Building a steady income stream is just as important for me as growing wealth. And while most dividend stocks pay quarterly, I love stocks that go a step further by delivering cash every single month. That consistency in income could make a big difference, whether I want to reinvest regularly or cover my ongoing expenses. Let’s take a closer look at one of the top Canadian monthly dividend stocks that stands out for its reliable payouts and solid yield.
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A steady income backed by essential real estate
When it comes to generating consistent monthly income, not many sectors offer the same level of reliability as necessity-based real estate. And Slate Grocery REIT (TSX:SGR.UN) could be a great example of that. This real estate investment trust (REIT) has already carved out a niche with its portfolio of grocery-anchored properties. It mainly focuses on owning and operating grocery-anchored properties across the U.S. — a segment known for its resilience even during economic slowdowns.
Currently, Slate Grocery REIT trades at $16.19 per share with a market cap of about $960 million. Over the last year, the stock has climbed 18%, reflecting stable performance despite the broader market volatility.
More importantly, it offers an attractive 7.3% annualized dividend yield at the current market price and pays distributions every month.
What else makes it appealing for income investors
In the fourth quarter of 2025, Slate Grocery REIT generated $42.2 million in net operating income (NOI), up slightly from the prior year. Its rental revenue also grew 2.9% year over year (YoY), showing that its underlying business is still moving in the right direction.
More importantly for income investors, funds from operations (FFO) remained steady at $0.25 per unit for the quarter. That consistency matters because FFO is one of the key measures used to assess a REIT’s ability to sustain its distributions. Even though its payout ratio sits at around 86.9%, the REIT’s steady FFO suggests its monthly dividend currently remains well supported by cash flow.
On a trailing 12-month basis, Slate’s same-property net operating income (NOI) rose 1.9% YoY, reflecting stable growth from properties already in its portfolio.
At the same time, the REIT’s leasing activity also highlights its strength. In 2025, it completed 1.7 million square feet of leasing, with renewal rents coming in nearly 15% higher than expiring leases and new deals significantly above in-place rents. This simply means that Slate still has room to grow its rental income over time since its current rents remain well below broader market levels.
Positioned for long-term growth
Beyond its current income appeal, Slate Grocery REIT continues to focus on long-term growth. The REIT is also actively managing its portfolio to improve quality and flexibility. During the fourth quarter, it acquired the remaining interest in a joint venture portfolio, giving it full control and more refinancing flexibility. At the same time, it sold a non-core property to help reduce leverage and strengthen the balance sheet.
Financially, the REIT has taken steps to improve stability as well. About 87.8% of its debt is fixed-rate, with a weighted average interest rate near 5%, helping protect it from near-term rate volatility.
Overall, Slate Grocery REIT’s steady FFO, consistent leasing activity, and stable occupancy all support its ability to maintain monthly distributions, making it a reliable monthly dividend stock to own.
