Building a portfolio that generates reliable passive income could make a big difference in your portfolio over the long term. While many dividend stocks pay investors every quarter, monthly dividend stocks could provide a more consistent stream of cash flow that investors can use for expenses or reinvest for compound growth.
That’s one of the main reasons why income-focused investors often hold high-quality real estate investment trusts (REITs) in their portfolios. These businesses typically own income-generating properties and distribute a large portion of their cash flow back to investors.
Among top Canadian REITs, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) looks like a really attractive option. With a strong retail portfolio, expanding development pipeline, and an attractive 6.6% yield, this monthly dividend stock deserves a closer look. Let me give you more reasons why SmartCentres stock could be an attractive addition to your portfolio.
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SmartCentres stock continues delivering stable growth
If you don’t know it already, SmartCentres REIT is one of the country’s largest REITs. This Vaughan-based company develops, owns, manages, and leases a wide range of properties, including shopping centres, rental residences, office buildings, industrial facilities, condos, and self-storage sites.
Its portfolio currently includes 198 strategically located properties across Canada, giving it broad exposure to some of the country’s most important retail and residential markets.
After climbing 12% over the last five months, the stock currently trades at $28.24 per unit, giving SmartCentres a market cap of more than $4 billion. More importantly for income investors, it offers a dividend yield of roughly 6.6% at this market price, with monthly payouts.
One main reason behind the stock’s stable performance over the last few months has been resilient retail demand. SmartCentres has continued achieving strong tenant retention rates, while lease renewals delivered average rent growth of 11.5% in the first quarter, excluding anchor tenants. That pricing strength highlights the value of its property portfolio and strategic locations.
Solid financial performance supports the dividend
In the quarter ended in March, SmartCentres posted net operating income (NOI) of $137.7 million, up 0.7% year-over-year. That improvement was mainly driven by lease-up activity and higher renewal rents across its retail portfolio.
The REIT reported funds from operations (FFO) of $0.54 per unit and adjusted FFO of $0.52 per unit. While these figures declined slightly from the prior year because of higher interest and administrative expenses, the company still generated healthy and stable cash flow overall.
Meanwhile, its net profit and comprehensive income rose sharply by $139.5 million in the latest quarter, supported largely by fair-value gains on investment properties and improved property valuation assumptions.
At the same time, SmartCentres’ stable retail portfolio continues providing predictable recurring cash flow, which helps support its attractive monthly dividend payments.
These major projects could support long-term growth
While its dividend remains a major attraction, SmartCentres is also investing heavily in future growth opportunities. The company is currently expanding its retail footprint with developments planned in Kingston, Lindsay, and Winnipeg.
Similarly, it continues building out its self-storage business with projects underway in Montreal, Laval, Burnaby, and Victoria. These facilities are expected to open between 2026 and 2027, creating additional long-term revenue streams.
One of its most important development projects is ArtWalk condo Tower A in the Vaughan Metropolitan Centre. Approximately 93% of the project’s 340 units have already been pre-sold, which reduces risk while strengthening future earnings visibility.
Why this monthly dividend stock stands out
SmartCentres combines several qualities that income-focused investors often seek, including stable cash flow, a diversified real estate portfolio, monthly dividend payments, and long-term growth potential. Moreover, its focus on value-oriented retail properties clearly continues driving strong tenant demand, while its development pipeline creates additional opportunities for earnings expansion in the years ahead.
