Canadian investors looking to boost the income potential of their Tax-Free Savings Account (TFSA) this July could consider top dividend stocks with attractive yields. While the TSX has several reliable dividend giants such as Fortis and Enbridge, which are known for their solid dividend growth history, here I’ll focus on a TSX stock that stands out for its ability to deliver cash every month and a compelling yield.
Monthly dividend stocks are an attractive investment for TFSA investors. They provide a steady stream of tax-free income that can help cover recurring expenses or be reinvested to accelerate long-term wealth creation through compounding.
Against this backdrop, here is a TSX stock with a solid record of consistent dividend payments. It offers a high yield of 6.1% and has solid fundamentals to support future payouts.
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An ideal TFSA stock for July
SmartCentres REIT (TSX:SRU.UN) is an ideal dividend stock to add to your TFSA in July for monthly income. The REIT has a strong record of delivering consistent monthly distributions through various economic cycles.
SmartCentres’ reliable payouts are supported by a portfolio of about 200 strategically located properties that continue to attract solid leasing demand and maintain healthy occupancy levels. These high-quality assets generate stable net operating income (NOI) and funds from operations (FFO), providing a solid foundation for its monthly distributions.
The REIT also benefits from its high-quality tenant base, which helps minimize the risk of rental defaults while supporting strong rent collection and predictable cash flows.
Backed by resilient real estate assets, dependable cash generation, and a reliable tenant mix, SmartCentres REIT offers an appealing combination of income and stability. The REIT currently distributes $0.15 per unit each month, yielding 6.1%.
SmartCentres REIT is well-positioned to generate worry-free monthly income
SmartCentres REIT has consistently paid monthly distributions for years, and its strong operating performance suggests those payouts remain well supported. The REIT continues to benefit from robust leasing demand, rising rental rates, and consistently high occupancy, enabling it to generate stable NOI and FFO, which drives its payouts.
At the end of the first quarter of 2026, SmartCentres reported an impressive occupancy rate of 97.6%. Leasing momentum also remained strong. The REIT has already completed approximately 80% of its 2026 lease renewals. Moreover, the renewals are being signed at significantly higher rental rates. Excluding anchor tenants, renewal rents increased 11.5%, highlighting the REIT’s pricing power and continued demand for its well-located properties.
While tenant retention remained healthy, rent collections were close to 99%, reflecting both the financial strength of the tenant base and the resilience of SmartCentres’ portfolio.
These operating trends position the REIT for continued earnings growth. Looking beyond its existing portfolio, SmartCentres also has a significant long-term growth runway. Its large pipeline of mixed-use developments and extensive underutilized land bank provide opportunities to expand earnings over time. As these projects are completed and begin contributing to cash flow, they should further strengthen FFO and drive the REIT’s monthly payouts.
Investing the full 2026 TFSA contribution limit of $7,000 in SmartCentres REIT in July, investors can generate $35.60 in monthly income.
