While most dividend stocks pay quarterly, a few companies pay shareholders monthly.
One such Canadian dividend stock is SIR Royalty Income Fund (TSX: SRV.UN), with a market cap of $129 million and an 8% yield.
The fund earns income by collecting a 6% royalty on the revenue of restaurants owned and operated by SIR Corp., a Burlington-based company that runs 55 restaurants across Canada.
The portfolio includes well-known brands like Jack Astor’s, Scaddabush Italian Kitchen and Bar, Reds Wine Tavern, Edna and Vita, Loose Moose, and the new Freida’s Beverage Kitchen concept.
As of January 2026, 52 restaurants are included in the royalty pool. Jack Astor’s is the biggest revenue driver, accounting for 59.4% of pooled revenue in Q1. Scaddabush is the fastest-growing brand, contributing 33.5% of pooled revenue in the same period.
As the fund collects a percentage of sales rather than profits, it is somewhat insulated from cost pressures that squeeze restaurant operators.
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The growth story behind the payout
Monthly payouts were suspended entirely during the pandemic in 2020 and most of 2021. Since then, management has steadily rebuilt and grown the distribution.
The current $0.105-per-unit monthly rate represents a 5% increase over the last six months. The royalty-powered entity has increased its annual dividend from $0.84 in August 2021 to $1.26 in June 2026.
Over the last five years, the TSX stock has returned 186% to shareholders, after adjusting for dividend reinvestments.
Pooled revenue for the full year 2025 came in at $282.2 million, up from $255 million in 2024. Same-store sales grew 2.8% across the portfolio in 2025, with Scaddabush leading at 5.9% growth.
SIR is also investing aggressively in the future.
- The company has renovated 18 Jack Astor’s locations since 2022, adding a contemporary feel and the new Freida’s Beverage Kitchen concept to select sites.
- A new Scaddabush in Barrie, Ontario, was added to the royalty pool in January 2026.
- A new Jack Astor’s in Oshawa and a new Scaddabush in Windsor are both expected to join the royalty pool in January 2027.
- Four more Scaddabush locations are in development in Aurora, Kanata, London, and Dartmouth.
Every new restaurant added to the royalty pool means more revenue for the fund.
Is the TSX dividend stock a good buy?
I think SIR Royalty Income Fund is a compelling option for Canadian income investors hunting for yield without taking on excessive risk.
The royalty model is simple and relatively durable. SIR Corp. has an effective 16.82% interest in the fund, which aligns management’s incentives with unitholders.
The payout ratio in Q1 came in at 111.7%, meaning the fund distributed slightly more cash than it generated in distributable cash for the quarter.
However, the fund’s cumulative payout ratio since inception in 2004, including that elevated quarter, is 100.2%, in line with management’s stated long-term target of 100%.
At an 8% yield with monthly payments, a growing restaurant empire behind it, and a management team that has run this structure for over 20 years, SRV.UN deserves a spot on the watchlist of most Canadian income investors.
