Canadians seeking steady monthly income can consider exposure to recession-resistant stocks such as Chartwell Retirement Residences (TSX:CSH.UN). With a monthly payout of $0.052 per share, the company offers you a yield of 3.1% right now.
Let’s see if you should buy, sell, or hold this monthly dividend stock in August 2026.
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A record-breaking quarter for funds from operations
In the second quarter (Q2) of 2026, Chartwell grew its funds from operations (FFO) by 17% year over year. This marked the 12th consecutive quarter of double-digit FFO per unit growth. Total FFO rose 34% to $90.5 million, while FFO per unit rose by $0.04 to $0.28 per unit.
CEO Vlad Volodarski summed up the broader picture during the call. “The fundamentals supporting retirement living in Canada remain very strong. Demand continues to grow, while new supply is expected to remain limited for the foreseeable future. This creates a favorable backdrop for occupancy, NOI, and earnings growth,” he said.
Chartwell also narrowed its net loss to $1.3 million in the quarter, down from $5.7 million a year earlier, suggesting operations are moving closer to consistent profitability.
Filling suites drives a retirement residence operator’s growth, and Chartwell’s occupancy trend has been strong all year. Same-property occupancy rose 320 basis points year over year to 94.3% in the second quarter. Western Canada’s same-property net operating income (NOI) jumped 19.5%, Ontario grew 7.4%, and Quebec climbed 12.3%.
Management expects the portfolio to reach roughly 95% occupancy by September, with a further push likely in the fourth quarter, which is historically the company’s strongest leasing season.
In 2025, same-property occupancy rose 480 basis points for the full year, and NOI grew 18.4%.
The bull case for the monthly dividend stock
In the first half of 2026, Chartwell has completed or announced more than $1 billion in acquisitions.
- The largest was a new partnership with Fengate Asset Management, giving Chartwell a 30% ownership stake in the Seasons Retirement Communities portfolio, spanning 23 properties and nearly 3,000 suites, for a purchase price of $382.5 million.
- Chartwell also picked up full ownership of Palermo Village Retirement Residence in Oakville, Ontario, for $43 million and a 50% stake in a Quebec residence called Chartwell Le Montcalm.
At the same time, the company is trimming older, less efficient properties from its portfolio. It has completed $167 million in noncore asset sales this year, with agreements in place to sell two more properties for a combined $132.8 million.
Chartwell is also building for the future, announcing four new development projects in July, representing 828 suites across Alberta, British Columbia, and Quebec.
Management has flagged a longer-term opportunity to add close to 6,400 suites across the portfolio over time, largely through partnerships with developers rather than taking on construction risk directly.
None of this growth matters much to income investors if the balance sheet can’t support it.
The company ended Q2 with liquidity of $614 million, which includes $219 million in cash and $395 million of undrawn credit facility capacity.
The company’s interest coverage ratio was 3.5 times, and net debt to adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) sat at seven times.
Chartwell also raised $72.7 million during the quarter through its at-the-market equity program at an average price of $21.74 per unit, giving it another funding source for future deals without leaning too hard on debt.
Chartwell’s monthly distribution, backed by rising occupancy, growing cash flow, and a disciplined approach to acquisitions, makes it a name worth watching for Canadian income investors.
