Top dividend-paying stocks with monthly payouts can be solid investments for passive income. Thankfully, a few fundamentally strong Canadian companies pay monthly dividends, which makes them attractive options for regular income. Against this background, let’s look at a Canadian stock that cuts you a monthly cheque.
Investors need to buy about 650 shares of this monthly dividend stock for $100 per month in passive income.
A top Canadian monthly dividend stock
Among the leading Canadian companies that pay monthly payouts, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) stands out for the reliability of its distributions and high yield. This real estate investment trust (REIT) owns defensive real estate assets, including retail shopping centres, mixed-use properties, and development lands.
These properties ensure steady demand and maintain high occupancy rates, contributing to stable cash flows that cover its monthly dividend payouts.
Currently, SmartCentres REIT pays out $0.154 per share in dividends every month. This translates to an attractive yield of over 6.8% based on its closing price of $27.01 (September 23, 2024).
Catalysts behind SmartCentres’s monthly dividends
The core driver behind SmartCentres’s monthly dividend payments is its portfolio of high-quality retail shopping centers. These properties attract strong customer traffic, leading to higher demand from tenants. Notably, many of SmartCentres’s tenants are large retailers with recession-resistant businesses, which ensures stable rent collection, and usually have long-term lease agreements. This solid tenant base contributes to the company’s high occupancy rates and consistent cash flow.
SmartCentres continues to experience strong demand from both existing tenants and new retailers. In the second quarter of 2024, its occupancy rate was an impressive 98.2%, reflecting the high demand for its properties. Additionally, the company has been able to renew leases at higher rents, further boosting its income. This combination of high occupancy and strong leasing momentum provides a stable foundation for long-term rental income.
SmartCentres is also diversifying its portfolio and expanding into mixed-use developments, which include residential, industrial, office, and self-storage properties, to accelerate growth. This diversification will likely accelerate its growth and create new income streams. With a robust pipeline of mixed-use projects, SmartCentres is well-positioned to continue delivering regular dividends to shareholders.
Thanks to its well-performing retail properties and expansion into mixed-use projects, SmartCentres will likely generate steady net operating income (NOI) and cash flow, which will comfortably support the company’s monthly dividend payouts.
Additionally, SmartCentres has a substantial land, offering opportunities for future development. Moreover, the REIT is strengthening its balance sheet and reducing debt, positioning itself for even stronger growth in the future.
Bottom line
SmartCentres REIT is well-positioned to continue delivering consistent dividends to its shareholders. Its high-quality retail properties, strong tenant demand, and diversified growth strategy ensure stable cash flow and future expansion. As the company continues to maintain high occupancy rates and grow through new developments, it will deliver solid long-term value to income-focused investors.
The table below shows that investors can earn $100 in monthly cash by buying 650 shares of SmartCentres REIT.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $27.01 | 650 | $0.154 | $100.1 | Monthly |
