One of the easiest ways to make investing feel less stressful is by owning stocks that actually pay you while you wait. When you own high-quality dividend stocks that are constantly generating passive income, it becomes much easier to ignore short-term price swings and all the market noise.
That’s exactly why high-quality dividend stocks, especially ones that pay investors monthly, are so appealing for Canadian investors.
That steady stream of cash every month is a constant reminder that your hard-earned money is always working for you and generating a return.
It helps build confidence, makes it easier to hold through volatility, and gives you flexibility. Furthermore, in addition to the mental benefits, the income you receive can either supplement your cash flow or be reinvested right away to accelerate the rate at which your portfolio is compounding.
Of course, just like with any dividend stock, it’s essential to make sure the underlying business is high quality and reliable. You want a company that can hold up in tougher environments, has at least some growth potential, and pays a dividend that’s truly sustainable.
So, with that in mind, if you’re looking for a solid dividend stock to buy for 2026 to boost your portfolio’s passive income, Morguard North American Residential REIT (TSX:MRG.UN) is one worth a closer look.
Why is Morguard Residential one of the best monthly dividend stocks to buy now?
If you’re looking for high-quality monthly dividend stocks, the real estate sector is often one of the best places to start.
High-quality Canadian REITs benefit from steady demand, consistent cash flow, relatively predictable expenses, and long-term growth potential. And residential real estate, in particular, is one of the most defensive industries you can invest in.
And while there are a handful of high-quality residential REITs in Canada, Morguard stands out because of how diversified its portfolio is. While many Canadian REITs only own properties in Canada, a significant portion of Morguard’s assets are actually located in the United States.
That geographic diversification is a massive advantage for Morguard because it helps reduce risk while also giving investors exposure to faster-growing U.S. rental markets.
In total, Morguard owns a portfolio of 43 real estate properties across North America, made up of 42 multi-suite residential communities and one retail property. That includes 16 Canadian apartment communities located in Alberta and Ontario, as well as 26 U.S. apartment communities spread across states like Florida, Texas, Georgia, North Carolina, and Virginia.
Even more importantly, occupancy remains strong on both sides of the border at roughly 95%, which helps support consistent cash flow and, ultimately, Morguard’s reliable monthly dividend.
A top passive income generator that’s still undervalued
From a valuation standpoint, Morguard isn’t wildly cheap. However, in this environment, no high-quality Canadian stock really is. So, the fact that it’s still trading at a discount compared to its historical averages makes it one of the best dividend stocks to buy now.
For example, right now, the REIT trades at a forward price-to-adjusted funds from operations (P/AFFO) ratio of roughly 12.1 times. That’s below its five-year average of about 13.6 times.
Furthermore, with Morguard trading off its 52-week high, its dividend yield has climbed to roughly 4.5%, which is slightly above its historical average of around 4.3%.
And most importantly, the payout is sustainable and continues to grow. Since 2021, the real estate stock has increased its dividend four separate times, including its most recent hike following the third quarter this year.
So, if you’re looking for a monthly dividend stock to buy now and hold for years, Morguard North American Residential REIT is certainly one of the best to consider.
