The catch is that dependable passive income isn’t just about chasing the highest dividend yield you can find. Some payouts disappear just as quickly as they appear. I’d rather own businesses with strong fundamentals, steady cash flow, and management teams that could keep increasing distributions even when the economy hits a rough patch.
In this article, I’ll talk about two of my favourite monthly income stocks and explain why I think they deserve a place in an income-focused portfolio.
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CT Real Estate Investment Trust stock
If steady income is the goal, CT Real Estate Investment Trust (TSX: CRT.UN) is a sensible place to start. The real estate investment trust (REIT) owns a portfolio anchored mainly by Canadian Tire properties, which gives it a durable source of rent and makes its cash flow easier to trust.
At the time of writing, CT stock traded at $18.64 per unit with a market cap of $2.1 billion. It has climbed nearly 18% over the last year and still offers an attractive dividend yield of 5.1%, paid monthly. That mix of price momentum and income is hard to ignore.
CT REIT’s latest quarter backed up that appeal as its property revenue rose 4.8% year-over-year (YoY) in the first quarter to $157.6 million, while net operating income (NOI) climbed 4.7% to $124.3 million. Similarly, the trust’s same-store NOI grew 1.2% YoY, and same-property NOI was up 2.3%. As a result, its net income reached $115.7 million, and the REIT lifted its monthly distribution 3.5% from a year ago to $0.08 per unit, or $0.98 annually.
Meanwhile, CT’s cash generation remains solid too. In the latest quarter, the REIT’s adjusted funds from operations (AFFO) rose 3.5% YoY to $78.1 million. With the AFFO payout ratio steady at 72.5%, its dividend distribution still looks well supported.
That blend of reliable rent, disciplined expansion, and regular distribution growth is what makes CT REIT an attractive monthly dividend stock to buy right now.
Dream Industrial REIT stock
The second stock that can help strengthen a monthly passive income stream is Dream Industrial Real Estate Investment Trust (TSX: DIR.UN). This REIT owns warehouses and logistics properties across Canada, Europe, and the United States, giving it exposure to key real estate markets for e-commerce and supply chains.
Following a 23% rally in the last year, its stock recently traded at $14.52 per unit with a market cap of $4.1 billion. At this market price, the REIT yields 4.9%, paid monthly.
In the March quarter, the company’s comparative properties net operating income jumped 9% YoY to $99.6 million, while net rental income rose 6.6% to $97.8 million. At the same time, occupancy stayed strong, with the wholly owned Canadian portfolio at 96.8% and the European portfolio at 95%.
Dream Industrial has also been actively reshaping the portfolio. It completed $453 million in dispositions during the quarter, closed $150 million of acquisitions since the start of 2026, and kept its development pipeline moving.
With $604.9 million of available liquidity, including $35.9 million in cash and $250 million under its accordion facility, Dream Industrial REIT still has plenty of financial flexibility, making it the top monthly income stock to buy.
