A 5% Dividend Stock Paying $39.30 Every Month

A high-yield dividend stock can provide recurring income streams every month on a modest investment.

Key Points
  • CT REIT (TSX:CRT.UN) is a small‑capital, monthly‑income play—trading at $18.72 with a 5.08% yield; a $8,807 purchase (432 shares) would pay about $33.90/month and could grow to roughly $14,600 in five years if distributions are reinvested.
  • The REIT is low‑risk and net‑lease focused, anchored by Canadian Tire with ~380 properties, 99.4% occupancy, a 7‑year WALT and built‑in rent escalations, supporting steady cash flow and 13 years of dividend raises.
  • Q1 2026 showed property revenue +4.8%, NOI +4.7% and net income +9.5%, plus a 3% distribution increase and solid liquidity (~$6M cash + $132M credit), underscoring reliable monthly payouts for small investors.

The Toronto Stock Exchange (TSX) offers continuous opportunities for Canadians — including retirees — seeking extra income. The market doesn’t discriminate. You can invest according to your financial capacity and risk appetite. Furthermore, you can create the desired cash flow streams and choose between quarterly or monthly payouts.

If you have less than $10,000 in free capital to invest, a prime option is CT Real Estate Investment Trust (TSX: CRT.UN). CT REIT trades at $18.72 per share (+18.3% year to date) and pays a juicy 5.08% dividend. If you purchase 432 shares for $8,807.04, your money will generate $33.90 in passive income every month.

The monthly payout is recurring, although you can opt not to collect and instead reinvest dividends. If you do, your initial fund will compound to roughly $14,600 in five years without additional cash outlay. Since CRT.UN has raised dividends for 13 consecutive years, expect higher payouts yearly.

A plant grows from coins.

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Low-risk commercial real estate

The closed-end and net-lease $4.5 billion real estate investment trust (REIT) owns income-producing commercial and retail properties across Canada. Its major, controlling unit and long-time anchor tenant is Canadian Tire Corporation.

CT REIT said this strategic partnership translates to a reliable, durable, and growing business. Its national portfolio has 380 properties consisting primarily of net-lease single-tenant retail properties. Included are four industrial properties and one mixed-use commercial property. and a development property. There are 11 projects in the development pipeline.

The leases are long-term with built-in annual rent escalations (1.5%). More than two-thirds of the leased properties are situated in Canada’s large urban markets. As of the first quarter (Q1) of 2026, the weighted average lease term (WALT) is seven years. Loblaw and its subsidiaries are the top tenant outside of Canadian Tire.

CT REIT leverages its relationship with its anchor tenant to pursue third-party net-lease opportunities as part of its broader investment and organic growth strategy. Another competitive edge is the preferential right to participate in the development or right of first offer on all Canadian Tire-owned properties.

Under the triple net lease agreements, tenants pay the base rent and shoulder operating costs as well as capital expenditures. Regarding debt maturities, the weighted average term to maturity is 4.3 years. Meanwhile, free funds flow (FFO) has been growing consistently every year since 2017.

Portfolio performance

In Q1 2026, property revenue and net operating income (NOI) increased 4.8% and 4.7% year over year, respectively, to $157.6 million and $124.3 million. Net income rose 9.5% to $115.7 million compared to Q1 2025. According to its president and CEO, Kevin Salsberg, the quarterly results reflect the strength of CT REIT’s portfolio. The occupancy rate is 99.4%.   

The board of trustees also approved a distribution increase, rewarding investors with a 3% hike. Jodi M. Shpigel, CT REIT’s senior vice president, said the total renewal spread on a blended basis during the quarter is 5.9%. The $6 million cash on hand and $132 million in available line of credit at the quarter’s end provides adequate liquidity to fund ongoing investments and pursue new opportunities.

You can start small

Creating extra income through the TSX doesn’t require substantial capital. You can start the ball rolling without a massive lump sum. A modest investment in Canadian Tire, for example, will lock in recurring cash flow streams every month.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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