When it comes to putting your hard-earned capital to work, there’s no question that dividend stocks are some of the best investments you can make for the long haul. Not only are they typically more resilient during periods of volatility, but they also provide consistent cash flow that you can count on. That’s why some of the top dividend stocks to buy today are Canadian real estate investment trusts (REITs), especially if your goal is to generate passive income every single month.
Monthly dividend stocks have a key advantage over those that pay quarterly. By receiving cash flow more frequently, you can reinvest that income sooner and take full advantage of compounding over time. It’s a small difference that adds up significantly in the long run.
So, if you’re looking for high-quality Canadian REITs to buy for monthly income, here’s why CT REIT (TSX: CRT.UN), which currently yields 5.9%, is my top pick right now.
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One of the best Canadian REITs to buy for monthly income
The real estate sector has plenty of high-quality dividend stocks, especially if you’re looking for monthly income. And while there are several strong options, there are a few key reasons why CT REIT stands out as the best of the bunch.
First is CT REIT’s relationship with Canadian Tire. Canadian Tire isn’t just the REIT’s majority owner. It also accounts for roughly 90% of CT REIT’s rental revenue.
That’s a major advantage because Canadian Tire is one of the most well-known and trusted brands in the country. It’s been in business for over a century, operates 10 retail banners, and has nearly 12 million loyalty members. That kind of stability from a tenant is exactly what you want in a REIT.
This relationship has helped CT REIT keep its revenue consistent, even during difficult periods like the pandemic, when many other retail REITs were facing headwinds. It also creates plenty of long-term growth potential as Canadian Tire continues to invest in its operations and expand its footprint.
That growth includes the development of new properties, upgrades to existing locations, and steady rent escalators. While CT REIT might not see explosive expansion, it’s consistently growing, which is exactly what it has delivered over the past decade.
That consistency, along with its strong foundation, is a big part of why it’s one of the best Canadian REITs to buy and hold for the long term.
Why CT REIT is such an excellent long-term investment
CT REIT continues to perform well, and its close relationship with Canadian Tire has helped it deliver strong and reliable results year after year.
In fact, right now, its occupancy rate is 99.4%, and 96.3% of its annualized base rent comes from investment-grade tenants. It also has one of the longest weighted average lease terms in the sector at 7.5 years. And with 377 properties totalling 31 million square feet of gross leasable area, it’s well diversified across its portfolio.
Furthermore, since it went public in 2013, CT REIT has increased its funds from operations, adjusted funds from operations, and its distribution every single year. In fact, the distribution has been raised 12 times since going public, increasing by a total of 46%.
What’s even more impressive, though, is that as the distribution has increased, the payout ratio has actually come down. For instance, in the first quarter of 2025, the payout ratio was just 72.2%.
Today, CT REIT trades below its 52-week high and offers a dividend yield of 5.9%. Meanwhile, analysts are estimating revenue growth of 4.4% this year and another 5% next year. That may not be massive growth, but it’s steady, reliable, and backed by strong fundamentals.
Therefore, with the stock trading off its high and with its consistent growth expected to continue over the near term, there’s no question that CT REIT is my ultimate pick for monthly income and one of the best Canadian REITs to own for the long haul.
