Investing in high-yield dividend stocks with monthly payouts can transform your portfolio’s income-generation potential. However, when choosing high-yield stocks, one should focus on companies with strong fundamentals, a solid record of regular dividend payments, and the ability to sustain their payouts in the long run.
Against this background, here is a TSX stock renowned for its reliable monthly dividend payments. This company offers a high yield of 7.2% and can sustain its payouts over the long term. This combination of high yield and reliability makes it an attractive option to bolster your portfolio’s income potential.
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The 7.2% monthly dividend stock
Among the leading Canadian companies offering monthly dividends, SmartCentres REIT (TSX:SRU.UN) stands out for its high and sustainable yield. Its payouts are supported by its diverse portfolio of 195 mixed-use properties, most of which are retail shopping centres. The REIT’s focus on grocery-anchored centers, which tend to be more resilient during economic downturns, adds stability to its operations. These tenants operate essential businesses, providing a stable stream of income even when broader market conditions become challenging.
SmartCentres has diversified its recurring revenue stream. In addition to its core rental income from retail, self-storage, office, apartment, and industrial properties, it has also tapped into income from condo and townhome developments. This dual-source recurring revenue model enables it to generate steady net operating income (NOI), regardless of economic cycles.
The company’s financial strength translates into attractive dividends for investors. As of May 1, 2025, SmartCentres offers a monthly dividend of $0.154 per share, amounting to approximately $1.85 annually. Based on the recent share price of $26.52, that’s a high yield of 7.2%.
SmartCentres to pay and maintain its dividend
SmartCentres’ focus on expanding its recurring revenue streams and growing cash flows will support its future payouts. Despite the macro uncertainty, the REIT’s retail portfolio continues to act as the anchor to cash flow. The continued stability, strong occupancy across its retail portfolio, and incremental growth through its mixed-use initiatives will support its long-term growth and monthly payouts.
Despite broader economic uncertainties, the REIT’s core retail assets remain strong, with occupancy reaching a five-year high of 98.7%. This resilience is further supported by impressive rental growth, up 8.8% on lease extensions (excluding anchors) and 6.6% overall. Cash collections remain above 99%, and same-property NOI continues to climb, supporting its cash flow.
Its recent deal with key tenants like Walmart and Costco will likely attract significant foot traffic to those locations, leading to higher new tenant demand and driving occupancy. Moreover, SmartCentres is also enhancing its tenant mix by introducing essential and lifestyle-focused services such as medical offices, childcare, fitness, and entertainment. These additions make its centres more convenient and attractive, boosting traffic and tenant demand. Its premium outlets are performing well, driving higher EBITDA and overall value.
SmartCentres’ strong balance sheet, consistent rental lifts, and diverse tenant base are expected to drive its growth through 2025 and beyond. Moreover, its vast underutilized landbank and a significant pipeline of mixed-use projects position SmartCentres to generate higher funds from operations (FFO), drive future payouts, and increase the REIT’s net asset value.
