If you’re looking to start or boost your passive income stream, high-yield monthly dividend stocks can be a compelling choice. Unlike stocks with quarterly dividends, monthly payouts provide a more frequent income, making them ideal for reinvesting and covering short-term financial goals.
However, it’s crucial not to chase only high yields. Evaluating a company’s fundamentals, dividend payment history, and its ability to sustain those payouts is essential.
Keeping these factors in mind, here is a top Canadian stock that pays a monthly dividend with an attractive 6% yield, making it an ultimate passive income play.
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The 6% monthly dividend stock
Investors seeking a steady passive income stream could consider CT REIT (TSX: CRT.UN). As of March 31, 2025, the REIT owned a diverse mix of 377 properties, including 369 retail sites, 5 industrial properties, a mixed-use commercial property, and 2 development assets. Altogether, these represent an impressive 31 million square feet of gross leasable area (GLA).
A key anchor for CT REIT is its relationship with Canadian Tire Corporation (CTC), its primary tenant. CTC leases about 28.8 million square feet, making up nearly 92.8% of the total GLA and over 91.8% of CT REIT’s annual base rent. The majority of this leased space, approximately 84.9% comes from retail and mixed-use properties, while the remainder is tied to industrial assets. This strategic alignment with a strong national brand lends the REIT a notable degree of income stability.
CT REIT benefits from a high occupancy rate and long lease terms, which add stability and visibility to future earnings and payouts. In the first quarter of 2025, CT REIT reported an exceptionally high occupancy rate of 99.4%. The weighted average lease term stood at 7.5 years.
Recent performance also signals strength. The REIT reported a 4.6% year-over-year increase in net operating income (NOI) in Q1 2025. This was driven by high occupancy and recent acquisitions and developments. This income growth resulted in a 3.9% increase in adjusted funds from operations (AFFO), allowing management to raise monthly distributions by 2.5%.
Further, since its IPO in 2013, the REIT has increased its distribution by about 3.3% annually. CT REIT pays a monthly dividend of $0.079 per unit, which translates to a 6% annual yield.
Earn passive income month after month
CT REIT has a strong track record of delivering solid earnings growth while steadily increasing its monthly distributions. Moreover, it has maintained a healthy balance sheet, enabling it to capitalize on growth opportunities.
Looking ahead, CT REIT’s high occupancy rate and long-term lease agreements position it well to generate consistent NOI and AFFO, supporting its payouts. Further, most of the REIT’s leases with Canadian Tire feature built-in annual rent increases averaging about 1.5%. These predictable rent escalations provide a reliable source of organic growth, further strengthening CT REIT’s earnings.
The REIT’s development pipeline remains strong. It has 20 development projects underway, with around half expected to be completed this year, and the rest scheduled to roll out in 2026 and beyond. These projects will enhance the REIT’s earnings base over time, providing more room for distribution growth.
CT REIT’s AFFO continues to grow at a faster pace than its distributions. As a result, the AFFO payout ratio fell to 72.2% in Q1. This means that its current monthly payouts are well covered by earnings, a reassuring sign for passive income investors.
The table below shows that owning 1,000 shares of CT REIT would generate $79 in monthly income.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| CT REIT | $15.73 | 1,000 | $0.079 | 79 | Monthly |
