How a $10,000 Investment in This Dividend Stock Could Generate Over $54 a Month in Passive Income

Investing in dividend stocks can help investors generate passive income. While several Canadian stocks pay dividends, a few among them offer monthly payments and relatively high yields. These stocks enhance a portfolio’s income-generating potential, supporting day-to-day expenses or can be reinvested to compound returns.

However, dividend stocks should not be judged by yield or payment frequency. Dividends are not guaranteed, and an unusually high yield can sometimes signal underlying problems, often reflecting a drop in the company’s share price.

Therefore, while selecting dividend stocks, investors should focus on businesses with strong fundamentals, stable cash flows, resilient payouts, and the financial strength to sustain and grow their dividends over time. Companies with dependable earnings and the ability to expand profitably remain well-positioned to return cash to shareholders and sustain payouts across different market environments.

Against this backdrop, here is a monthly-paying dividend stock with a 6.6% dividend yield worth considering now. By investing your $10,000 in this Canadian dividend stock, investors could generate over $54 a month in passive income.

A reliable Canadian monthly dividend stock: SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) is a dependable high-yield dividend stock for investors seeking consistent monthly passive income. The real estate investment trust (REIT) pays $0.154 per share each month, yielding over 6.6% annually. This relatively high yield and steady distribution history make the REIT an attractive dividend stock.

The REIT’s distributions are supported by a strong portfolio of high-quality properties and a solid tenant base, which drives its net operating income (NOI). Most of its properties are located in prime areas with solid leasing demand. High lease renewal rates and strong retail tenants drive rental income and resilient cash flow over time.

SmartCentres ended 2025 on a solid note, driven by strong tenant demand across its portfolio and high occupancy. The REIT ended the year with an occupancy rate of 98.6%, reflecting the continued appeal of its properties. Its same-property NOI increased 3.7% year over year, driven by leasing and renewal activity in its retail assets, along with stabilization in occupancy levels in its self-storage and apartment rental segments.

Leasing activity remained robust, with about 430,000 square feet leased during the year. Rental growth from lease renewals was also notable, rising 8.4% excluding anchor tenants. Additionally, the REIT collected more than 99% of its rent, reflecting a stable tenant base and a reliable income stream.

Looking ahead, the ongoing strength in SmartCentres’s retail portfolio will continue to drive its NOI and dividend payments. At the same time, SmartCentres is expanding beyond retail through a growing pipeline of mixed-use developments. This strategy is intended to diversify revenue sources. In addition, the REIT’s substantial land holdings and a solid balance sheet augur well for future growth and will likely support its distributions.

Earn over $54 in monthly passive income with SmartCentres

SmartCentres REIT is a reliable passive-income stock offering monthly payouts and an attractive yield. At the current market price, investing $10,000 in SmartCentres REIT can generate over $54 in monthly dividend income. On an annual basis, this equates to more than $650 in dividend earnings.