The first four months of 2025 have highlighted just how sensitive global markets remain to macroeconomic shocks, trade disruptions, and shifting central bank policies. With volatility gripping the market, many TFSA (Tax-Free Savings Account) investors are wisely shifting their focus from growth to income. REITs (real estate investment trusts), especially those with stable payout histories, could offer cautious investors a valuable defensive backbone.
In this article, I’ll talk about a top monthly income REIT stock offering a rock-solid 6.8% yield that TFSA investors can consider buying right now.
A top monthly income stock with 6.8% dividend yield
The top TSX stock I want to highlight here is none other than RioCan Real Estate Investment Trust (TSX:REI.UN), a company that’s known for reliable monthly payouts and long-term stability. Based in Toronto, it mainly focuses on owning, managing, and developing mixed-use, retail-heavy properties in high-density urban areas, including grocery-anchored plazas, open-air shopping centres, and residential rental buildings. Its portfolio spans about 187 properties with a total net leasable area of roughly 33 million square feet.
After witnessing a 5.6% decline over the last year, RioCan stock trades at $17.02 per unit, giving it a market cap of $5.1 billion. And what really grabs the attention of income-focused investors is its juicy 6.8% annualized dividend yield, which is paid out monthly.
What’s behind the recent dip?
Over the past year, RioCan stock has been on a bit of a rollercoaster. Much of that weakness has come from broader real estate market concerns due to high interest rates and retail tenant uncertainty. And recently, the credit protection filing by Hudson’s Bay Company (HBC), its key joint venture partner, led to a valuation hit of over $208 million for RioCan in the latest quarter. But despite these headwinds, RioCan’s long-term fundamentals continue to look solid.
Recent financial momentum
In the most recent quarter ended March 2025, the REIT reported an 8.9% YoY (year-over-year) rise in its funds from operations (FFO) to $0.49 per unit. This growth was driven by solid leasing activity and improved occupancy across RioCan’s commercial properties.
In fact, its commercial same-property quarterly net operating income climbed by 3.6% from a year ago, helped by strong demand for space and rising rental rates. Similarly, RioCan’s retail occupancy hit 98.7% last quarter, showing just how much tenants value its high-traffic, well-located properties. Even its residential rental segment NOI jumped by 18% YoY to $7.5 million.
What makes it a great pick for TFSA investors?
Besides its strong financials, RioCan is making smart moves like monetizing residential assets, which is helping it lock in gains on developed projects and freeing up capital for higher-return opportunities. On top of that, RioCan is staying proactive with its balance sheet. It recently issued $550 million in unsecured debentures at favourable interest rates, giving it more flexibility to handle debt maturities and future growth.
Moreover, its strong liquidity position and focus on urban, necessity-based retail make it a defensive stock that still offers upside. So, for TFSA investors looking for steady monthly income and exposure to Canada’s top urban markets, RioCan REIT could be a great stock to own.
