For Monthly Income: A 6.1% Dividend Stock to Consider

This TSX dividend stock stands out for its attractive yield, solid distribution history, and ability to sustain its monthly payouts.

Key Points
  • SmartCentres REIT offers a 6.1% dividend yield with monthly distributions supported by stable cash flows, high-quality properties, and strong tenants.
  • High occupancy, rising renewal rents, strong leasing activity, and near-perfect rent collections continue to support earnings and dividend sustainability.
  • At the current payout rate, owning about 650 SmartCentres REIT units could generate approximately $100 in monthly dividend income.

Monthly dividend stocks are popular among investors because they provide a steady stream of cash more frequently. However, dividend payment frequency alone shouldn’t determine your investment decision.

The best dividend stocks offer attractive yields backed by solid fundamentals. In addition, these TSX stocks have a proven track record of maintaining payouts through different market and economic conditions. Notably, companies with resilient business models, healthy cash flows, and a commitment to enhance shareholder value are better positioned to deliver reliable passive income over the long term.

If you’re looking for a dependable source of monthly income, this TSX dividend stock stands out. It currently offers an attractive 6.1% dividend yield, supported by the financial strength needed to sustain its monthly payouts.

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SmartCentres REIT is a top monthly income investment

SmartCentres REIT (TSX: SRU.UN) is one of the top TSX dividend stocks offering monthly payouts. The REIT has a solid record of reliable dividend payments for years. Moreover, it currently distributes $0.15 per unit, yielding 6.1%.

SmartCentres REIT’s distribution is supported by a diversified portfolio of high-quality retail and mixed-use properties in strategic locations. These well-positioned assets continue to attract strong leasing demand and maintain healthy occupancy levels, enabling the REIT to generate stable net operating income (NOI) and funds from operations (FFO), which support its monthly payouts.

In addition, SmartCentres REIT benefits from its high-quality tenant base, which helps reduce the risk of rental defaults and supports a higher collection rate.

Overall, SmartCentres’ compelling yield, monthly distributions, and a portfolio backed by resilient assets and high-quality tenants make it an attractive investment to generate solid income.

Leasing momentum and higher rents point to continued growth

SmartCentres REIT continues to report robust leasing activity, rising rental rates, and consistently high occupancy. These factors help the trust to generate steady NOI and FFO, supporting its payouts.

At the end of the first quarter, SmartCentres’ occupancy stood at 97.6%. Leasing activity was another highlight. SmartCentres has already completed roughly 80% of its 2026 lease renewals, adding visibility into rental revenue for the rest of the year. More importantly, those renewals are being signed at meaningfully higher rental rates. Excluding anchor tenants, renewal rents increased 11.5%, demonstrating the REIT’s pricing power and demand for its well-located, high-quality space.

Tenant retention remained strong, helping preserve occupancy, while rent collections remained close to 99%, reflecting the financial health of the tenant base and the portfolio’s resilience.

Taken together, these operating metrics suggest that SmartCentres is benefiting from a favourable leasing environment. High occupancy, double-digit renewal spreads, and strong rent collections should continue supporting earnings growth and provide a solid foundation for continued dividend payments.

Investors can earn $100 in monthly income

SmartCentres REIT is a reliable monthly income stock. The resilience of its retail portfolio, focus on mixed-use development, solid leasing demand, higher rent, and significant underutilized land bank positions the REIT to deliver higher FFO, which will support its dividend payments.

Based on the SmartCentres’ current distribution rate, buying and holding 650 SmartCentres REIT units could generate around $100 in monthly income.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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