It’s not easy to predict where the Canadian stock market is heading these days. One moment, there’s optimism about rate cuts. The next moment, fears of an economic slowdown or trade troubles creep back in. That’s why smart investors are turning to high-yielding dividend stocks that offer stable income, regardless of the market noise. And when that income comes monthly, it feels even more reassuring.
A 6.5% annual yield from a stock that pays every month could act as a cushion in uncertain times and allow you to reinvest or cover regular expenses. And if that income is supported by solid properties and necessity-based tenants, it becomes all the more attractive. In this article, I’ll talk about one such perfect stock that is built for long-term income seekers.
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A perfect monthly dividend stock to hold for the long term
A top monthly dividend stock that looks really attractive to buy now is RioCan Real Estate Investment Trust (TSX:REI.UN). As one of Canada’s largest real estate investment trusts (REITs), it owns and manages retail-focused and mixed-use properties in top Canadian cities.
After climbing by nearly 5% over the last two months, its stock currently trades at $17.93 per share with a market cap of $5.3 billion. At this market price, it offers a 6.5% annualized dividend yield, paid monthly.
What’s driving recent optimism
The recent bounce in RioCan stock could mainly be attributed to its strong leasing demand and improving property performance. In the first quarter of 2025, the Toronto-headquartered REIT achieved a 17.5% blended leasing spread, with new leases signed at 18.3% higher rents. This strong demand pushed its committed occupancy to 98%, reinforcing confidence in its retail strategy.
Meanwhile, RioCan’s same property net operating income for commercial properties also climbed 3.6% YoY (year-over-year) last quarter with the help of backfilling spaces with higher rents and more resilient tenants like grocery stores and pharmacies. Even with headwinds from the Hudson’s Bay Company joint venture, RioCan still managed to grow its quarterly funds from operations (FFO) per unit by 8.9% YoY, regaining investors’ confidence.
Financial discipline supports consistent returns
What makes RioCan even more attractive is its disciplined approach to capital. During the quarter, it bought back 3.2 million units under its share buyback program by using proceeds from asset sales to fund the purchases. The REIT also maintained a solid FFO payout ratio of 61.2%, which is well within its target range.
At the same time, the company continues to reduce debt smartly and holds $1.4 billion in liquidity, with $8.5 billion in unencumbered assets.
Focus on long-term value creation
To focus more on its core strategy, RioCan is actively selling off its residential portfolio under the RioCan Living brand.
It has already entered firm deals to sell four residential properties worth $197.3 million, with proceeds going toward debt reduction and supporting share buybacks. These transactions not only simplify its business model but also confirm the value of its assets.
All of this puts RioCan in a stronger position to continue rewarding investors with attractive dividends for years to come. With consistent monthly income, a sharpened focus on retail, and strategic asset recycling, this REIT currently offers the real stability that many portfolios need today.
