Despite looming trade tariffs, economic uncertainties and Canadian political shifts in 2025, one reality remains constant: monthly bills need to be paid. For investors seeking reliable income streams, TSX dividend stocks — particularly those offering monthly distributions — can provide peace of mind in turbulent times.
While monthly dividend payers are relatively rare on the TSX outside of real estate investment trusts (REITs), income trusts, and monthly income-oriented exchange-traded funds (ETFs), savvy investors have options. Here are two compelling yet lesser-known income opportunities that deserve attention: Canadian Net Real Estate Investment Trust (TSXV:NET.UN) and Purpose Credit Opportunities Fund ETF (TSX:CROP).
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Buy Canadian Net REIT for monthly “safe” monthly distributions
Sometimes, the best opportunities come in smaller packages. Canadian Net REIT, with its $108 billion market cap, manages a portfolio of 94 single-tenant retail properties. What makes this REIT stand out is its low-risk leasing strategy and impressive 100% occupancy rate, positioning it as an attractive monthly income investment for 2025.
The REIT currently offers a healthy 6.5% annual yield through monthly distributions. While recent strategic property recycling led to a 6% year-over-year decrease in funds from operations (FFO) during the first nine months of 2024, reduced maintenance costs actually improved the trust’s adjusted FFO (AFFO) by 1%. AFFO is a crucial cash flow metric that better reflects a REIT’s ability to maintain its monthly distributions.
With an AFFO payout ratio of just 62% for the same period, Canadian Net REIT boasts one of the safest distribution rates among its top REIT peers. The trust’s October 2024 acquisition of a single-tenant grocery property in Nova Scotia should boost revenue in 2025. Additionally, its conservative debt ratio below 30% provides ample room for growth as interest rates decline.
Purpose Credit Opportunities Fund ETF
For investors seeking professional management of credit assets, the Purpose Credit Opportunities Fund ETF offers an intriguing monthly income option. The fund’s popularity is evident in its recent growth, attracting over $70 million in the past year and reaching $194 million in assets under management by early 2025.
Why are Canadian investors falling in love with the monthly dividend ETF? The Purpose Credit Opportunities Fund ETF makes monthly income distributions that currently yield 5.6% annually. It delivered an impressive 12.9% total return over the past year — a standout performance in the fixed-income space. The ETF’s portfolio, managed by award-winning Purpose Investments Partners, maintains a 62.4% allocation to U.S. credit securities, potentially offering a hedge against domestic economic uncertainty.
The portfolio’s diverse holdings include 45% in high-yield bonds, 20% in government issues, and the remainder in preferred stocks and equities. While the 2.03% management expense ratio might seem high, it reflects the intensive research and transaction costs required for active management in complex North American credit markets.
Importantly for Canadian investors, this monthly income ETF qualifies for registered investment accounts, adding tax-efficiency benefits to its attractive yield profile.
Investor takeaway
The Canadian Net REIT and the Purpose Credit Opportunities Fund ETF are two investments that offer Canadian investors distinct approaches to generating monthly income — whether through stable real estate assets or professionally managed credit portfolios. As we navigate through 2025’s increasingly uncertain Canadian economic landscape, both options merit consideration for income-focused portfolios.
