Several real estate investment trusts (REITs) have underperformed the broader markets in recent years due to rising debt levels and elevated interest rates. However, the ongoing pullback allows you to buy the dip and benefit from an attractive dividend yield.
One such Canadian REIT is GO Residential (TSX: GO.U), which is down over 30% from its all-time high. Today, the beaten-down REIT also offers you a yield of almost 7% and a monthly dividend payout.
GO Residential Real Estate Investment Trust is a landlord in one of North America’s tightest rental markets. It sends cash to unitholders monthly rather than quarterly, and its yield is around 6.8%.
For anyone building a portfolio that needs to generate real income, that combination is rare.
Source: Getty Images
Is this Canadian dividend stock a good buy?
GO Residential owns and operates luxury high-rise apartment towers in Manhattan, New York. In the first quarter of 2026, the REIT topped its initial public offering projections on every key operating metric for the third quarter running.
Committed occupancy sat at 99%, average monthly rent reached US$6,876 per suite, and the trust renewed 71% of leases that expired during the quarter. That renewal rate matters as it keeps turnover costs down, which flows straight to the bottom line.
- Manhattan median rents crossed $5,000 a month for the first time on record in February 2026.
- Listings hit a roughly four-year low by the end of the quarter, marking 19 straight months of falling inventory.
- Vacancy remained under 2% throughout the quarter.
When supply is that tight and demand keeps climbing, landlords hold the pricing power, and GO Residential has been using it.
A focus on acquisitions
Recently, GO Residential announced four acquisitions expected to roughly double its building count. Two of those deals have already closed.
On May 28 and June 5 of 2026, the REIT completed the purchases of 7 Dey Street in Tribeca and Ivy Tower near Times Square. Together, those buildings added hundreds of suites, pushing the trust’s total residential suite count to 2,545, a 26% jump from the 2,015 suites it reported as of March 31, 2026.
Both deals were funded with a mix of cash on hand and new fixed-rate mortgage debt, and management says the transactions are expected to be immediately accretive to per-unit cash flow. Notably, Ivy Tower became the first property added to the REIT’s unencumbered asset pool, meaning it carries no mortgage.
Chief Executive Officer Joshua Gotlib said the transactions were executed while maintaining a conservative balance sheet, and Chairman Meyer Orbach added that the deals demonstrate the REIT’s ability to source and close accretive growth.
GO Residential is a Canadian dividend stock that checks many boxes for income investors.
It operates in a market with genuine supply constraints and has beaten its own forecasts for three consecutive quarters, and it pays out monthly rather than quarterly, which is meaningful for anyone living off dividend income. The trust targets a payout of about 65% of estimated annual adjusted funds from operations, and its payout ratio stood at 62.8% in Q1.
That cushion suggests the monthly distribution can be sustained and potentially grown as the newly acquired buildings begin contributing a full quarter of cash flow.
The Foolish takeaway
The REIT still carries meaningful debt, and its growth story largely depends on continued strength in the New York rental market, which could soften if the broader economy stumbles. Leverage also ticked up temporarily around the acquisitions, though management expects it to normalize this quarter.
Even so, I like GO Residential here. A REIT paying close to 6.8% monthly, backed by nearly full occupancy and a market with vacancy under 2%, is the kind of income name that deserves a spot on your watch list.
For Canadian investors hunting for reliable monthly cash flow, this is one worth researching further.
