When it comes to building reliable passive income, monthly dividend stocks stand out. These offer more frequent payouts, help smooth out cash flow, and provide steady returns, especially in times of uncertainty. SmartCentres REIT (TSX:SRU.UN) is one such dividend stock, offering a yield of about 7.2% and delivering consistent monthly income, even when the economy is shaky. So let’s take a look at this top dividend stock.
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About SmartCentres
SmartCentres owns and operates one of the largest portfolios of retail-focused real estate in Canada. With a market cap around $4.2 billion and consistent yield near 7.2%, it’s a favourite among income investors. What makes it even more attractive is the monthly payment schedule. Many real estate investment trusts (REIT) pay quarterly, but SmartCentres sends money to your account every month, like clockwork.
Now let’s talk numbers. In the first quarter of 2025, SmartCentres reported rental revenue of $229.3 million, up slightly from $217.2.5 million in Q1 2024. Net income came in at $66.4 million, a jump from $59.3 million the year before. The trust reported FFO (funds from operations) of $113.6 million, compared to $112.2 million in Q1 2024. That growth in FFO matters; it’s the key metric REIT investors use to measure performance, since it adjusts for non-cash items like depreciation.
SmartCentres also reported a payout ratio of 84.5% for Q1, slightly below the 85.7% reported in the same quarter last year. That means the REIT continues to cover its generous distributions without overextending. For investors seeking stability, this is crucial. It’s easy to chase a high yield, but if a dividend stock’s paying out too much, that income stream can dry up fast. SmartCentres looks disciplined.
More to come
A big part of SmartCentres’ strength is its tenant base. The REIT is anchored by Walmart, which occupies more than 25% of its leasable space. That kind of anchor tenant helps ensure rental income stays steady, even if smaller retailers struggle. As of Q1 2025, the portfolio has maintained a strong occupancy rate of 98%. In this environment, that’s impressive.
There’s also growth potential here. While SmartCentres is known for retail properties, it has been diversifying into mixed-use and residential development through its SmartLiving platform. These new initiatives aim to unlock value from underused land. The dividend stock is developing rental apartments, retirement residences, and condos on land it already owns. That means it doesn’t have to acquire expensive new sites to grow. It’s using what it already has, which is smart and efficient.
Of course, nothing is risk-free. The retail space isn’t what it used to be, and e-commerce continues to reshape how Canadians shop. But SmartCentres has leaned into this shift. Many of its properties are in high-traffic suburban areas and include essential service providers, places people still visit in person. The REIT is not stuck in the past. It’s adapting.
Bottom line
If you’re thinking about how to deploy your TFSA or boost monthly income, SmartCentres is worth serious consideration. At a yield of 7.2%, an investment of $10,000 could bring in roughly $800,714 per year, or around $60 each month. That may not sound like much, but for retirees or those looking to offset rising costs, it adds up!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $25.88 | 386 | $1.85 | $714.10 | Monthly | $9,990.08 |
Canadians are clearly feeling squeezed. With so many people struggling to separate wants from needs, passive income can be a lifeline. It turns investing into something automatic and comforting. And that’s exactly what SmartCentres delivers. So if you’re looking for a dividend stock that pays monthly, rewards patience, and holds up even through recessions, this REIT might be one of the best cash flow machines on the TSX today.
