Monthly dividends hit different when markets feel jumpy. Instead of waiting for a quarterly cheque, you get a steady drip of cash that can cover bills, top up groceries, or buy more units. Reinvestment happens faster, which can nudge compounding along. The best monthly payers also bring a calmer vibe in choppy markets, as you see progress even when prices wobble. In a Tax-Free Savings Account (TFSA), those payments land tax-free, so you can reinvest right away or let the cash build for a future vacation or emergency fund too. So, let’s look at one to consider.
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REI
RioCan Real Estate Investment Trust (TSX: REI.UN) owns and manages a large portfolio of Canadian retail-focused real estate, with a heavy tilt toward major urban markets. Its properties tend to sit where people already run errands, which helps keep tenants busy and rent flowing. The trust also has mixed-use ambitions, but the core story stays simple. It collects rent from everyday retail and uses that cash to pay unit holders.
It looks relevant now as Canadian REITs sit at the crossroads of two big forces. Interest rates can pinch financing costs, while steady foot traffic supports occupancy and rent growth. RioCan’s latest update showed retail committed occupancy at 98.4% and overall committed occupancy at 97.8%. Those numbers suggest tenants still want the space, even as the market frets about the economy.
The unit price has also told a classic REIT story over the past year. A lot of back-and-forth, with more patience than adrenaline. RioCan traded between about $15.46 and $20.08 over the last 52 weeks, recently up about 3% in the last year. It explains why the yield you see in headlines can swing.
Into earnings
Now, let’s get into the latest earnings, as that’s where confidence gets rebuilt. In the third quarter of 2025, RioCan reported funds from operations (FFO) per unit, diluted, of $0.46, which matched the prior year’s quarter. It also reported an FFO payout ratio of 60%. That combination suggests the distribution rests on cash flow, not wishful thinking.
Valuation looks more interesting when you compare the price to what the properties might be worth. RioCan reported net book value per unit of $24.19 as of Sept. 30, 2025. With the units around $19 at writing, the market has priced it below book value. Book value does not promise anything, but it can hint at a margin of safety when sentiment turns sour.
Looking forward, RioCan tried to be unusually clear about what it wants to deliver. At its 2025 investor day, it targeted core FFO per unit growth of about 3.5% from 2026 to 2028, and 5% over the long term. That guidance does not remove risk, but it does signal a shift back to steady growth. The main risks still sit in the usual places: refinancing costs, a weaker consumer, or a retail slowdown that pressures leasing.
Bottom line
That’s why REI.UN can be a strong dividend stock for Canadians, especially inside a TFSA. It pays monthly, it runs with very high occupancy, and it supports the payout with FFO. And right now, that dividend can bring in quite a lot from a $7,000 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| REI.UN | $19.06 | 367 | $1.16 | $425.72 | Monthly | $6,995.02 |
Now, the unit price still reacts to rate chatter, so you need a long horizon and a steady stomach. But if you want dependable income and a chance at price recovery when the rate cycle turns friendlier, RioCan can fit the job and keep sending you cash while you wait.
