High-yielding dividend stocks seem like attractive investments to own for diversifying your portfolio and generating steady income. However, it’s important to know that not every high-yield stock is worth investing in for the long run. The best TSX dividend stocks provide attractive dividend yields that are backed by strong underlying businesses, solid fundamentals, a reliable track record, and the ability to remain profitable.
To this end, I will discuss a monthly dividend stock today that can be a formidable investment for the next decade or more.
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Top real estate investment trust
Income-focused investors seeking monthly returns with high yields could consider investing in a Real Estate Investment Trust (REIT) like SmartCentres REIT (TSX: SRU.UN). Many stocks trading on the TSX offer high-yielding dividends, but the ability to sustain those payouts for the long haul is what makes one an attractive investment.
SmartCentres is one of the largest fully integrated REITs in Canada. It boasts a best-in-class and growing portfolio of mixed-use properties located throughout the country. The REIT stands out on the TSX for its high-yielding returns, but that is not everything that makes it a good investment to consider.
SmartCentres REIT pays its investors $0.15 per unit each month, translating to an annualized dividend yield of over 6%. SmartCentres supports these monthly distributions with a high-quality portfolio of real estate properties that generate consistent cash flows.
Its portfolio includes retail and mixed-use properties spread across key markets in Canada. The strategic location of its properties drives strong demand, attracting tenants and solidifying the leasing demand. SmartCentres can maintain high occupancy rates, enjoy growing revenue through rental growth, and generate a healthy net operating income that lets it comfortably fund its monthly payouts.
SmartCentres leases properties to various tenants with strong financial stability to minimize the risk to its ability to collect rent. Given its proven track record of monthly dividends, it can be a compelling investment for Canadians seeking reliable monthly returns.
Recent performance
SmartCentres reported 1.4% year-over-year growth in its same-properties net operating income in Q1 2026 compared to the same period last year. Higher customer traffic and its reliable tenant base can be attributed to be the main drivers of this growth. The REIT also saw its in-place and committed occupancy hit the 97.6% mark, further reflecting the demand for its properties.
Among the good news, around 80% of the leases that were set to expire this year have already seen renewals, further increasing the timeframe for it to generate predictable cash flow. The REIT also retained most of its occupants and reported 99% rent collection.
Foolish takeaway
SmartCentres REIT continues benefiting from the strength of its retail-focused property portfolio, boasting solid fundamentals that indicate the ability to continue distributing its monthly payments to investors. Beyond its core operations, the REIT is expanding its development pipeline to unlock even more revenue streams and inject substantial long-term growth potential.
All things considered, I would consider SmartCentres REIT a good investment for Canadians seeking reliable monthly passive income and long-term growth through capital gains.
