Most bills show up every month, but many dividend stocks make investors wait three months for their next payout. That is one reason I like the idea of owning dependable monthly dividend stocks. They can put cash into your account more regularly while still giving you a chance to benefit from long-term growth. Of course, the payout schedule means little if the underlying business is weak.
That is why I like Choice Properties Real Estate Investment Trust (TSX: CHP.UN) for investors who want monthly income without giving up long-term growth potential. Its large real estate portfolio, high occupancy, and growing property income provide solid support for its monthly distributions.
In this article, I’ll show you why this 5%-yielding dividend stock could be worth owning for reliable monthly passive income.
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Choice Properties stock
Notably, Choice Properties is Canada’s largest real estate investment trust (REIT). It owns and manages a diversified portfolio of commercial and residential real estate across Canada. Its portfolio includes more than 700 income-producing properties with 60 million square feet of gross leasable area. These properties span the retail, industrial, mixed-use, and residential segments, with its retail portfolio largely anchored by necessity-based grocery tenants.
After gaining 8% over the last year, Choice’s stock currently trades at $15.50 per unit with a market cap of $5.1 billion. Income investors may find its payouts even more appealing as it offers a 5% annualized dividend yield and distributes cash every month. Its August distribution was set at $0.065 per unit, equivalent to $0.78 per unit yearly.
Strong operations support the monthly payout
Choice’s dividend becomes even more attractive when you consider the quality of the properties generating the cash that supports it. In the second quarter of 2026, Choice Properties’ funds from operations (FFO) rose 0.7% year-over-year (YoY) to about $193 million. Its diluted FFO climbed 0.8% YoY to $0.27 per unit. Strong same-asset net operating income growth supported FFO, although higher interest expenses partly offset the improvement.
In addition, the REIT’s cash-basis net operating income rose 2.8% YoY in the latest quarter to about $276 million. More importantly, it also achieved impressive long-term renewal leasing spreads of 19% while maintaining period-end occupancy of 97.7%.
While Choice’s quarterly net loss increased to about $176 million from $154 million a year ago, much of that loss reflected non-cash fair value adjustments rather than weakness in its underlying operations. These included the impact of the higher unit price on the fair value of its exchangeable units.
More room to grow
Reliable monthly income is attractive on its own, but Choice Properties also has several initiatives that could support growth over time. For 2026, the REIT is targeting roughly 2% to 3% YoY growth in same-asset cash-basis net operating income. Choice Properties also expects its diluted FFO per unit to be between $1.08 and $1.10.
Recently, the REIT renewed 50 Loblaw leases expiring in 2027. Those leases cover 3.6 million square feet and were renewed at a weighted average spread of 8.8% with an average five-year extension. Choice Properties also plans to keep advancing commercial developments to add high-quality properties to its portfolio.
Given these positive factors, Choice Properties offers more than an attractive payout schedule. Its 5% dividend yield, monthly distributions, high occupancy, growing property income, and continued portfolio efforts make it a really appealing stock for investors seeking recurring passive income and long-term growth potential.
