This Monthly Paying TSX Stock Yields 8.1% and Deserves Your Attention

A strong yield and steady growth make this monthly dividend stock hard to ignore.

Key Points
  • Nexus Industrial REIT (TSX:NXR.UN) offers an 8.1% yield with monthly payouts.
  • Strong leasing, acquisitions, and developments are driving growth.
  • Portfolio upgrades and high occupancy support long-term stability.

As the ongoing geopolitical conflicts in the Middle East continue to take a toll on investor sentiment, it’s natural for long-term investors to focus on stocks that can deliver consistent income. Especially, monthly dividend stocks stand out because they offer a predictable cash flow that can be reinvested or used as passive income.

In this article, I’ll highlight one such TSX stock that’s quietly building momentum while rewarding investors every single month.

A growing industrial REIT with a clear strategy

Nexus Industrial REIT (TSX: NXR.UN) focuses on owning and managing industrial properties across key Canadian markets. Its strategy is simple but effective — acquire quality assets, improve portfolio efficiency, and steadily grow income for unitholders.

Industrial real estate has been one of the resilient segments in recent years, backed by demand from logistics, warehousing, and e-commerce. And Nexus has been actively positioning itself to benefit from these long-term trends.

Strong performance backed by expanding operations

In the fourth quarter of 2025, Nexus posted net profit of $30.6 million, supported by net operating income (NOI) of $33 million and fair value gains of $20.3 million.

More importantly, its industrial same-property NOI rose 2.8% YoY (year-over-year) to $30 million, showing steady growth in its core business.

A big driver behind this performance has been its development and acquisition activity. The REIT completed a 325,000 square foot expansion in St. Thomas and a 115,000 square foot project in Calgary. These developments are expected to generate $4.9 million and $1.7 million in annual stabilized NOI, respectively, with attractive yields.

It also acquired industrial properties in Quebec totaling over 280,000 square feet for $40.1 million, which are expected to add another $2.6 million in annual NOI.

Monthly income supported by high yield

One of the biggest attractions of Nexus Industrial REIT is its monthly dividend payouts. The company pays $0.05333 per unit each month, or about $0.64 annually.

This translates into a dividend yield of nearly 8.1%, making it one of the high-yielding income stocks in Canada.

While its normalized AFFO (adjusted funds from operations) payout ratio was slightly above 100% in 2025, the company expects this to fall below 100% in 2026. That’s an important signal that the payout could become more sustainable going forward.

Portfolio repositioning is strengthening the business

Nexus has also been actively reshaping its portfolio to focus more on industrial assets. In 2025, it sold 19 legacy properties for $79.8 million and continued this trend into 2026 with additional dispositions.

This capital is being redeployed into higher-quality, higher-yielding industrial properties. As a result, the REIT now owns 89 properties with a total of 12.4 million square feet of gross leasable area.

Its industrial occupancy rate stands at a strong 96%, with a weighted average lease term of 6.9 years. These figures clearly reflect the stability and visibility of its future cash flows.

That’s why this fundamentally strong monthly dividend stock is definitely worth keeping on the radar, especially for investors seeking reliable monthly income with long-term upside potential.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

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