A 6.54% Dividend Stock Paying Cash Every Single Month

If you’re after consistent income, monthly paycheques from dividend stocks can be incredibly appealing. That’s where a real estate investment trust like RioCan REIT (TSX:REI.UN) comes in. It’s a well-established name in Canadian retail REITs, offering unitholders a monthly distribution and exposure to some of the most valuable real estate in the country. Right now, with a yield around 6.54%, this is one dividend stock that deserves a serious look.

About RioCan

Before diving into the numbers, let’s set the scene. Markets are still jittery about interest rates, and inflation remains sticky. Many investors are shifting away from high-growth names and turning back to real estate and income plays. With monthly payments and long-term tenants in retail and mixed-use urban centres, RioCan offers both stability and cash flow. That’s a winning combination in a market full of uncertainty.

In the first quarter of 2025, RioCan reported revenue of $310.2 million, a slight increase from $309.2 million in the same quarter last year. Net income attributable to unitholders came in at $96.4 million, or $0.31 per unit. More importantly for income investors, RioCan reported funds from operations (FFO) of $134.8 million, or $0.45 per unit. This was steady compared to the prior year. It shows that the core business is delivering consistent cash flow.

Occupancy remains a bright spot. Committed occupancy rose to 98.3%, the highest in RioCan’s history. That kind of consistency helps underpin the monthly payout. It also points to the strength of its tenant base, which includes large retail brands, grocery-anchored plazas, and major urban developments. The REIT continues to focus on major Canadian cities, especially the Greater Toronto Area, where it sees strong demand for retail and mixed-use developments.

Earning income

RioCan’s distribution comes to $1.16 per year. At a recent unit price near $17.85, that gives investors a yield of about 6.54%. That’s well above the TSX average and higher than most Guaranteed Investment Certificates (GICs) or bond funds. For investors who want income they can actually use each month, this is a solid choice. The distribution has been stable for years, and management is focused on maintaining it through smart asset management and steady development.

One concern many investors have with REITs is interest rates. Higher rates can put pressure on real estate values and increase borrowing costs. But RioCan has managed this risk well. In Q1, it reduced its debt by $130 million, lowering its total debt-to-assets ratio to 42.1%. It also extended its weighted average term to maturity to 4.2 years and locked in lower rates for a good portion of its debt. These moves should help it weather rate uncertainty.

Another important angle is growth. While RioCan is already large, it still has a development pipeline, including several mixed-use projects that add residential density above its existing retail assets. These projects are located in areas with strong transit links and high population growth, which should boost long-term income and asset values. At the same time, the company is selling non-core properties and reinvesting in higher-yield opportunities. That’s exactly what you want to see from a REIT focused on sustainability.

Bottom line

So, is RioCan the perfect stock for your entire portfolio? Maybe not. Real estate does come with risks, especially if the economy slows or retail sales weaken. But for a Tax-Free Savings Account (TFSA) investor looking for monthly income, this REIT offers consistency, an attractive yield, and exposure to some of the best real estate in the country. If you want to be paid every month while holding a hard asset that keeps pace with inflation, RioCan is a name worth holding onto. Even a $10,000 investment could bring in around $650 each year, or $54 a month!

With a 6.5% yield, growing urban demand, and a strong operational base, RioCan checks a lot of boxes. It’s not flashy, but sometimes the best investments are the ones quietly sending you cash while others chase the next big thing.