How Investing $45,000 in This Dividend Stock Could Generate $248 a Month in Passive Income

This Canadian monthly-paying dividend stock is known for its durable dividend payment and attractive yield.

Sneha Nahata

Sneha is a M.Sc. in finance and has been a Motley Fool contributor since mid-2020. Sneha specializes in writing about bank, energy, consumer and TMT (technology, media, and telecom) stocks. She focuses on identifying winning long-term stock picks.

Published May 14, 8:30 pm EDT

A $45,000 investment in monthly dividend-paying stocks can help generate recurring passive income. However, income-focused investors should consider companies with strong underlying fundamentals, the ability to grow profitably, sustainable payout ratios, and a proven history of rewarding shareholders across market cycles.

That said, investors should avoid concentrating all of their capital into a single stock. While a high-yield dividend payer may appear attractive, diversification remains essential to reduce risk and create a more balanced income portfolio. Spreading out investments can help protect income streams during periods of economic uncertainty.

With this background, here is a dividend stock known for its durable dividend payments and attractive yield. Investing $45,000 in this TSX stock could generate $248 in passive income.

shoppers in an indoor mall — Source: Getty Images

A top monthly passive income stock: SmartCentres REIT

For investors seeking reliable monthly passive income, SmartCentres REIT (TSX:SRU.UN) is an attractive option. The REIT has a strong history of uninterrupted, steady cash distributions to its shareholders.

The REIT’s distributions are supported by its resilient cash flow, driven by a high-quality real estate portfolio. It owns a diversified mix of retail and mixed-use properties, many of which are located in prime locations where leasing demand remains strong. These locations help maintain strong occupancy levels while also giving the company greater pricing power in lease negotiations. As a result, SmartCentres can generate steady net operating income (NOI), supporting its payouts.

SmartCentres REIT also benefits from a reliable tenant base, which helps reduce counterparty risk and supports higher rent collection even during periods of economic uncertainty.

Its attractive locations, high-quality tenant base, and strong leasing demand provide a solid foundation for its ongoing distributions. The REIT currently distributes $0.154 per unit each month, which works out to an annualized yield of approximately 6.6% based on its closing price of $27.95 on May 13.

Into earnings

SmartCentres REIT has entered 2026 with strong operating momentum, supported by resilient retail demand, rising rents, and strong occupancy levels. Steady customer traffic and a stable tenant base continued to boost same-property NOI, while leasing and renewal activity across the retail portfolio drove higher base rents.

The REIT’s leasing performance remained particularly impressive, with 80% of 2026 lease maturities already completed at meaningful rental increases. Excluding anchor tenants, renewal rents rose 11.5%, highlighting the pricing power of its retail assets. Tenant retention also remained exceptional, supported by near-99% cash collections and continued demand from core retailers.

Leasing activity stayed strong during the quarter, with approximately 35,500 square feet of vacant space leased, bringing total leasing in 2025 to roughly 430,000 square feet. Demand for newly built retail space also accelerated, with 125,000 square feet executed year-to-date.

As of March 31, 2026, the REIT reported a robust in-place and committed occupancy rate of 97.6%, while same-property NOI increased 1.4%, or 3.4% excluding anchor tenants.

SmartCentres to sustain payouts

SmartCentres REIT is well-positioned to sustain its payouts, supported by stable operations and high occupancy across its retail properties. The REIT has significant growth potential through its expanding pipeline of retail and mixed-use developments and large, underutilized landbank.

It continues to enhance the quality of its portfolio and advance the development projects, which are expected to generate steady income growth, increase funds from operations (FFO), and support sustainable distributions while enhancing its net asset value.

In addition, the company is moving ahead with a retail expansion program that management believes will contribute positively to FFO growth over time.

Overall, SmartCentres REIT is well-positioned to continue rewarding shareholders with steady payouts.

An investment of $45,000 in SmartCentres stock could generate approximately $248 per month in passive income.