How Many SmartCentres Shares You Need for $1,848 in Dividends

When building a long-term portfolio, it’s essential to include a few high-quality dividend stocks that can deliver consistent income regardless of market fluctuations. These stocks not only provide steady cash flow but also add stability and diversification, helping to smooth out volatility over time.

While many TSX stocks pay dividends, only a few are reliable investment options. Among the dependable income stocks, I’ll focus on the ones with monthly payouts. Notably, monthly payouts provide a more frequent stream of income for reinvestment and meeting short-term financial needs.

Among the few TSX stocks that provide reliable monthly dividends, SmartCentres REIT (TSX: SRU.UN) stands out for its attractive yield and durable payouts.

SmartCentres offers high and reliable yield

SmartCentres is a top dividend stock that pays cash every single month and has a durable payout history. The payouts of this Canadian real estate investment trust (REIT) are supported by its diversified portfolio of resilient real estate properties, which generates steady same-property net operating income (NOI). This implies that SmartCentres could maintain and grow its dividend in the coming years.

The REIT owns 195 properties strategically located at prime intersections, drawing strong foot traffic. This ensures a consistently high occupancy rate for the REIT and boosts leasing demand. The bulk of SmartCentres’s portfolio is made up of core retail properties, providing a stable foundation. Moreover, SmartCentres has also expanded into mixed-use developments, a move that diversifies its portfolio and enhances the durability of its revenue stream.

A key strength is the REIT’s tenant mix, which includes many of the largest national retailers. These anchors attract traffic and support a higher leasing demand and cash collection rate. The result is a reliable stream of rental income that supports its distributions.

The REIT currently pays a dividend of $0.154 per share each month, translating into a yield of about 7%.

Earn $1,848 per year from SmartCentres stock

SmartCentres REIT is a resilient income play, delivering reliable monthly payouts despite market headwinds. With its solid tenant mix, strong leasing demand, rising rental rates, and near-full occupancy, the trust is well-positioned to sustain and grow its distributions in the years ahead.

In the latest quarter, SmartCentres leased 178,000 square feet of space, driving occupancy to 98.4%. Same-property net operating income (NOI) rose 4.1% overall, and 6.7% excluding anchor tenants. Looking ahead, nearly 70% of the 5.3 million square feet of leases maturing in 2025 have already been renewed at higher rents. Cash collection continues to remain very high, reflecting the quality of its tenants.

The REIT is also enhancing its resilience by diversifying its properties and adding services such as medical, fitness, and daycare facilities. Meanwhile, its premium outlets continue to post strong growth. With a large landbank and robust development pipeline, SmartCentres is poised to grow NOI and funds from operations at a steady pace, which will support future distribution.

The table below shows that with an investment of about $26,670, you could own 1,000 shares of SmartCentres REIT. These shares would generate approximately $154 in monthly income, or around $1,848 per year.