Finding consistency in the stock market isn’t easy, especially when it comes to monthly dividend stocks. Most businesses, even the good ones, go through ups and downs. And while share price volatility is expected, it’s operational consistency that truly sets the best stocks apart.
That’s why it’s so rare to find a stock that not only delivers dependable performance year after year, but also pays a reliable monthly dividend.
Monthly dividend stocks are already in a league of their own, but when one can also grow steadily and reward shareholders without interruption, it quickly becomes a top-tier long-term investment.
These kinds of stocks are hard to find, but one name that continues to fly under the radar, despite delivering exactly that, is CT REIT (TSX:CRT.UN).
CT REIT is a real estate stock that is backed by Canadian Tire (TSX:CTC.A), which owns the majority of its shares and accounts for nearly all of the revenue the REIT generates. That kind of anchor tenant stability is nearly unmatched in the real estate investment trust (REIT) space.
So, if you’re looking to boost your passive income with a reliable monthly dividend stock that can continue to grow over the long haul, here’s why CT REIT is one of the best on the TSX.
Why is CT REIT such a reliable monthly dividend stock?
As mentioned above, one of the biggest reasons CT REIT is so reliable comes down to its unique relationship with Canadian Tire. Not only is Canadian Tire one of the strongest and most recognized brands in the country, but it also continues to grow both in terms of store footprint and in relevance to Canadian consumers.
CT REIT earns over 90% of its revenue from Canadian Tire, which acts as both its largest tenant and majority shareholder. That relationship gives CT REIT unmatched tenant stability, long-term visibility into its future cash flows, and a level of reliability few other REITs can offer.
The REIT also benefits from long-term lease structures, most of which include built-in rent escalations. These rent increases provide steady and predictable growth in rental income, which in turn supports the monthly dividend stocks’ annual increases to the distribution. Furthermore, as Canadian Tire continues to expand, renovate, and optimize its store network, CT REIT also benefits directly.
So, not only does it earn reliable income, but CT REIT also has a ton of potential to continue growing consistently over the long haul, which is why it’s a stock that never disappoints shareholders.
The financial consistency is hard to ignore
When you dig into CT REIT’s financials, the reliability becomes even more obvious. There are a ton of positive takeaways, but a few key highlights stand out.
For starters, its revenue has increased every single year since the REIT went public just over a decade ago. Furthermore, the revenue has grown at a compound annual growth rate (CAGR) of 5.3%, which may not be explosive growth, but it’s steady and reliable, which is exactly what you want from a long-term dividend stock.
What’s even more impressive than its consistent revenue growth, though, is that its adjusted funds from operations (AFFO) per share has also grown at a CAGR of 5.3% since the REIT went public.
So, it’s clear that the monthly dividend stock is scaling efficiently and keeping costs under control as it expands. And because of the consistent growth in revenue and AFFO, the dividend has also been increased every year since inception.
That means that even through the various economic environments of the last decade, from the pandemic and lockdowns to surging inflation and rising interest rates, CT REIT has never disappointed its shareholders. In fact, it keeps rewarding them.
So, if you’re looking for a high-quality stock to buy now and hold for years, not only does CT REIT pay a reliable 6% yield and offer monthly income, but it’s also constantly expanding operations and increasing that dividend every single year.
