High-yield dividend stocks are an attractive investment to earn passive income. However, when I’m buying a stock for the long term, say a decade, I’ll look for dividend payers backed by businesses with financial strength, resilient cash flows, and the consistent earnings growth needed to sustain their payouts over time. Moreover, I’ll consider TSX stocks with a proven track record of rewarding investors through all economic cycles.
With this background, here is an attractive Canadian dividend stock worth holding for decades. This dividend payer offers a yield of 6.4% and has a strong history of rewarding shareholders with steady monthly payouts.
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A dependable TSX stock offering a 6.4% dividend yield
Among reliable high-yield TSX stocks, SmartCentres REIT (TSX:SRU.UN) stands out for its attractive monthly distributions and resilient payout. The REIT has uninterruptedly paid dividends for years, supported by steady growth in net operating income (NOI) and funds from operations (FFO) generated by its high-quality real estate portfolio.
SmartCentres operates a diversified portfolio of retail and mixed-use properties in strategically located, high-demand markets. Strong leasing activity and healthy occupancy levels continue to support stable rental income, driving consistent NOI and FFO growth to cover its monthly distributions.
The REIT also benefits from its high-quality tenants, including large retailers, which lowers the risk of rental defaults and contributes to consistently strong rent collections.
SmartCentres REIT currently pays $0.15 per unit each month, which translates to an annualized yield of 6.4%.
SmartCentres REIT’s distributions appear well supported
SmartCentres REIT appears well-positioned to maintain its distributions over the long term, supported by strong operating fundamentals and a favourable leasing environment. Healthy demand for its retail properties continues to drive high occupancy, strong leasing activity, and meaningful rental rate growth. These factors should support continued growth in NOI and FFO, supporting its payouts.
The REIT delivered solid first-quarter performance, and its operating momentum is likely to extend through 2026 and beyond. Portfolio occupancy stood at 97.6% at the end of the first quarter, reflecting the sustained demand for its high-quality retail assets. Given the strength of the leasing market and attractiveness of its locations, occupancy is expected to remain elevated.
Leasing remains one of SmartCentres’ biggest strengths. The REIT has already completed approximately 80% of its 2026 lease renewals, providing strong visibility into future rental income. More importantly, these renewals are being signed at significantly higher rental rates.
Tenant retention also remained strong. At the same time, rent collections remained close to 99%, indicating that tenants are financially healthy and highlighting the resilience of the REIT’s income stream.
Taken together, these metrics suggest that SmartCentres is operating from a position of strength. High occupancy, robust rental spreads, strong tenant retention, and near-perfect rent collections provide a solid foundation for continued growth in NOI and FFO. As a result, the REIT should remain well-positioned to sustain its distributions over the long term.
Beyond its existing portfolio, SmartCentres’ extensive land holdings and large mixed-use development pipeline provide opportunities to unlock additional value over time. As these developments are completed and begin contributing to earnings, they should further strengthen FFO growth and enhance the long-term sustainability of the REIT’s distributions.
