This 7% Dividend Stock Is My Go-To for Cash Flow Planning

This TSX monthly dividend stock offers a high yield backed by grocery-anchored real estate.

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Key Points
  • Reliable monthly payouts could make cash flow planning easier for long-term income investors.
  • Slate Grocery REIT (TSX:SGR.UN) owns grocery-anchored properties across major U.S. markets.
  • Its dividend yield sits near 7% even after a strong stock performance in the last year.

If you want more predictable cash flow, it may be worth focusing on investments that pay regular income and are backed by businesses with stable earnings. A high yield alone is not enough, but a high yield tied to the essential real estate sector could be worth a closer look.

Keeping that in mind, Slate Grocery REIT (TSX: SGR.UN) could be worth considering for investors who prioritize reliable monthly income. Its grocery-anchored properties serve everyday needs, and its monthly dividends give income investors a more predictable rhythm. Let’s take a closer look at why Slate Grocery REIT could be a reliable choice for cash flow planning.

frustrated shopper at grocery store

Source: Getty Images

A monthly dividend payer tied to essential retail

If you don’t know it already, Slate Grocery REIT is a Toronto-based real estate investment trust (REIT) that owns and runs grocery-anchored real estate across major U.S. metropolitan markets. These properties house grocery stores and other necessity-based retailers, which help support occupancy and rental demand.

After jumping by nearly 19% over the last year, Slate Grocery stock recently traded at $17.20 per unit, giving the REIT a market cap of roughly $1 billion. The stock rewards investors with monthly dividends, with its annualized yield currently sitting near 7%.

Leasing momentum remains strong

Even as macroeconomic concerns have affected the real estate sector sentiment lately, Slate Grocery REIT’s performance is continuing to reflect healthy operating momentum. The REIT completed more than 725,000 square feet of leasing at strong double-digit rental spreads in the first quarter of 2026, with renewals completed 18.9% above expiring rents and new deals signed 49% above comparable average in-place rents.

At the same time, its same-property net operating income (NOI) climbed by US$3.5 million, or 2.1% from a year ago, on a trailing 12-month basis. Adding to the optimism, Slate Grocery’s portfolio occupancy remained stable at 94.4%, showing continued demand for its grocery-anchored locations.

During the quarter, the company’s rental revenue rose 11.8% year-over-year (YoY) to US$59.3 million, and net profit surged 17.5% from a year ago to US$18.9 million. I expect this trend to continue in the years to come as its reliable grocery-focused tenants continue to drive recurring traffic.

Room for rent growth

It’s important to note that Slate’s average in-place rent of US$12.98 per square foot remains well below the market average of US$24.59. That gap gives the REIT a big runway for future rent growth as leases roll over.

More importantly, the REIT’s balance sheet also offers some stability as it has a weighted average interest rate of 5%, with 90.2% of its debt carrying fixed interest rates. That strong financial base reduces its near-term exposure to interest rate volatility.

Foolish takeaway

While Slate Grocery REIT may not be completely risk-free, it definitely offers an attractive combination of monthly income, essential retail exposure, and leasing momentum. With a dividend yield at 7%, it remains one of the most appealing TSX monthly dividend stocks for investors focused on cash flow planning.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.

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