Investors seeking immediate income can consider investing in top dividend-paying Canadian stocks. Fortunately, several fundamentally strong Canadian stocks pay dependable dividends, making them reliable investments for starting a worry-free passive income stream.
For example, energy giants like Enbridge and Canadian Natural Resources have consistently increased their dividends for decades. Similarly, utility companies such as Canadian Utilities and Fortis have a remarkable track record of paying and raising dividends for over 50 years. Meanwhile, major banks like Toronto-Dominion Bank and Bank of Montreal have rewarded investors with dividends for over a century.
While these Canadian stocks offer quarterly payouts and are a no-brainer for income-seeking investors, I’ll focus on a monthly dividend-paying stock suitable for immediate income. It also provides an attractive yield.
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Top pick for immediate income
Among the leading companies paying monthly dividends, SmartCentres REIT (TSX:SRU.UN) remains my top pick for immediate income. It is one of Canada’s largest fully integrated REITs and is known for its solid dividend payment history, dependable payouts, and attractive yield.
SmartCentres owns and operates a diverse portfolio of 195 mixed-use properties, primarily retail shopping centres. The company’s extensive portfolio of grocery-anchored shopping centres adds resilience to its financials, as its tenants own recession-resilient businesses. Thanks to its defensive portfolio and high demand for its real estate, SmartCentres generates solid net operating income (NOI) in all market conditions that support its monthly payouts.
SmartCentres REIT currently offers a monthly dividend of $0.154 per share. This equates to a compelling yield of about 7.2% based on its closing price of $26.65 (as of March 3, 2025).
SmartCentres to sustain its high yield
SmartCentres REIT is well-positioned to sustain its high yield thanks to consistent growth in net operating income (NOI). The company’s strategically located retail properties attract high foot traffic and maintain strong customer retention. Further, the demand from new and existing retailers continues to push occupancy rates higher, with lease renewals increasing as well.
As of the fourth quarter of 2024, SmartCentres achieved an impressive 98.7% occupancy rate, up from 98.5% in the previous quarter. Notably, about 5.5 million square feet of space matured in 2024, with tenant retention surpassing 91%, a significant achievement that highlights the attractiveness of its portfolio. Additionally, rental spreads hit 8.8%, reflecting the growing value of its portfolio. Cash collections remained exceptionally strong, exceeding 99% for the quarter.
This positive leasing momentum, particularly in retail and mixed-use properties, is expected to fuel rental income in the coming quarters. With new tenant demand rising and renewal rates trending favourably, SmartCentres is well-positioned to sustain its NOI growth and dividend payouts.
Bottom line
SmartCentres is well positioned to deliver solid NOI, led by its solid core retail properties and long-term leases. Further, it is focused on diversifying its revenue streams through its mixed-use properties. By integrating residential, self-storage, and industrial spaces into its portfolio, SmartCentres is expanding its income base, which will drive long-term growth and add stability.
Additionally, the company has an extensive land bank, which provides significant opportunities for future expansion.
Overall, SmartCentres’ resilient real estate portfolio, continued demand, strong renewal trends, solid cash collection, and high occupancy rate position it well to enhance its shareholders’ value through regular monthly payouts.
