For investors seeking reliable passive income, dividend-paying companies are among the cheapest and most reliable investments. However, dividend payments are not guaranteed. Thus, passive-income seekers should focus on companies with strong fundamentals, a durable track record of rewarding shareholders, and solid earnings to sustain payouts through all market cycles. These firms can consistently pay dividends and even grow them over time.
Against this background, here is a dividend gem offering a 7.3% yield every passive investor should know about.
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The 7.3% dividend gem
While the TSX has several high-quality dividend stocks, SmartCentres REIT (TSX: SRU.UN) stands out for its durable dividend payment history, sustainable and high yield, and monthly payouts. With a current yield above 7.3% and dividends distributed monthly, it offers investors predictable income that feels more like a paycheque than a typical investment return. Whether you’re covering living costs or simply reinvesting to grow your portfolio faster, these frequent payouts can be incredibly rewarding.
SmartCentres’s dividend payouts are dependable and supported by its high-quality real estate portfolio. The real estate investment trust (REIT) owns 197 mixed-use properties across Canada, with a strong presence in highly populated areas where people shop, live, and work. High-traffic locations translate into consistent tenant demand, keeping occupancy levels high and rental income flowing steadily.
Further, the REIT benefits from its high-quality tenants. Its portfolio is currently heavily weighted toward essential retail. Many of its properties are anchored by well-known national retailers that Canadians visit regularly. These businesses continue to perform even during economic slowdowns. With tenants that tend to be resistant to downturns, SmartCentres benefits from stable revenue and reliable cash generation year after year.
Overall, rising rental income, resilient tenants, and a high-quality property base allow the REIT to generate high net operating income (NOI), which, in turn, supports its ongoing dividend payouts.
Earn $154 per month in passive income from this dividend gem
SmartCentres REIT has a long track record of paying steady monthly dividends. The company’s core retail portfolio continues to perform well, while its growing mixed-use development pipeline adds meaningful potential for future expansion. The REIT’s latest third-quarter (Q3) results highlight that momentum, signalling durable cash flow that can support dividends for years to come.
Notably, occupancy remained exceptionally strong at 98.6% in Q3 for SmartCentres, reflecting ongoing demand from retailers and giving the REIT room to optimize its tenant mix and drive rental income higher. Same-property NOI continued to rise, supported by healthy leasing trends. Excluding anchor tenants, NOI grew 4.6% in the quarter. Renewal activity has also been impressive with nearly 85% of 2025 expiries already committed at higher rents, and rent collections holding firm around 99%.
SmartCentres is also refining its tenant base by adding stronger brands and enhancing shopping formats within its existing properties. These measures will contribute to stable and growing earnings. Beyond retail, the REIT is making meaningful progress in mixed-use development, tapping into demand for urban living and creating new long-term revenue sources. Its substantial land bank and solid balance sheet provide a foundation for multi-year growth and continued dividend stability.
For passive-income investors, SmartCentres is a compelling stock. Buying 1,000 stocks of this REIT today would generate about $154 per month in passive income based on its current monthly payout of $0.154 per share.
