5.8% Dividend Yield: I’m Loading Up on This Monthly Passive Income Stock

This grocery-anchored REIT won’t wow you with excitement, but its steady tenants and monthly payout could make it a practical TFSA income holding.

Key Points
  • Monthly dividend stocks can feel more “real” than quarterly payers
  • Crombie REIT owns grocery-anchored properties with long leases
  • > s="prose dark:prose-invert flex-1">The unit price has been hit by rate fears more than business stress

It can be worth loading up on a monthly passive income stock, even when the yield isn’t exactly high. That’s because it turns investing into something you actually feel working in real time. Instead of waiting months between payouts, monthly income lines up with bills and groceries, and additional income shows up every few weeks.

That steady cadence can make investing feel less abstract and more practical, especially inside a Tax-Free Savings Account (TFSA) where every dollar arrives tax-free. When the underlying business remains stable, those monthly payments can build momentum that long-term investors value as much as growth. So let’s look at one stable option to consider on the TSX today.

A woman shops in a grocery store while pushing a stroller with a child

Source: Getty Images

CRR.UN

Crombie REIT (TSX: CRR.UN) has quietly gone through a tough stretch, largely because rising interest rates hit the entire real estate investment trust (REIT) sector hard. Like many real estate names, its unit price pulled back as investors worried about refinancing costs and the future of property valuations. That pressure weighed on performance even though Crombie’s underlying assets remained largely unchanged. As a result, the market has treated the dividend stock more harshly than its fundamentals suggest.

Despite that weakness, Crombie’s business remained steady beneath the surface. It owns grocery-anchored retail properties across Canada, many of them tied to long-term leases with Empire Company and Sobeys. Grocery stores don’t cycle in and out of favour, and foot traffic tends to hold up even when consumer spending tightens elsewhere. That stability has helped Crombie continue operating smoothly while sentiment around REITs stayed negative.

Into earnings

In its recent earnings, Crombie has continued to show consistent rental income supported by high occupancy and strong tenant quality. Grocery-anchored properties remain one of the most resilient segments in real estate, and that has shown up in steady cash flow and reliable rent collection. Management also emphasized disciplined capital management and a focus on maintaining balance sheet flexibility during a higher-rate environment. Nothing in the results suggested stress in the core business.

From a valuation standpoint, Crombie now trades at levels that reflect broad pessimism about real estate as a whole rather than its own operating reality. When interest rate fears dominate headlines, even high-quality dividend stocks can end up priced as if their income is at risk. For long-term income investors, that disconnect can create opportunity. You’re essentially being paid a higher yield while waiting for conditions to normalize.

Earning income

Crombie can be a solid choice for monthly passive income now as its cash flow is rooted in everyday consumer behaviour. People buy groceries regardless of economic cycles, and that reliability flows directly into Crombie’s ability to pay its monthly distribution. Long-term leases and essential tenants provide visibility that many other real estate operators simply don’t have. That predictability matters when your goal is dependable income rather than rapid growth. And right now, here’s what investors could bring in predictably every month from a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENT
CRR.UN$15.44453$0.90$407.70Monthly$6,994.32

Another reason it works for monthly income is the psychological benefit of consistency. Receiving income every month makes it easier to plan, reinvest, or supplement cash flow without needing to time markets or sell units. Inside a TFSA, that income stays fully sheltered, which quietly boosts long-term returns. As interest rate pressure eventually eases, investors collecting income along the way may also benefit from unit price recovery.

Bottom line

For investors building a monthly passive income stream, Crombie REIT fits the profile of a business that has been dragged down by sentiment rather than fundamentals. It offers essential exposure, steady cash flow, and a monthly payout that rewards patience. In a market that keeps swinging between fear and optimism, getting paid every month can be one of the calmest ways to stay invested.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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