Generating reliable passive income doesn’t have to mean waiting every three months for a dividend cheque. Monthly dividend stocks can provide a steadier stream of cash, making them especially appealing for anyone looking to reinvest dividends more frequently or cover expenses.
That said, a monthly payout alone isn’t enough to make a stock worth buying. The best monthly dividend stocks are backed by businesses with strong fundamentals, healthy cash flows, and a proven ability to maintain their distributions regardless of economic conditions.
That’s why investors should consider TSX stocks with resilient business models and a focus on rewarding shareholders. These qualities can help support consistent income for years.
If you’re searching for a dependable source of passive income, this TSX stock offers an attractive 6.2% yield, pays shareholders every month, and has the financial strength to support its regular distributions.
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SmartCentres REIT offers a 6.2% yield and monthly cash
Investors looking for reliable monthly cash could consider SmartCentres REIT (TSX:SRU.UN). The real estate investment trust’s dependable payouts, attractive yield, and monthly distributions make it a top option to generate passive income.
SmartCentres has been consistently paying monthly dividends for years. Its distribution is supported through a diversified portfolio of high-quality retail and mixed-use properties strategically located in areas with solid demand. Its properties continue to attract strong leasing demand and maintain healthy occupancy rates, helping SmartCentres generate stable net operating income (NOI) and funds from operations (FFO) to cover its payouts easily.
In addition, its high-quality tenants reduce the risk of rental defaults and support consistently high rent collection.
SmartCentres REIT currently distributes $0.15 per unit per month, yielding 6.2% at its closing price of $29.95.
Solid leasing activity and rising rents support future payouts
SmartCentres REIT is well-positioned to maintain its future distributions, thanks to robust leasing activity, rising rental rates, and consistently high occupancy. Together, these strengths are driving SmartCentres’s NOI and FFO, in turn, its payouts.
The REIT’s operating performance remained impressive in the first quarter. Occupancy stood at 97.6% at quarter-end, reflecting the continued demand for its high-quality retail properties.
Leasing activity is a key strength. SmartCentres has already completed roughly 80% of its 2026 lease renewals, giving investors greater visibility into rental revenue for the remainder of the year. Even more encouraging, those leases are being renewed at substantially higher rates. Excluding anchor tenants, renewal rents increased 11.5%, highlighting the REIT’s strong pricing power and the appeal of its well-located properties.
Tenant retention also remained healthy, helping keep occupancy levels high, while rent collections stayed close to 99%, reflecting both the financial strength of its tenants and the resilience of its portfolio.
Overall, these operating metrics point to a favourable leasing environment. High occupancy, double-digit rental spreads, and near-perfect rent collections should continue supporting earnings growth, strengthening SmartCentres REIT’s ability to deliver stable and sustainable distributions over the long term.
Earn $154 in monthly cash
SmartCentres REIT continues to benefit from its resilient retail portfolio, robust leasing momentum, and growing rental income. In addition, its extensive land holdings and well-established mixed-use development pipeline provide meaningful long-term growth opportunities, supporting higher FFO and enhancing the sustainability of future distributions.
At its current monthly distribution of $0.154 per unit, buying 1,000 SmartCentres REIT units would generate $154 in monthly passive income.
