Investing in monthly dividend stocks enables you to establish a low-cost, passive income stream. However, the best dividend stocks are companies that are positioned to grow and maintain these payouts across business cycles.
In this article, I have identified two TSX stocks that will provide you with monthly income in 2025 and beyond.
Is this TSX dividend stock a good buy?
In Q2 2025, SmartCentres REIT (TSX:SRU.UN) posted same-property net operating income growth of 4.8%, while maintaining an occupancy rate of 98.6%.
The REIT’s focus on essential retail categories continues to pay dividends. Major tenants like Costco and Walmart are expanding their footprints, which indicates the strength of SmartCentres’ tenant relationships and strategic positioning in necessity-based retail.
Financial metrics reflect improving fundamentals. The real estate investment trust is expected to pay shareholders an annual dividend of $1.85 per share in 2025, representing a forward yield of nearly 7%.
A strong Q2 performance allowed SmartCenters to decrease the dividend payout ratio to 89.4%, while funds from operations per unit increased to $0.58 from $0.50 year-over-year. Its cash collections remained strong above 99%, and 82% of 2025 lease maturities have already been renewed with positive spreads of 6.1%.
Ongoing development activity
Development activities show measured progress. The 458-unit Millway apartment project achieved a 97.8% occupancy rate, performing ahead of budget, while the ArtWalk condo project remains 93% presold. Three SmartStop self-storage facilities opened during the quarter, bringing the total to 14 operational units.
Management’s conservative approach to capital allocation remains evident, with plans to use disposition proceeds primarily for debt reduction.
While asset sales face mixed prospects in the near term, improving market conditions suggest better capital recycling opportunities ahead. The company’s focus on value and convenience retail positions it well for continued stability, even as broader economic headwinds persist across Canada.
Is this mid-cap stock still undervalued?
Another monthly dividend stock is Exchange Income (TSX:EIF), which offers you a yield of 4%. Exchange Income operates in the aerospace and aviation segment. It offers fixed-wing and rotary-wing, medevac, passenger, charter, freight, and auxiliary services. It is also engaged in the design, manufacture, and installation of exteriors for residential, retail, and office spaces; and provides window wall systems, curtain walls, and railing solutions.
In Q2, Exchange Income Corporation delivered another exceptional quarter, setting records across key metrics, with revenue reaching $720 million, the highest in the company’s history. The diversified aerospace and manufacturing company’s performance demonstrates resilience in the face of economic uncertainty and geopolitical headwinds.
An Arctic strategy
The standout achievement was completing the Canadian North acquisition on July 1, adding critical Arctic aviation infrastructure to EIC’s portfolio. Management secured a long-term service agreement with Nunavut’s government, making Canadian North and Calm Air the sole aviation providers across all three regions.
This strategic move positions EIC to capitalize on Canada’s renewed focus on Arctic development and sovereignty, with potential defence contracts and critical mineral extraction projects creating substantial growth opportunities.
Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) jumped to $177 million, while free cash flow reached $123 million in Q2. The aerospace and aviation segment grew revenue by 7% to $455 million, driven by historic investments in medevac operations and strong firefighting activities.
Manufacturing delivered solid performance with revenue increasing 13% to $265 million. Plans for a second Southeast U.S. plant reflect strong long-term demand. The multistory window solutions business faced aluminum tariff headwinds but secured $100 million in new bookings post-quarter, suggesting improving sentiment as trade uncertainties normalize.
Looking forward
Management has raised 2025 EBITDA guidance to $725 million to $765 million, incorporating the contributions from Canadian North. With leverage ratios at historical lows and over $1 billion in liquidity, EIC maintains financial flexibility for organic growth and strategic acquisitions while targeting its established 15% return thresholds.
Analysts forecast earnings to expand from $2.99 per share in 2024 to $5.57 per share in 2029. If the TSX stock is priced at 20 times forward earnings, which is a reasonable valuation, it should trade near $112 in early 2029, indicating an upside potential of over 60% from current levels. If we adjust for dividend reinvestments, cumulative returns could be closer to 80%.
