7% Yield! This Dividend Stock Is My Early Retirement Plan

If early retirement is on your mind, you’ve first to figure out how much income you’ll need each month and how to stretch your savings for the long haul. One smart strategy for generating that steady cash flow is investing in dividend-paying stocks, especially those that offer payouts every month.

Among the select few TSX stocks that provide reliable monthly dividends, SmartCentres REIT (TSX:SRU.UN) stands out for its attractive yield and durable payouts. It may not make flashy headlines with its stock price, but its consistent monthly income can support your journey to financial independence.

SmartCentres REIT: A high-yield stock offering steady income

SmartCentres REIT is one of Canada’s most dependable income-generating stocks. With a well-established and diversified portfolio that includes retail shopping centres, mixed-use developments, and valuable land holdings, SmartCentres consistently generates solid net operating income (NOI) and cash flows that support its monthly payouts.

The real estate investment trust (REIT) owns 195 properties, strategically located within 10 kilometres of over 90% of Canada’s population. This unmatched geographic reach gives it strong visibility and consistent foot traffic, especially since many properties sit at prime intersections across the country.

These high-traffic locations witness exceptional occupancy, driven by strong leasing momentum and a high-quality tenant base that includes major national retailers. These tenants enhance foot traffic, drive leasing demand, lead to higher cash collection, and ensure that SmartCentres continues to generate reliable and consistent cash flow.

In the first quarter alone, the REIT leased 178,000 square feet of previously vacant space, reporting overall occupancy at 98.4% at the end of the quarter. Net operating income (NOI) saw healthy growth, up 4.1% across the same-property portfolio. Cash collection continues to exceed 99%, reflecting the credit quality of its tenants and the defensive nature of its property portfolio.

Thanks to its strategic properties, solid tenant base, and high occupancy rate, SmartCentres is well-positioned to consistently pay and maintain its monthly dividend. The REIT pays $0.154 per unit each month, translating into a yield of over 7%.

Earn steady cash month after month

SmartCentres REIT seems well-positioned to continue its steady and dependable growth. The REIT has already renewed nearly 70% of its 5.3 million square feet of leases set to mature in 2025. These renewals haven’t just maintained occupancy, they’ve come with an average rent increase of 8.4% (excluding anchor tenants), which reflects strong demand for its properties.

While SmartCentres is witnessing higher leasing demand and rents, it remains focused on strengthening its core retail portfolio, which will support its future growth. It’s doing that by bringing in higher-quality tenants, curating a better mix of retailers, and opening new stores within its existing properties. This strategy aims to boost cash flows steadily over time, supporting both consistent income generation and long-term value creation.

Beyond its retail backbone, SmartCentres’s mixed-use developments provide recurring income. Moreover, the REIT’s substantial landbank offers future development potential, with more than 75% of its land still unused. That gives the company plenty of runway for growth.

In short, for those thinking about early retirement or looking for a reliable income stream, SmartCentres REIT is designed to be stable, consistent, and rewarding. You won’t see dramatic share price growth, but you will see steady cash in your account month after month.

To put that into perspective, a $25,860 investment today could yield $1,848 per year, or about $154 each month.

Price as of 07/14/2025