Earning a consistent monthly income from your investments can help smooth out the ups and downs of daily life. Whether you’re looking to cover a bill, pay down a loan, or simply enjoy a little more freedom, monthly dividends are an appealing option. And one stock on the TSX that delivers monthly cash is CT Real Estate Investment Trust (TSX: CRT.UN).
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Why it works
If your goal is to generate $200 in monthly income, you might be wondering how far a $7,000 investment will take you. The short answer is: not all the way just yet. But that doesn’t mean CRT.UN isn’t a smart place to start. With a yield of about 5.8% and a long track record of stable payments, this REIT is built for consistency. Plus, it offers the kind of dividend reliability that makes it easier to plan your finances month-to-month. Add in share growth, and you could easily make that monthly cash.
Let’s break down the math. At a 5.8% yield, $7,000 invested in CRT.UN would generate about $406 per year. That works out to around $34 per month. While that’s still far from $200, it’s a steady stream of income from a single stock. To get to $200 a month, you’d need to invest roughly $41,379, assuming the yield stays the same. However, if shares were to grow by 28.4%, investors could create that $200 per month!
| COMPANY | PRICE | UNITS | DIVIDEND | TOTAL PAYOUT | MONTHLY DIV | REQUIRED PRICE GAIN | TARGET PRICE | CAPITAL GAIN | TOTAL INCOME |
|---|---|---|---|---|---|---|---|---|---|
| CRT.UN | $16.15 | 433 | $0.95 | $411.35 | $34.28 | 28.4% | $20.74 | $1,988.65 | $2,400 |
So, why CRT.UN?
Now let’s take a closer look at what you’re investing in. CRT.UN owns a portfolio of more than 375 properties across Canada. Most of these properties are net-lease retail spaces, and a large portion are leased to Canadian Tire. This creates a level of stability you don’t always find in retail real estate. The leases tend to be long-term, with rent escalators built in. That helps protect income even during economic slowdowns.
According to its most recent earnings report, CT REIT brought in $584.9 million in revenue over the past year. Net income came in at $201.7 million, and diluted earnings per share (EPS) reached $1.51. In the first quarter of 2025 alone, the trust posted $79 million in net income, up from $72 million a year earlier. That kind of growth isn’t flashy, but it’s steady, and that’s exactly what you want from an income-generating investment.
Staying stable
The trust also benefits from its connection to Canadian Tire. With so many of its tenants being part of one of Canada’s most recognized retailers, CRT.UN doesn’t face the same vacancy risk as more diversified commercial REITs. That said, it still has exposure to interest rate movements. Higher rates can lead to higher borrowing costs and lower property values, which are worth watching.
Still, the REIT maintains a conservative payout ratio and carries relatively low debt. That gives it room to weather rate hikes and continue delivering returns. For cautious investors, the combination of dependable tenants, monthly income, and geographic diversification makes it appealing.
Bottom line
So, can $7,000 generate $200 a month in income today? Not quite. But $7,000 invested in CRT.UN does get you a meaningful step closer. At about $34 a month, it provides passive income you can build on. Over time, with reinvestment or by adding more capital, you could hit your $200 goal, without having to stretch for riskier options. Furthermore, should shares climb 28% this year, investors could hit that $200 mark sooner as opposed to later.
For Canadians looking to create a steady monthly income from a relatively safe, dividend-paying stock, CRT.UN is worth a look. It won’t double your money overnight, but it will keep paying you, month after month, as you work your way toward greater financial freedom.
