This 5.6% Dividend Stock Pays Me Every Month Like Clockwork

This 5.6% dividend stock has the ability to sustain it payouts and can help you generate a monthly income of $100.

Sneha Nahata

Sneha is a M.Sc. in finance and has been a Motley Fool contributor since mid-2020. Sneha specializes in writing about bank, energy, consumer and TMT (technology, media, and telecom) stocks. She focuses on identifying winning long-term stock picks.

Published November 6, 2025 4:10 pm EST

| More on: DIR.UN

Canadians seeking to build a steady stream of passive income may find high-yield dividend stocks that pay monthly to be an appealing option. These investments provide regular cash flow and can add stability to an income-focused portfolio. However, it’s important to remember that dividends are never entirely guaranteed. Changes in business performance, declining cash flows, or broader economic downturns can force companies to trim or suspend their payouts.

Investors should also be cautious about chasing high yield. A high-yield dividend can look attractive on paper, but if the underlying company is struggling to sustain its payments, today’s generous yield might become tomorrow’s disappointment. That’s why taking a close look at a company’s fundamentals, earnings stability, and long-term payout capacity is essential before investing.

With that perspective in mind, here is a top Canadian stock currently offering an attractive 5.6% dividend yield. Moreover, it pays a monthly dividend and has a sustainable payout ratio.

A 5.6% dividend stock paying every month

For Canadians looking for a monthly income, Dream Industrial REIT (TSX: DIR.UN) is a compelling option. The REIT owns, manages, and operates a diversified portfolio of industrial properties, including distribution and warehousing spaces across the world that serve a wide range of industries. This diversity reduces risk, with no single sector contributing more than 18% of its annualized gross rent.

As of September 30, 2025, Dream Industrial REIT’s portfolio included interests in 340 assets comprising 552 buildings, covering approximately 73.2 million square feet of gross leasable area (GLA) across Canada, Europe, and the U.S. The REIT’s tenant base is equally broad, with 1,465 tenants spread across its portfolio, ensuring steady rental income and minimizing exposure to individual tenant risk.

Supporting its monthly payouts is the company’s solid operational performance. The REIT consistently maintains high occupancy levels, supported by solid leasing demand in its key markets. Thanks to the higher occupancy rate, the firm generates strong comparative properties net operating income (CP NOI) and funds from operations (FFO), which allows it to sustain its distributions over time.

At present, Dream Industrial REIT offers investors a monthly dividend of $0.058 per share, representing an attractive annual yield of around 5.6%.

Earn a passive income of $100 per month

Dream Industrial REIT continues to show resilience and steady growth, strengthening its ability to sustain its monthly distributions. The company’s recently reported third-quarter results were solid, reflecting the strength of its diversified industrial portfolio.

Funds from operations (FFO) per unit grew 4.3% year-over-year, supported by a 6.4% increase in CP NOI. Net rental income rose by an impressive 8.8%, highlighting the REIT’s ability to capture higher rents and maintain strong tenant demand. Leasing activity remained robust across both its wholly owned and managed properties, including newly completed developments. Since the start of the quarter through October 31, 2025, Dream Industrial transacted approximately 2.7 million square feet of leases, achieving rental rate spreads above the levels recorded in the first half of the year.

Portfolio fundamentals remain solid, with occupancy holding at a healthy 95.4% across the portfolio. The REIT continues to manage its capital base through a balanced strategy of acquisitions and selective asset sales under its capital recycling program. This disciplined approach allows Dream Industrial to enhance portfolio quality while maintaining financial flexibility.

Looking ahead, the company’s development and leasing pipeline remains encouraging, signalling continued tenant demand for modern logistics and industrial space. Beyond real estate, Dream Industrial is expanding its solar energy program. Construction has begun on five new solar projects. As electrification trends accelerate, these renewable energy investments across Canada and Europe are expected to generate attractive long-term returns, complementing the REIT’s core property income and supporting its distributions.

The table indicates that owning 1,725 shares of Dream Industrial REIT would generate a monthly income of over $100.