Canada’s monthly dividend stocks help smooth out cash flows and may support long-term wealth creation through more frequent dividend compounding. It pays to buy and hold the best payers when building a reliable stream of passive income. Following its recent second-quarter (Q2 2026) earnings release, CT Real Estate Investment Trust (TSX: CRT.UN) stands out as a compelling monthly dividend stock to buy and hold for monthly passive income.
The combination of a respectable yield, regular monthly income distributions that have grown each year for 13 years, industry-leading portfolio occupancy, solid balance sheet and cash flow metrics, and a significantly low payout rate makes CT REIT a 5.6% dividend stock worth considering for monthly income today.
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CT REIT’s solid foundations for reliable monthly income distributions
Originally an offshoot from Canadian Tire Corporation’s (TSX: CTC.A) real estate portfolio, CT REIT has expanded impressively over time. It has grown its inherited portfolio from 256 properties comprising 19 million square feet of gross leasable area (GLA) in 2013 to 380 properties comprising 32 million square feet of GLA today. The top Canadian REIT is growing steadily every year, supported by its tight partnership with Canadian Tire, a century-old convenience store operator that remains a major tenant, strategic financier, and majority shareholder. This robust backing gives it a substantial advantage over many other Canada monthly dividend stocks.
One of the key portfolio metrics income investors look at when deciding whether to buy into a Canadian REIT for reliable passive income distributions is how well occupied its properties are. CT REIT’s portfolio remains fully occupied, boasting an impressive 99.5% occupancy rate going into the third quarter of 2026, alongside a fairly long weighted average lease term (WALT) of 6.9 years. Consequently, the portfolio can sustain steady annual rental revenue for seven years into the future.
Most noteworthy, its major tenant, Canadian Tire, which occupies 92% of GLA, remains fully committed to the REIT. It recently renewed several long-term leases at average spreads of 10.8% over expiring rents during the first six months of 2026. Contractual rent escalations like these serve as a steady source of ongoing rental income and cash flow growth.
A Canadian monthly dividend stock with strong earnings
Financial results continue to reflect CT REIT’s operational strength. Portfolio revenue grew 4.6% year over year during the second quarter of 2026, while net operating income increased by 4.8%. Additionally, the net asset value of trust units has grown 7.6% during the past year to $19.06.
CT REIT’s tight partnership with its main tenant continues to unlock lucrative investment opportunities as long as Canadian Tire expands its footprint across the country. During the second quarter, the REIT invested $76 million in projects completed during the quarter. Its $300 million credit facility with Canadian Tire is drawn by $113 million, showing that Canadian Tire is still strategically financing CT REIT’s ongoing portfolio expansion.
Buy for relatively safe monthly income
Safety and sustainability are paramount among the top Canadian monthly dividend stocks. After 13 consecutive years of raising distributions, CT REIT’s monthly payout remains one of the safest in the Canadian REIT space. With an adjusted funds from operations (AFFO) payout rate of 72.5% for the first six months of 2026, the monthly distribution consumes less than three quarters of the trust’s recurring distributable cash flow. This leaves ample liquidity to organically fund new property developments without over-borrowing.
Speaking of borrowings, CT REIT maintains a fortress balance sheet with a debt ratio as low as 38.9% as of June 30, 2026, and the trust continues to hold an investment-grade credit rating.
Investors shopping for high-quality Canadian monthly dividend stocks may buy CT REIT units today to lock in a generous 5.6% yield at a 7.2% discount to its most recent NAV of $19.06.
