For investors who value reliable passive income, dividend-paying stocks are a compelling investment option. These income-generating equities pay regular cash, allowing investors to earn while they hold the stock.
Among the top dividend payers, monthly dividend-paying Canadian companies are an attractive option for income-focused investors. They function like a steady paycheque, offering predictable cash flow for those who rely on dividend income for everyday expenses or who want to reinvest their earnings more frequently. For long-term investors, more frequent reinvestments may also enhance compounding, supporting stronger returns over time.
But when choosing monthly dividend stocks, consider companies with solid fundamentals. Companies with a strong balance sheet, a long-standing track record of dividend payments, sustainable payout ratios, and consistent earnings growth are reliable sources of steady income.
Against this background, here is a Canadian dividend stock that pays cash every single month. Moreover, this dividend payer offers a high yield of 7%, making it an attractive income stock.
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SmartCentres REIT offers 7% yield
Among the top monthly dividend stocks, SmartCentres REIT (TSX: SRU.UN) is a top option for steady income. Its strong dividend payment history and high yield make the real estate investment trust (REIT) a compelling choice for passive income.
What supports this REIT’s payouts is the resilience of its underlying real estate. SmartCentres owns 197 mixed-use properties, positioned in high-traffic, densely populated markets. These are the kinds of locations where tenant demand remains steady, driving occupancy and rental income.
Further, SmartCentres REIT’s portfolio is heavily weighted toward essential retail, anchored by national brands Canadians rely on every day. These are defensive tenants with businesses that don’t see demand vanish during downturns. Their stable revenue helps keep SmartCentres’s cash flow predictable year after year.
The REIT’s solid real estate portfolio, high occupancy, and rising rental income position it well to generate strong net operating income (NOI), supporting steady payouts. SmartCentres REIT currently pays a monthly cash of $0.154 per share, yielding over 7%.
This monthly dividend stock will sustain its payouts
SmartCentres REIT is well-positioned to maintain its monthly dividend payments thanks to the strong performance of its core retail assets and its growing mixed-use development pipeline. The REIT’s latest third-quarter results reflect that momentum, with its operating metrics pointing to healthy, durable cash flow growth ahead.
Tenant demand across its portfolio remains solid, enabling SmartCentres to sustain high occupancy levels. At the end of Q3, the REIT’s occupancy rate was 98.6%. This reflects strong demand for its properties and provides flexibility to improve its tenant mix, thereby driving future rental income.
Same-property NOI continued to climb, reflecting the ongoing strength of its underlying leasing activity. The REIT delivered 4.6% growth in the quarter, excluding anchor tenants and 5.9% year to date, translating to a healthy 3.7% overall increase so far this year. Renewal activity has also been highly encouraging. With 5.3 million square feet coming due in 2025, SmartCentres has already renewed nearly 85% by the end of Q3, securing an attractive 8.4% rental spread excluding anchors (6.2% overall). Rent collections remain strong and reliable at about 99%.
The REIT continues to refine its portfolio by adding higher-quality retailers and expanding store formats within existing properties. These initiatives are set to support stable, growing income and reliable dividend payouts.
At the same time, SmartCentres is accelerating investment in mixed-use development. This strategic diversification gives SmartCentres a long runway for growth while tapping into urbanization trends and changing consumer lifestyles. Backed by a substantial land bank and a solid balance sheet, the REIT is setting the foundation for multi-year growth and steady distributions.
