Dividend stocks reward shareholders with regular cash payments, making them a compelling investment option for generating passive income. However, when selecting the right dividend stock, examine the company’s fundamentals and focus on Canadian companies with strong financials, a proven history of dividend payments, a sustainable payout ratio, and steady earnings growth.
Moreover, among the top dividend-paying stocks, those that offer monthly distributions are particularly attractive for anyone seeking a consistent income stream, as they function almost like a regular paycheque, helping investors more smoothly manage cash flow.
With these factors in mind, here is a reliable dividend stock that is my top pick for passive income. Moreover, this Canadian stock offers a high yield of 7%, making it an attractive option for investors seeking a steady income.
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A top TSX dividend stock offering a 7% yield
Among the limited number of TSX-listed stocks that reward investors with monthly dividends, SmartCentres REIT (TSX: SRU.UN) is a top investment for passive income. Its long history of steady payouts, high yield, and focus on rewarding shareholders with monthly distributions make it a compelling choice for passive income.
The real estate investment trust (REIT) operates a solid portfolio of high-quality real estate assets that consistently generate strong same-property net operating income (NOI), supporting its dividend payouts.
Notably, SmartCentres owns 197 mixed-use properties, strategically located across Canada. Many of these sites are positioned at key intersections near densely populated areas, giving the trust a significant advantage in attracting consistent foot traffic. This geographic strength supports high occupancy rates and ongoing demand for its properties, ensuring dependable rental income year after year.
The REIT’s core retail real estate portfolio adds stability to its operations and supports steady payouts. Its tenants include major national retailers with a defensive business model. These well-established brands help sustain consumer activity, which in turn keeps occupancy levels strong and rental payments steady.
Currently, investors can earn $0.154 per unit every 30 days by investing in this REIT. Based on its closing price of $26.60 on November 3, its current dividend translates into a high yield of about 7%.
SmartCentres to sustain its payout
The strong performance of its core retail portfolio and mixed-use development position it well to sustain its payouts well into the future. The REIT is strengthening its retail portfolio by attracting high-quality tenants and improving its tenant mix. Moreover, it is opening new stores within existing properties. These initiatives will drive stable and growing cash flows, ensuring consistent income and dividend payouts.
The REIT’s operating performance metrics remain solid. In the second quarter of 2025, SmartCentres reported a high occupancy rate of 98.6%, while rent collections exceeded 99%. It has also been successful in renewing leases at higher rental rates, a sign of strong demand for its retail spaces. This trend highlights the resilience of its portfolio and ability to generate steady income.
Beyond retail, SmartCentres is ramping up its mixed-use development projects. This strategic diversification enhances its long-term earnings outlook and enables it to capitalize on shifting consumer habits and urbanization trends. Combined with a solid balance sheet and an extensive land bank, SmartCentres is well-positioned for steady growth, which will support its long-term payouts.
If you buy 1,000 shares of SmartCentres REIT, you will start earning a passive income of $154 every month.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Smartcentres REIT | $26.60 | 1,000 | $0.154 | $154 | Monthly |
