If you want to build a reliable passive income source, you may want to consider investing in monthly-paying dividend stocks on the Toronto Stock Exchange. Instead of waiting three months between distributions, these dividend stocks reward investors with a regular stream of cash that could be reinvested or spent right away.
For investors looking for such monthly payers today, Nexus Industrial REIT (TSX: NXR.UN) looks worth a closer look. This Oakville-based real estate investment trust (REIT) owns industrial properties across Canada, pays cash every month, and operates in a real estate niche that has held up well.
Let me give you some more reasons why I think this monthly-paying Canadian stock deserves a spot on your radar.
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A resilient industrial landlord with monthly dividends
If you have not followed it before, Nexus mainly focuses on warehouses and other industrial properties in primary and secondary Canadian markets. That gives it exposure to a part of the market that continues benefiting from demand tied to logistics, storage, and distribution.
Its stock currently trades at $8.14 per unit, giving the trust a market cap of about $800 million. The stock has climbed roughly 8% in the last three months and offers a monthly distribution that works out to an attractive dividend yield of about 7.8%.
Strong occupancy and strengthening leasing activity
Even as many real estate companies continue to struggle due to macroeconomic challenges, Nexus started 2026 on a solid note. In the first quarter, its net income came in at $32.2 million while net operating income (NOI) rose 5.4% year-over-year (YoY) to $33.8 million. The REIT’s occupancy stayed healthy at 95%, showing that tenant demand remains firm even after portfolio sales over the last year.
Similarly, leasing activity added more fuel to its growth story. During the quarter, Nexus completed 41,177 square feet of leasing at an average spread of 32% above expiring rents. This pricing power is exactly what I love to see from an industrial landlord.
A healthier balance sheet helps
Interestingly, the REIT has increased its focus on strengthening its financial base in recent quarters. In April, it completed an inaugural $500 million bond issuance that generated net proceeds of $498.5 million. The trust used that capital to retire a $200 million unsecured term loan and reduce borrowings on its revolving credit facility.
That move should improve flexibility. In addition, Nexus ended the first quarter with a total indebtedness ratio of 49.5% and a debt service coverage ratio of 1.7 times, leaving it in a healthy position to keep funding growth while protecting the payout.
Meanwhile, its management has also kept refining the portfolio as it sold an industrial property in Calgary for $8.5 million and now owns 88 properties with 12.3 million square feet of gross leasable area.
Growth projects add upside
Beyond the current yield, Nexus still has catalysts that could strengthen the growth in the years to come. The company expects mid-single-digit same-property NOI growth in its industrial portfolio this year, helped by lease-up activity and market-rate renewals.
At the same time, its development pipeline looks promising. A 325,000-square-foot expansion in St. Thomas is expected to add $4.9 million in annual NOI at a 9% yield, while a 115,000-square-foot Calgary project is expected to deliver an 11% yield. On top of that, its Montreal and Longueuil acquisitions added 282,721 square feet and about $2.6 million in annual NOI.
Put it all together, and it’s easy to see why Nexus looks attractive despite its high yield. It offers monthly income, improving cash flow coverage, and projects that could help its earnings and share price keep moving higher.
