When you think of income-producing real estate, the dream is usually simple: steady cash flow, some long-term growth, and as few surprises as possible. Right now, three of the most dependable dividend stocks on the TSX are delivering just that. Those are SmartCentres REIT (TSX:SRU.UN), Dream Industrial REIT (TSX:DIR.UN), and Choice Properties REIT (TSX:CHP.UN). While each one operates in a different corner of the market, all three dividend stocks offer strong yields and improving fundamentals that make them standouts among Canadian real estate investment trusts (REIT).
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SRU
SmartCentres has quietly put together a strong 2025 so far. The dividend stock climbed nearly 9% over the last year, and it’s not just because investors are chasing yield. Occupancy hit 98.6% this past quarter, with over 147,000 square feet leased and impressive rent growth of 8.5%, excluding anchor tenants. Same-property net operating income (NOI) also climbed 4.8% year over year.
On the development side, SmartCentres is also pushing ahead with its strategy. Several self-storage projects were completed and opened during the quarter, and the dividend stock has over 58 million square feet in zoned development rights to work with. The pipeline includes mixed-use and residential projects, like the 98 townhomes already closed in Vaughan.
Despite the rising cost of capital, SmartCentres continues to generate strong net rental income. The risks? A high payout ratio and slower-than-expected lease-up in some projects, but the underlying business remains resilient.
DIR
Dream Industrial offers a different story focused on logistics and warehousing, with a footprint that stretches across Canada and Europe. The dividend stock is still down about 9% over the past year, but that’s starting to look like a buying opportunity. Funds from operations (FFO) per unit climbed 5.8% to $0.26 in Q1 2025, and net rental income rose nearly 7%. Leasing activity was especially strong, with over 1.5 million square feet signed so far this year at an average rental spread of 23%.
Dream has also been busy acquiring assets, with over $460 million in deals closed since January. These include properties in Oakville with long-term redevelopment potential, which should help drive NOI growth in the years ahead. The REIT’s occupancy remains high at 95.4%, and its European assets offer rent escalations that provide natural inflation protection.
While net income declined on paper due to fair value adjustments, the operating trends are solid. Dream also bought back nearly two million units, which is a confident signal from management. The dividend stock trades at just 0.74 times book value, offering compelling value in a sector where quality matters.
CHP
Choice Properties rounds out the trio with its focus on grocery-anchored retail and industrial real estate. It hasn’t had the best year from a net income perspective, posting a $154 million quarterly loss, but that’s mostly due to non-cash adjustments related to its exchangeable units. Strip that out, and the fundamentals are stable. FFO per unit grew nearly four percent to $0.265, and same-asset NOI rose 1.4%, led by 1.7% growth in retail and 4.2% growth in industrial when adjusted for one-time items.
The REIT also completed over $427 million in transactions last quarter. It exited lower-growth Calgary assets and continues to focus on development, with nearly $35 million invested in commercial builds this quarter. Occupancy across the portfolio remains a robust 97.8%.
The forward yield sits above 5%, and the trust reaffirmed guidance for 2% to 3% FFO growth this year. The biggest risk here is the high debt load, but liquidity is strong, and the trust has access to over $1.3 billion in credit.
Bottom line
Each of these REITs offers something different, but all share a key feature: dependable income paired with a credible plan for growth. And right now, investing $7,000 in each could bring in $1,244 annually!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $26.94 | 259 | $1.85 | $478.15 | Monthly | $6,976.46 |
| DIR.UN | $12.28 | 570 | $0.70 | $399.00 | Monthly | $6,999.60 |
| CHP.UN | $14.68 | 477 | $0.77 | $367.29 | Monthly | $7,002.36 |
Whether you’re after retail, industrial, or a mix of both, SmartCentres, Dream Industrial, and Choice Properties are three of the best dividend stocks to consider right now.
