rely on SmartCentres REIT
SmartCentres presents a compelling opportunity for investors seeking stable monthly passive income. The REIT’s robust real estate portfolio, primarily comprising high-traffic retail centres, generates strong same-property NOI to support its distributions. The firm’s focus on retail properties adds stability to its financials, ensures consistent cash flow growth, drives occupancy rates, and boosts overall earnings.
The REIT’s strengths include high occupancy and tenant retention rates and a top-quality tenant base, including large retailers. Although SmartCentres’ occupancy temporarily dipped during the first quarter (Q1) of 2024, the company is experiencing increased leasing interest for both existing and newly constructed properties, which indicates a swift improvement in occupancy rates.
SmartCentres is also likely to benefit from robust lease extensions and renewals, contributing to rental increases. Impressively, SmartCentres also maintains a high cash collection rate.
Overall, the blend of its high-quality properties, robust leasing demand, and high occupancy rates provides a strong basis for future growth. Additionally, SmartCentres’ strategic capital allocation, efforts to reduce debt, significant undeveloped land bank, and emphasis on developing mixed-use properties to diversify its portfolio and tap into new growth opportunities will further strengthen its financials and support its payouts. These elements collectively indicate that SmartCentres is well-poised to increase shareholder value through consistent monthly dividend payments.
Earn $776 in Passive Income
SmartCentres REIT is a dependable choice for earning monthly dividend income. By investing $10,000, one can acquire about 420 shares of this REIT, which will generate $64.68 in monthly cash, or approximately $776 per year in passive income, as illustrated in the table below.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $23.77 | 420 | $0.154 | $64.68 | Monthly |
