This TFSA Stock Pays a 6.1% Monthly Dividend – and It’s Worth A Look This Month

If you buy and hold this TSX stock in a TFSA, you could collect approximately $154 in tax-free passive income every month.

Key Points
  • The TSX stock offers a 6.1% dividend yield with monthly distributions, making it an attractive TFSA income investment.
  • High occupancy, strong leasing demand, and rising rental rates are supporting stable cash flow and the sustainability of its payouts.
  • The REIT’s development pipeline and underutilized land portfolio could drive future growth.

Investors seeking reliable monthly income should consider top dividend stocks with attractive yields and sustainable payouts. Further, holding these stocks in a Tax-Free Savings Account (TFSA) makes the strategy even more appealing, as all dividend income can grow and be withdrawn tax-free.

With this backdrop, here is a dividend stock that’s worth a look this month. It has a solid payout history, offers a compelling 6.1% yield, and distributes cash every month.

the word REIT is an acronym for real estate investment trust

Source: Getty Images

SmartCentres REIT to supercharge your TFSA’s passive income

If you’re looking to generate a reliable monthly income inside your TFSA, SmartCentres REIT (TSX: SRU.UN) is worth a look this month. The real estate investment trust currently distributes $0.15 per unit every month, yielding more than 6.1%.

SmartCentres’ distributions are supported by its portfolio of high-quality retail and mixed-use properties located in some of Canada’s high-traffic markets. These well-positioned assets continue to drive leasing activity, maintain high occupancy levels, and generate consistent net operating income (NOI), providing a solid foundation for its monthly payouts.

The REIT also benefits from its high-quality tenant base. Its tenants include established, financially sound retailers with resilient business models. This helps reduce rent-collection risk while supporting stable, predictable cash flow amid changing economic conditions.

SmartCentres REIT’s attractive yield with reliable payouts makes it a top stock to buy and hold in a TFSA.

SmartCentres reports strong leasing momentum and pricing power

SmartCentres delivered another quarter of resilient operating performance driven by robust leasing demand, rising rental rates, and consistently high occupancy across its retail portfolio.

As of March 31, 2026, in-place and committed occupancy stood at 97.6%, reflecting the continued strength and attractiveness of its retail assets. That stability helped drive a 1.4% year-over-year increase in same-property net operating income (NOI). The underlying performance appears even stronger when excluding anchor tenants. On that basis, same-property NOI rose 3.4%.

SmartCentres’ leasing performance was strong. The REIT has already completed approximately 80% of its 2026 lease renewals, providing investors with strong visibility into rental revenue for the remainder of the year. More importantly, lease renewals were completed at significantly higher rental rates. Excluding anchor tenants, renewal rents increased 11.5%, highlighting the REIT’s ability to capitalize on strong tenant demand and limited availability of quality retail space.

Tenant retention stayed high during the quarter, supporting renewals and occupancy levels. Additionally, rent collections remained close to 99%.

With high occupancy, strong leasing momentum, and meaningful rental growth, SmartCentres appears well-positioned to drive earnings and sustain its distributions in the years ahead.

Earn $154 in tax-free income each month

SmartCentres REIT is likely to deliver steady growth led by ongoing strength in its retail portfolio and solid operating performance. At the same time, SmartCentres is actively optimizing its portfolio and advancing a sizable development pipeline, initiatives that could boost funds from operations (FFO), increase net asset value, and support future distributions.

Further, its extensive underutilized land bank augurs well for future growth. Moreover, as the REIT transforms more of its properties into higher-value mixed-use developments, it will likely deliver solid cash flow and return significant cash to its shareholders.

So if you invest in 1,000 shares of SmartCentres REIT inside a TFSA, you could collect approximately $154 in tax-free passive income every month, based on the current distribution.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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