Investing in dividend stocks can help generate recurring passive income. While many of Canada’s best dividend stocks pay quarterly, a select group pays monthly, providing a more consistent stream of passive income.
Monthly dividend stocks can be particularly attractive for retirees, income investors, and those looking to reinvest payouts more frequently to accelerate long-term portfolio growth. However, dividend frequency alone shouldn’t drive an investment decision.
The best income stocks are backed by fundamentally strong businesses with resilient cash flows and target a sustainable payout ratio that can support dividends through different market environments. TSX stocks with a proven track record of rewarding shareholders are often better positioned to continue delivering dependable income over the long term.
Against this background, here is a compelling monthly paying dividend stock offering a 4.5% yield.
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A compelling monthly paying dividend stock
Investors seeking dependable passive income could consider Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR.UN), or CAPREIT. It is one of the dependable TSX stocks paying monthly cash.
CAPREIT owns a large portfolio of residential apartment suites and townhomes across Canada, with a smaller presence in the Netherlands. Residential real estate tends to generate stable rental income, making the real estate investment trust (REIT) an attractive option for income-focused investors.
The REIT’s high occupancy and focus on driving average monthly rents (AMR) across its properties augur well for its payouts. Further, management continues to strengthen the portfolio by upgrading existing assets, recycling capital from non-core properties, and targeting high-quality acquisitions in attractive Canadian markets.
The REIT is also increasing its exposure to regions with strong population growth and favourable long-term housing fundamentals. These initiatives are designed to boost earnings, improve cash flow, lower risk, and enhance the overall quality of the portfolio.
Notably, since its initial public offering (IPO), the REIT has increased its monthly cash distributions by 117%. Today, it pays a monthly distribution of $0.129 per unit, yielding more than 4.5%.
Into CAPREIT’s Q1 results
Despite ongoing sector-wide challenges, CAPREIT has had a solid start to the year and delivered steady growth in Q1, reflecting the resilience of its high-quality portfolio.
The REIT continues to focus on targeted pricing and leasing strategies while placing greater emphasis on retention. These initiatives helped maintain strong occupancy across the Canadian residential same-property portfolio, which stood at 97.1% as of March 31, 2026.
While turnover remains concentrated in shorter-term leases, CAPREIT continues to benefit from rental growth through lease renewals and significant mark-to-market opportunities across the broader portfolio. As a result, same-property Canadian residential occupied AMR increased 2.9% year over year to $1,726, up from $1,677 on March 31, 2025. This growth contributed to a 1.1% increase in same-property operating revenues during the first quarter.
The company’s disciplined approach to cost control and procurement efficiency also continued to pay off. Same-property Canadian net operating income (NOI) rose 2.0% year over year, while NOI margins expanded to 62.2% in Q1 2026.
The quarter highlights CAPREIT’s ability to generate steady growth even amid sector-wide challenges, supported by strong occupancy, rental upside, and improving operating efficiency.
The bottom line
Supported by strong occupancy levels, steady rental growth, disciplined cost management, and a proven history of increasing distributions, CAPREIT is an attractive option for income-focused investors seeking reliable monthly cash.
