If you want to make investing feel much more rewarding, you may want to try building reliable monthly income inside your Tax-Free Savings Account (TFSA). This way, instead of waiting several months for a dividend, you can expect to receive cash every month and decide whether to spend it or reinvest it. That regular schedule could also make long-term compounding easier to follow.
Still, a high yield alone should never be the only reason to buy a stock. The underlying business must generate dependable cash flow and show that its assets or operations remain in demand. SmartCentres Real Estate Investment Trust (TSX: SRU.UN) could be a good example as it maintains that balance through a large Canadian property portfolio and monthly distributions.
Let me give you more reasons why this monthly dividend stock could be a compelling TFSA choice for investors seeking reliable income.
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A monthly income stock for your TFSA
Headquartered in Vaughan, this real estate investment trust (REIT) owns, leases, and manages shopping centres, offices, rental residences, industrial properties, and self-storage facilities across Canada. Its portfolio includes nearly 200 properties, with value-oriented retail forming a major part of the business.
After gaining 17% over the last year, SmartCentres stock currently trades at $30.06 per share with a market capitalization of about $4.3 billion. Strong leasing demand, high occupancy, and improving operating results have supported its recent performance.
At the current market price, the stock also offers a 6.2% annualized dividend yield, with distributions paid monthly. That mix of recent stock price gains and recurring dividend income makes SmartCentres an appealing TFSA stock.
Strong leasing supports the monthly income
In the first quarter of 2026, SmartCentres’ net operating income rose 0.7% year-over-year (YoY) to $137.7 million. This increase mainly came from higher base rent supported by lease-up and renewal activity across its retail portfolio. However, a higher expected credit loss provision limited the overall improvement.
The REIT’s same properties net operating income for the quarter also climbed 1.4% YoY, while the gain excluding anchor tenants was stronger at 3.4%.
Adding to the optimism, SmartCentres extended roughly 80% of leases maturing in 2026. These extensions generated average rent growth of 11.5% excluding anchor tenants and 5.8% including them. The trust also leased around 56,000 square feet of vacant space during the quarter and signed leases for about 52,000 square feet of new retail space.
Its in-place and committed occupancy rate stood at 97.6% at the end of March and had improved further by May 2026. This high occupancy, combined with strong renewal activity, could continue to support dependable rental cash flow and monthly distributions.
More growth beyond existing retail properties
Beyond its current rental income, SmartCentres is building a wider pipeline of projects that could support future growth.
The trust is expanding its retail development program in markets such as Kingston, Lindsay, and Winnipeg. It acquired an 18.8-acre land parcel in Kingston for about $7.1 million and expects construction to begin in Kingston and Winnipeg later in 2026. Similarly, construction of a 200,000-square-foot Canadian Tire building on Laird Drive in Toronto is also progressing on schedule, with possession expected in the third quarter of 2026.
At the same time, its ArtWalk condo Tower A project is continuing to advance, with about 93% of the 340 units pre-sold. These developments could add new income streams over time.
Combined with solid occupancy, strong rent growth, and a dividend yield of over 6%, SmartCentres could remain an appealing TFSA stock for investors seeking regular monthly income and long-term upside.
