In times of uncertainty, one looks for a safe haven. That’s what the world witnessed in 2025 as US tariffs created huge volatility in currencies, roiled geopolitical relations, and encouraged central banks to buy more gold. Even in the world of digital payments and crypto, one often finds solace in the traditional form of exchange, which is gold. Similarly, e-commerce has caught up. However, it cannot replace physical stores, even when they are expensive to manage.
Where to look for super-safe monthly dividends?
Traditional businesses have matured, earning stable and regular cash flows. That is what makes them safe and dependable. They may not give growth, but can give assured returns even in difficult times.
One of the traditional forms of business is real estate. Even when most work happens on the cloud, real estate prices keep increasing. Because land is limited, it takes decades to make a particular parcel of land valuable. Constructing a structure is not enough. That structure should appeal to the people, bring in footfall, and encourage buyers to pay a good price for it. That is development.
RioCan REIT
RioCan REIT (TSX:REI.UN) has the maximum retail stores in such developed places. Around 50% of its properties are located in the Greater Toronto Area, where most high-income earners reside. That helps it fetch higher rent. In its Investor Day presentation, RioCan unveiled its plan to increase per unit funds from operations (FFO) at a compounded annual growth rate (CAGR) of 3.5% between 2026 and 2028. It plans to do so by selling properties with lower rent and reinvesting that money in properties with higher rent. This recycling of capital could be to the tune of $1.3 to $1.4 billion.
What’s unique about RioCan is its diversified tenant base, with no single tenant accounting for 5% of the rental income. This makes its dividends safer. However, the REIT took a hit during the pandemic and slashed dividends by a third as lockdowns significantly reduced occupancy levels. This dividend cut helped it reduce the dividend payout ratio to a manageable level of 70%.
The REIT is growing its dividends annually to reach the pre-pandemic level of $1.44 per unit per year from $1.154 in 2025. Its focus on higher cash flow will help it achieve the pre-pandemic level of distribution.
SmartCentres REIT
Another safe dividend stock with a monthly payout is SmartCentres REIT (TSX:SRU.UN). Unlike RioCan. SmartCentres retained its dividends even during the pandemic despite its payout ratio crossing the 90% mark. This confidence and safety come from Walmart, its biggest tenant, which contributes 25% of rental revenue. Walmart itself is a recession-proof business, and being its landlord makes SmartCentres well prepared for a downturn.
While SmartCentres’ payouts are more secure than RioCan’s, the former doesn’t grow its dividends much. Unlike RioCan, SmartCentres has expanded into mixed-use properties, wherein it takes city corners and develops commercial, residential, and warehouse properties to make its retail stores more valuable and fetch higher rent. The capital spent on building houses is repaid when they are sold for capital gain.
Investing $44,000 in these ultra-high-yield dividend stocks
Buying 1,000 units of each REIT, RioCan and SmartCentres, can fetch you $1,160 and $1,850 in annual dividends, respectively. Since their payout is monthly, you can get $250.80 per month. To buy 1,000 units of each, you need to invest $44,000 today.
| Stock | Share Price | Dividend per Share | Dividend on 1,000 shares | Investment amount |
| RioCan REIT | $18.51 | $1.154 | $1,154 | $18,510 |
| SmartCentres REIT | $25.59 | $1.85 | $1,850 | $25,590 |
| Total | $3,004 | $44,100 |
If you do not have $44,000 now, you can consider investing $4,000 per year in each of the two units and use the distributions to buy more units. However, now is a good time to buy the dip as you can lock in a higher yield of 6.3% and 7.2%, respectively. The REIT unit price will grow to its average price of $23 and $30 in the next five years, reducing its yield.
