If you are looking for an income supplement by investing, monthly dividend stocks can be a comfort. There are not many monthly dividend stocks left in Canada. However, there are a few stocks that are still worth owning.
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REITs are the perfect stocks for reliable dividends every 30 days
Real estate stocks are a particularly interesting place to look for monthly dividends. Rent is collected monthly, and real estate investment trusts (REITs) are required to distribute most of their profits to maintain certain tax benefits. Based on the business profile, debt structure, and asset class, certain REITs can deliver exceptionally reliable monthly income returns.
In fact, for most investors, REITs are an ideal alternative to owning physical real estate investments. You don’t need large sums of money to invest. You don’t need to make midnight repair calls. You don’t have to worry about finding tenants or evictions.
If you like the care-free life, investing in REITs for monthly income is a great idea. The great news is that many of these stocks are cheap and could be set for a rebound in 2026. Here are three REITs in different sectors that are worth holding now.
A top industrial REIT for monthly dividends
Granite REIT (TSX: GRT.UN) is a solid pick (like its name) for monthly dividends. With over 134 properties and a market cap of $4.7 billion, it is one of the largest industrial real estate stocks in Canada.
The REIT has delivered better-than-expected results this year. Cash flows per unit are up 8% year to date. Occupancy is sitting over 97%, and long-term leases to a mix of quality tenants (average of 5.5 years) are supporting growing cash flows.
It just increased its distribution for the 15th consecutive time. Granite stock now pays a $0.2958 per unit monthly dividend. That equates to a 4.5% yield right now.
A top residential REIT for monthly income
If you want exposure to residential rentals, BSR REIT (TSX: HOM.UN) might be one of the most interesting. Unlike all its TSX peers, BSR has no exposure to the suffering Canadian residential market. It operates garden-style communities across the U.S. Sunbelt but primarily in top Texas markets like Houston and Dallas.
BSR has been rotating and upgrading its portfolio in recent years. Its average property age has rapidly decreased, and the quality and location of its properties have improved.
Despite a temporarily weak rental market, the REIT has a plan to systematically grow cash flows per unit by 20-30% over the next three years.
The REIT is cheap compared to U.S. peers. Today could be a good buying opportunity. This stock pays a $0.065-per-share dividend monthly. That equates to an attractive 4.76% yield today.
A top retail REIT stock for monthly dividends
First Capital REIT (TSX: FCR.UN) is another defensive REIT. It owns 22 million square feet of well-located, grocery-anchored properties across Canada.
Grocery-anchored retail is very defensive because of its essential nature to society. Its tenants are made up of top grocery, dollar store, financial, pharmacies, and medical tenants (amongst others). With high-end locations, it enjoys +97% occupancy and strong rental rate growth.
This REIT has a rapidly improving balance sheet, so dividend growth could occur in the near future. This stock earns a $0.074-per-unit monthly dividend. That equals a 4.72% yield right now.
