One of the biggest benefits of dividend investing is the stable stream of income it provides — especially when that income is paid monthly. For Canadian investors building a retirement plan or simply looking to supplement their cash flow, monthly dividend stocks offer predictability that quarterly payers might not match.
And when such fundamentally strong stocks go temporarily out of favour, they could present compelling entry points for long-term investors. Right now, one such rock-solid monthly dividend stock is down nearly 28% from its 52-week high despite maintaining strong fundamentals and consistent payouts. That combination of discounted price and income reliability makes it a stock worth considering.
In this article, I’ll dive into why this monthly dividend stock looks especially attractive at today’s levels and how it could strengthen your income portfolio.
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A top monthly dividend stock to buy
Dream Industrial REIT (TSX:DIR.UN) checks all the boxes for a top monthly dividend stock to buy in 2025. This real estate investment trust (REIT) currently owns and manages a diversified portfolio of 336 industrial properties across Canada, Europe, and the United States.
As of now, the stock is trading at $10.60 per share, giving the trust a market cap of $3 billion. It pays a monthly dividend with an impressive annualized yield of 6.6%. But what makes it really compelling is that it’s still down nearly 28% from its 52-week high, making it look undervalued for the quality of income it provides.
Signs of a potential rebound
Over the past eight months, Dream Industrial’s stock has dropped by more than 26%, with much of the pullback tied to the sector-wide volatility, interest rate concerns, and some softness in its profitability. That said, the company hasn’t lost its footing operationally. It continues to maintain strong occupancy across its portfolio, with 95.4% in-place and committed occupancy levels.
Despite the recent dip in stock price, the trust reported solid leasing momentum in the first quarter of 2025 and completed over $460 million in acquisitions this year. These new assets are expected to generate reliable income and support long-term rental growth.
Solid numbers backing a steady payout
Now that we’ve seen what’s been weighing on the stock, let’s talk about what’s keeping the income flowing. In the first quarter, Dream Industrial’s net rental income grew by 6.8% YoY (year over year), while funds from operations (FFO) climbed by 5.8% from a year ago to $0.26 per unit.
Even as its net profit dipped due to valuation adjustments, the actual cash-generating performance stayed on track. The trust also managed to reduce its FFO payout ratio to 69%, down from 73.2% last year, which adds to the dividend’s reliability.
Long-term moves that could pay off
Despite recent challenges, Dream Industrial continues to invest in high-yield projects, including solar installations and industrial space upgrades, while expanding its footprint in both Canada and Europe.
Its continued focus on strategic acquisitions and growing rent spreads, especially in Ontario and Québec, could help lift its earnings even further. In short, it’s a rare mix of reliable monthly income and real growth potential at a discounted price. That’s what makes it one of the most compelling monthly dividend stocks on the TSX today.
