Adding top Canadian dividend-paying stocks to your portfolio can be a smart move to generate steady passive income. For instance, top TSX dividend stocks such as Fortis (TSX: FTS) and Enbridge (TSX: ENB) have consistently paid and increased their distributions for decades, making them reliable investments.
However, while these dividend giants are excellent choices, they follow a quarterly payout schedule. If you’re looking for a TSX stock that provides monthly income, there’s an alternative that deserves attention. Not only does this stock offer frequent payouts, but it also has fundamentally strong business and offers an attractive yield of approximately 7.1%. Let’s take a closer look.
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A compelling monthly passive-income stock
While several TSX stocks offer monthly dividends, SmartCentres REIT (TSX: SRU.UN) could be a solid addition to your passive income portfolio. Its steady payouts and sustainable yield will enable investors to generate substantial passive income over time.
The real estate investment trust (REIT) operates 195 mixed-use properties, including a substantial number of retail shopping centres. Many of its core retail properties are anchored by essential businesses like grocery stores, which continue to perform well regardless of economic conditions. This ensures steady occupancy rates, reliable rent collection, and solid net operating income (NOI). As a result, SmartCentres has delivered reliable monthly dividends to its shareholders over time.
Currently, the REIT pays a monthly dividend of $0.154 per share, which works out to an impressive 7.1% yield based on its recent stock price of $25.87 (as of March 7, 2025).
SmartCentres to deliver steady monthly cash
The stability and strong occupancy across its retail portfolio, as well as incremental growth opportunities through its mixed-use developments, position SmartCentres well to return steady monthly cash to its shareholders.
The company’s core retail properties have been performing exceptionally well, driven by strong tenant demand, high traffic, and impressive retention rates. This has translated into solid same-property net operating income (NOI) growth, demonstrating the resilience of its retail portfolio.
In the fourth quarter of 2024, SmartCentres’s occupancy reached a five-year high of 98.7%, with nearly 200,000 square feet of vacant space leased. Same-property NOI rose by 3.8% year over year, while rental spreads excluding anchor tenants increased by 8.8% — a clear sign of rising demand and the growing value of its properties. SmartCentres retained over 91% of its tenants in 2024, marking a significant improvement and reflecting its ability to generate stable rental income. Cash collections remained robust, exceeding 99%, highlighting the quality of its tenant base and lease agreements.
Beyond traditional retail, SmartCentres is evolving into a diversified real estate powerhouse. The company has been integrating additional services, including medical offices, daycare centers, pet stores, and fitness facilities, making its properties more attractive to tenants and shoppers. Its premium outlet centers, in particular, continue to drive strong foot traffic and tenant sales, further boosting EBITDA and increasing the REIT’s overall value.
Looking ahead to 2025 and beyond, SmartCentres is expanding its mixed-use development portfolio, incorporating residential, industrial, and self-storage properties. This diversification enhances long-term growth prospects while ensuring a stable and growing income stream.
With strategic advantages such as high occupancy, solid retention rate, and a vast land bank for future development, SmartCentres remains well-positioned to continue delivering consistent payouts.
