Top Canadian dividend stocks are a reliable source of passive income. For instance, leading utility companies like Fortis and Canadian Utilities have increased their dividends for over 50 consecutive years, making them dependable investments to generate stress-free income.
Further, companies like Canadian Natural Resources and goeasy are increasing their dividends at a significant pace. This rapid growth makes them attractive investments for those seeking to boost their passive income streams.
While these Canadian stocks are excellent choices for consistent income, let’s dive into a fundamentally strong company that offers monthly dividend payments. Investing in stocks that pay dividends every month can help align your income with your monthly expenses. By reinvesting those dividends, you can significantly enhance your returns over time.
With this background, let’s look at a top dividend stock that pays cash every month.
Top monthly dividend stocks
When it comes to monthly dividend stocks on the TSX, SmartCentres REIT (TSX: SRU.UN) emerges as a notable player, thanks to the durability of its distributions and attractive, sustainable yield.
The REIT has a diverse portfolio of 195 properties, including retail shopping centres, mixed-use developments, and land earmarked for future projects. Notably, a significant portion of its portfolio consists of grocery-anchored shopping centres, which adds a layer of stability to its operations and helps drive its net operating income (NOI) and funds from operations (FFO) in all market conditions.
Currently, SmartCentres pays a monthly dividend of $0.154 per share, equating to a compelling yield of about 7% based on its recent closing price of $26.09 (as of October 18, 2024).
The outlook for SmartCentres’ payouts
SmartCentres is well-positioned to continue enhancing its shareholder value through consistent monthly payouts. The company’s strategically located retail properties generate high traffic and maintain customer retention. Further, the strong demand from existing and new retailers contributes to high occupancy rates and increased renewal rates, fueling the need for more locations and larger expansions.
It’s worth noting that SmartCentres’ occupancy rate stood at 98.2% at the end of the second quarter (Q2) of 2024. Moreover, its retail properties boast a high rent collection rate of about 99%. During its recent Q2 conference call, management indicated that leasing demand and momentum in renewal rates are expected to persist in the coming quarters, which should positively impact its NOI and dividend payouts.
Additionally, SmartCentres is diversifying its income streams through mixed-use properties, incorporating residential, self-storage, and industrial formats. This diversification is poised to enhance its recurring income and support future growth.
SmartCentres will likely benefit from long-term contracts with retailers, high demand for its assets, and its solid pipeline of mixed-use properties. The company also has a significant land bank, with less than 25% of its land currently utilized, leaving plenty of room for future growth.
The bottom line
With its resilient business model, high dividend yield, strong occupancy rate, and future growth potential, SmartCentres REIT is a compelling stock for generating recurring monthly income.
Moreover, the table below shows that investors can earn a steady monthly income of $154 by buying 1,000 shares of this REIT.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $26.09 | 1,000 | $0.154 | $154 | Monthly |
