For Canadians seeking reliable passive income, investing in high-quality dividend stocks can be a smart long-term strategy. Among dividend payers, monthly dividend stocks are attractive because they provide a consistent income stream throughout the year. Investors can use these regular payouts to meet expenses or reinvest them more frequently to potentially boost overall returns.
That said, dividends are never guaranteed. That’s why it’s important to focus on fundamentally strong companies with stable cash flows, sustainable payout ratios, and a solid track record of rewarding shareholders through different market conditions.
Against this background, here is a compelling dividend stock offering a 6.4% yield and monthly distributions.
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A top TSX stock that pays cash every single month
SmartCentres (TSX: SRU.UN) is one of the most reliable TSX stocks that pays cash every single month. The real estate investment trust (REIT) has a solid history of durable distributions. At present, SmartCentres pays a monthly dividend of $0.154 per unit, yielding roughly 6.4% annually. More importantly, those payouts are supported by a high-quality real estate portfolio and steady cash-flow generation.
The REIT owns a diversified portfolio of retail and mixed-use properties located in some of Canada’s high-traffic markets. Thus, these properties continue to attract tenants and higher leasing activity, helping SmartCentres maintain strong occupancy levels, increase rent, and generate solid net operating income (NOI). Its ability to consistently grow NOI supports its monthly payouts.
Its tenant roster is another major strength. A high-quality tenant base adds stability to its business, helps reduce rent collection risk, and drives stable cash flows.
Overall, SmartCentres’s solid payout history, consistent monthly distributions, and high yield make it a compelling stock for generating monthly cash.
Into SmartCentres’s Q1 earnings
SmartCentres began 2026 on a strong note, benefiting from rising rental renewal rates and consistently high occupancy across its portfolio, driven by resilient retail demand.
As of March 31, 2026, SmartCentres reported an in-place and committed occupancy rate of 97.6%, highlighting the continued attractiveness of its properties. Same-property net operating income (NOI) increased 1.4% year over year and climbed 3.4% when excluding anchor tenants, reflecting healthy underlying growth across the portfolio. Demand for newly developed retail space also continued to gain momentum during the quarter.
Leasing performance remained a key highlight. SmartCentres has already completed roughly 80% of its 2026 lease renewals, securing significantly higher rental rates in the process. Excluding anchor tenants, renewal rents increased an impressive 11.5%, demonstrating the company’s strong pricing power and the sustained demand for well-located retail space. Tenant retention remained exceptionally high, while rent collection stayed near 99%.
SmartCentres to sustain its payouts
SmartCentres REIT remains well-positioned to sustain its attractive monthly distributions, supported by steady NOI growth, strong traffic across its properties, disciplined lease management, and ongoing tenant demand. In addition, continued leasing momentum and favourable renewals should further strengthen rental revenue in the years ahead.
SmartCentres is also focused on unlocking value from its extensive underutilized landbank. Moreover, the REIT is steadily expanding into mixed-use developments that can diversify revenue streams and create meaningful long-term growth opportunities.
At the same time, strategic portfolio enhancements and a robust development pipeline are expected to drive higher funds from operations (FFO), support monthly distribution, and increase net asset value over time.
If you buy 1,000 shares of SmartCentres REIT near the current market price, you can generate $154 in monthly passive income.
