Unused Tax-Free Savings Account (TFSA) room could feel like a missed opportunity if it is just sitting in cash. But with the right monthly-paying dividend stocks, that contribution room can start working as a tax-free income source. For investors who want steady cash flow without giving up long-term growth potential, Canada’s real estate investment trusts (REITs) remain especially attractive because most of them distribute income every month.
In this article, I’ll highlight two top Canadian REITs that stand out for investors who want to build reliable TFSA cash flow while staying focused on quality assets.
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SmartCentres REIT stock
While the retail real estate segment may not sound super exciting at first, I still find SmartCentres Real Estate Investment Trust (TSX:SRU.UN) appealing as it has built a strong business around essential properties, high occupancy, and a growing development pipeline. The trust owns and manages shopping centres, office buildings, rental residences, self-storage assets, and industrial facilities across Canada.
After rallying by 17% in the last 12 months, SmartCentres stock now trades at $30.39 per share with a market cap of $4.4 billion. Despite these gains, it offers a juicy 6.1% dividend yield with monthly distributions.
At the end of the March 2026 quarter, the REIT registered a 97.6% occupancy rate, helped by resilient retail demand and development momentum. During the quarter, its same-property net operating income (NOI) rose 1.4% year-over-year (YoY) with the help of lease renewals and stronger self-storage occupancy. As a result, SmartCentres reported quarterly NOI of $137.7 million, and funds from operations (FFO) of $0.54 per share.
The trust also has eight active projects representing about 1.7 million square feet of gross floor area. That includes a 200,000-square-foot Toronto retail building pre-leased to Canadian Tire and self-storage projects in Montreal and Laval.
Overall, its high monthly yield, resilient occupancy, and expanding development pipeline make SmartCentres an attractive monthly dividend stock for TFSA investors looking to generate reliable tax-free income.
Granite REIT stock
Granite Real Estate Investment Trust (TSX:GRT.UN) looks just as compelling, especially for investors who prefer industrial property exposure. It mainly focuses on logistics, warehouse, and industrial properties across North America and Europe, giving it direct exposure to supply-chain demand, e-commerce, and high-quality distribution space. It currently owns 145 investment properties with about 61.5 million square feet of gross leasable area.
Following a 37% jump over the last year, Granite REIT stock trades at $97.20 per share with a market cap of about $5.9 billion. At this market price, it has a dividend yield of around 3.6%, with distributions paid monthly.
Despite macroeconomic uncertainties, Granite continues to deliver solid operating performance. In the first quarter of 2026, its NOI rose 6.8% YoY to $134.2 million, while FFO climbed to $95.8 million. This growth was largely driven by new and renewed leases, contractual rent increases, and contributions from properties acquired in 2025.
The REIT also maintained a strong 97.5% occupancy rate at the end of March, with committed occupancy improving to 98.3% in early May. During the quarter, Granite achieved average rental rate spreads of 23% on about 1.1 million square feet of lease renewals and new leases, highlighting the continued demand for its industrial properties.
Combined with its investment-grade balance sheet and unchanged 2026 guidance, these trends clearly show Granite’s position as a reliable long-term income and growth investment.
