This 6.6% Dividend Play Pays Every. Single. Month.

This Canadian monthly dividend stock delivers steady income and consistency. And for long-term investors, that can make all the difference.

Key Points
  • Plaza Retail REIT (TSX:PLZ.UN) offers a 6.7% annualized dividend yield, providing reliable monthly income by focusing on retail properties with essential goods tenants across Canada.
  • In 2025, Plaza's funds from operations increased by 8.8% to $44 million, with a 97.6% occupancy rate, reflecting strong property demand and effective portfolio management.
  • Plaza's strategic investments in portfolio improvements and essential retail tenant focus ensure stability and long-term growth, enhancing its appeal for income-focused investors.

The obsession with instant gratification often guides new investors to trade instead of investing for the long term. Finding consistent income can feel like searching for a unicorn. We’re surrounded by get-rich-quick ideas and volatile investments that create more stress than stability. But there is a way to earn steady cash every month while building wealth over time.

To achieve that, instead of focusing on short-term wins, you may want to focus on the Foolish Investing Philosophy. It’s about owning businesses that reward investors regularly and having the patience to let those rewards compound. One such great opportunity could be Plaza Retail REIT (TSX: PLZ.UN), a lesser-known name that still stands out for its consistent monthly payouts.

monthly calendar with clock

Source: Getty Images

A great stock to own for monthly income

If you don’t know it already, Plaza Retail REIT is a Canadian real estate investment trust focused on retail properties across Ontario, Quebec, and Atlantic Canada. It owns and develops shopping centres and standalone stores tied to everyday needs.

Its portfolio includes around 211 properties spanning approximately 8.9 million square feet. Most of its tenants are national brands focused on essential goods, value, and convenience. That matters as people continue spending on groceries, pharmacies, and discount stores regardless of the economic cycle.

Plaza Retail REIT currently trades at $4.26 per share with a market cap of $472.1 million. Over the past year, Plaza Retail stock has delivered a 12.1% return. While it has dipped slightly in the short term, the broader trend remains positive.

The biggest attraction is its solid 6.7% annualized dividend yield, paid monthly. That translates to about $54.50 per month for every $10,000 invested, excluding any share price gains.

Building a solid foundation

In 2025, Plaza Retail REIT’s funds from operations (FFO) rose to $44 million, up 8.8% from 2024. At the same time, its net operating income (NOI) climbed 2.7% year over year to $77 million. During the year, its committed occupancy stood at 97.6%, highlighting strong demand for its properties.

Meanwhile, the company is also improving its portfolio through optimization and intensification, adding about $3 million in incremental NOI during the year.

More importantly, Plaza’s dividend coverage is improving. Last year, its FFO payout ratio declined to 71% from 77.2%, while its adjusted funds from operations (AFFO) payout ratio fell to 93.3% from 98%.

In March 2026, Plaza Retail REIT announced a monthly distribution of $0.02333 per unit, or $0.28 annually, highlighting its consistent payout approach.

Looking ahead: A future built on essential retail

Plaza Retail REIT continues to invest in long-term growth through development and portfolio improvements. While these initiatives may create some short-term volatility, they are expected to strengthen its performance over time.

Overall, the company focuses on essential retail tenants providing stability, even in uncertain environments. Combined with its monthly income and disciplined strategy, it offers a dependable option for investors.

Fool contributor Jitendra Parashar 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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