This 6.6% Dividend Stock Sends You Cash Every Month

SmartCentres offers a 6.6% annualized dividend yield with monthly distributions, backed by high occupancy, strong leasing demand, and an expanding development pipeline.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published August 20, 4:00 pm EDT

If I’m buying a stock mainly for monthly income, I mainly want three things from the business behind it: dependable cash flow, reasonable support for the payout, and some room to grow.

And SmartCentres Real Estate Investment Trust (TSX: SRU.UN) offers all three today. Its over 6% annualized yield provides attractive monthly income, while high occupancy and healthy leasing activity help keep rental cash flowing through the portfolio. In recent quarters, its adjusted funds from operations (AFFO) payout ratio has also improved, which is an encouraging sign for investors relying on those dividends.

In this article, I’ll break down what supports SmartCentres REIT’s strong monthly distribution and why its growth plans make this monthly dividend stock attractive for long-term income investors.

Colored pins on calendar showing a month — Source: Getty Images

SmartCentres stock

In short, SmartCentres is a Vaughan-based real estate investment trust (REIT) that owns, leases, and manages shopping centres, office properties, rental residences, industrial facilities, condos, townhomes, and self-storage properties across Canada.

After climbing 9% so far in 2026, SmartCentres stock recently closed at $28.15 per share, giving the REIT a market cap of roughly $4 billion. Income investors get a 6.6% annualized dividend yield, with distributions arriving every month.

Strong leasing supports its dividends

SmartCentres ended the second quarter of 2026 with an in-place and committed occupancy rate of 98.1%, up 0.5% from the previous quarter. The REIT leased about 247,000 square feet of vacant space during the quarter, while extending 86% of existing leases maturing in 2026.

More importantly, its rental rates moved higher as SmartCentres reported rent growth of 12% excluding anchor tenants and 6.6% including anchors. Its same properties net operating income (NOI) also improved by 2.6% year-over-year (YoY), or 4.4% excluding anchors, helped by lease-up activity at higher rents.

Overall, its NOI came in at $139.9 million, down 1% YoY. The decline mainly reflected fewer townhome closings as the final unit in the Vaughan NW project closed during the quarter. Higher net rental income from lease-up and renewals across the commercial portfolio partly offset that weakness.

Growth beyond the monthly payout

The 6.6% yield may grab your attention first, but SmartCentres is also working on projects that could expand its property base over time. The REIT continues construction on a 200,000-square-foot Canadian Tire flagship store in Toronto, with delivery expected in the fourth quarter of 2026. It also acquired a 17-acre site in Winnipeg for about $10.1 million, where a new Walmart is expected to anchor the retail development under a 20-year lease.

Meanwhile, construction continues on its ArtWalk condo project in Vaughan, where roughly 93% of the 340 units were pre-sold. SmartCentres has also started construction on a 65-unit rental building in the same area.

Its self-storage business is also expanding. In the latest quarter, SmartCentres partially opened two new facilities in Quebec, while additional projects are under construction in British Columbia and Alberta.

Overall, SmartCentres’ solid dividend yield, monthly payouts, high occupancy, strong leasing momentum, and active development pipeline make this an appealing monthly dividend stock to consider for long-term passive income.