There are certain things that tell you whether a monthly dividend stock is truly worth holding for the long term. Financial stability and the ability to bring in tenants that stay for years are two of them. And RioCan Real Estate Investment Trust (TSX:REI.UN) has been leaning on both as it continues to refine its focus on necessity-based retail.
The Toronto-based real estate investment trust (REIT) has been clear about its strategy, and its latest results show what that looks like in practice. Its leasing spreads are climbing, occupancy is near the top of the industry, and same property income is rising again. These are encouraging signs if you are someone who counts on a monthly cash flow. Let me explain why RioCan REIT could be a top monthly dividend stock to buy if you want income supported by a resilient retail portfolio.
Source: Getty Images
RioCan: A great monthly dividend stock to buy
Before diving into the numbers, let’s quickly understand why RioCan’s approach fits well with investors focused on monthly dividend income. If you don’t know it already, RioCan owns and operates a large network of retail-focused and mixed-use properties anchored by grocery stores, pharmacies, value retailers, and other necessity-driven tenants. This dependable tenant base gives the REIT a stable stream of rent from businesses people visit every day.
After climbing nearly 10% over the last six months, the trust currently trades at $18.93 per unit, giving it a market cap of $5.5 billion. It pays a monthly distribution that works out to a 6.1% annualized yield at this market price.
Operational strength continues to drive financial momentum
In the quarter ended in September 2025, RioCan reported a 4.6% in its commercial same-property net operating income (SPNOI) with retail occupancy at 98.4%. These figures highlight the strong demand for its well-located necessity retail assets.
Its leasing activity was another bright spot in the latest quarter. The REIT achieved a 20.8% blended leasing spread with the help of a 44.1% jump in its new lease spreads, which shows that it’s capturing higher market rents. High retention, solid renewal rates, and consistent leasing activity all support RioCan’s income that powers its monthly payouts. These operational strengths drove its revenue up by 2.5% YoY (year over year) last quarter to $293.4 million.
Meanwhile, the REIT’s funds from operations (FFO) stayed at $0.46 per unit, backed by stronger same-property income and ongoing unit buybacks.
A clear strategy built around long-term monthly income
RioCan finished the latest quarter with $1.1 billion in liquidity and a stronger mix of unsecured debt. It also brought back more than $476 million through asset sales and residential closings in the first nine months of the year, which it’s recycling into its most productive retail assets.
At its recent Investor Day event held in mid-November, the trust outlined a focused retail-first strategy centred on necessity-driven tenants. With this, RioCan now expects 3.5% commercial SPNOI growth through 2026 to 2028. Similarly, it targets 5% long-term core FFO per unit growth, supported by $1.3 to $1.4 billion in capital recycling.
With high occupancy, strong leasing spreads, and a portfolio centred on stable demand, RioCan is continuing to build a strong financial base that could support its dependable monthly payouts for years to come.
