Earning a monthly dividend gives you a bit of financial breathing room, month after month, especially when the market is volatile. And when that income comes from a real estate investment trust (REIT) that’s actively repositioning its portfolio for higher quality and stronger returns, it gets even better.

There’s one such TSX-listed stock, Canadian Apartment Properties REIT (TSX: CAR.UN), that has slipped almost 20% over the past year, despite its consistent focus on acquiring premium locations, shedding lower-yield assets, and repurchasing its own shares to unlock more value for investors.

In this article, I’ll talk about why it could be one of the most attractive monthly dividend stocks to consider buying now and holding forever.

Why this 20% drop could be a blessing in disguise

If you don’t know it already, Canadian Apartment Properties REIT, or CAPREIT, is one of Canada’s largest residential landlords. It owns over 45,000 apartment suites, townhomes, and manufactured housing sites across major urban centres in Canada and parts of Europe.

After losing nearly 20% of value over the last year, the stock currently trades at $39.53 per share with a market cap of $6.2 billion. Even after its recent dip, the REIT continues to pay a reliable monthly dividend with a current annualized yield of around 3.9%. That combination of a stable monthly income stream and a discounted share price makes CAPREIT stock interesting right now.

Despite a sharp decline in its share price of late, the company has been busy realigning its portfolio and improving its operations. In the second quarter of 2025, CAPREIT sold off $274 million worth of underperforming Canadian assets and closed or committed to another $743 million in European property sales. Mostly, these were lower-yield, non-core assets.

Meanwhile, the REIT reinvested $165 million into higher-quality properties across Canada and spent $187 million buying back its own shares at a discount to boost value for long-term investors.

Strength in financials

In the quarter ended in June, CAPREIT’s same-property net operating income (NOI) rose 4.9% YoY (year over year), and its NOI margin improved by 14 basis points to 66.3%. Its Canadian occupancy rate also moved up to 98.3%, helped by its sharper rent strategies and fewer vacancies. During the quarter, its rents also rose 5.2% YoY, while operating expenses were well-managed, even with some inflation-related pressure in areas like credit losses and advertising.

On the brighter side, the REIT’s funds from operations (one of the most important REIT metrics) climbed by 2.6% YoY in the second quarter to $0.661 per unit, reflecting the benefits of operational improvements and those buybacks.

Why this monthly dividend stock could reward patient investors

The most important positive factor here is CAPREIT’s shift back to being a Canada-focused REIT as it’s continuing to make clear moves to exit European markets and double down on stable, high-demand regions across Canada. At the same time, the REIT is also strengthening its balance sheet by further paying down debt, which will allow it to comfortably fund new acquisitions.

Overall, CAPREIT isn’t chasing risky growth but trimming the excess, raising cash flow quality, and improving long-term earnings potential. That’s why, for investors looking to lock in its reliable monthly income, this 20% dip might just be the opportunity worth grabbing.