Most Canadian dividend stocks will pay you four times a year. But let’s be honest: your bills don’t take a three-month break, and your passive income shouldn’t either. If you are looking for a reliable monthly dividend to add to your passive income portfolio, Canada’s real estate sector has established a three-decade track record of delivering. The longest standing monthly payer is RioCan Real Estate Investment Trust (TSX: REI.UN). As Canada’s oldest surviving REIT, RioCan has paid continuous monthly distributions since 1993, backed by a portfolio of 164 highly-occupied prime urban retail properties.
Today, RioCan REIT offers new investors a 5.6% annualized yield via a monthly payout of $0.10 per unit, which is supported by a safe 67.7% payout ratio and consecutive annual payout hikes since 2022. The retail REIT remains a premier cash-flow generator that keeps showing up, month after month, for income-seeking unitholders.
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A 5.6% yield with growing upside
On September 15, RioCan REIT declared its latest monthly distribution of $0.10 per unit (payable October 7, to unitholders of record on September 30). That works out to a juicy 5.6% annualized yield.
Better yet, that yield could grow even bigger down the road as management sustains a re-established distribution growth policy. RioCan hasn’t missed a single monthly payout since 1993 and has raised its distribution every year since 2022.
RioCan’s strong operations backing a growing monthly paycheque
A high dividend yield is great, but only if the business behind it can sustainably support it. Fortunately, RioCan REIT’s underlying retail properties portfolio is firing on all cylinders in 2026. Net Operating Income (NOI) growth, supported by high occupancy rates, pricing power, and a sticky tenant book makes the retail REIT one of the best sources for reliable monthly passive income.
During the second quarter, diluted net income per unit grew 6.1% year over year, driven by fair value property gains and repurchases of issued units. Beyond the fair value gains lies a thriving real estate business.
In-place occupancy rose from 97.5% to 98.1% between July 2025 and June 2026, with committed occupancy increasing to 98.8%.
RioCan renewed expiring leases at an impressive average leasing spread of 23.1% during the past quarter. Given that in-place rents still sit well below current market rates, RioCan REIT retains plenty of room to raise rents as leases roll over.
Most noteworthy, the trust maintains a tenant retention rate near 90%, Canadian businesses want to stay in its high-traffic urban centres.
Thanks to this leasing momentum, management upgraded its 2026 Same Property Net Operating Income (SP NOI) growth guidance from 3.5%–4% up to 4%–4.5% in August.
Should you buy RioCan REIT for its monthly payout?
RioCan REIT appeals as a monthly dividend stock to buy given its safe payout coverage and smart capital management.
The retail REIT’s distribution payout ratio sits at a comfortable 67.7% of its Funds From Operations (FFO) over the 12 months ending June 30, 2026, leaving a comfortable cash flow cushion.
Longtime investors will remember that RioCan cut its monthly payout by 33% in December 2020 (from $0.12 to $0.08 per unit) amid severe COVID-19 lockdown uncertainty. While tough at the time, that move was intended to save over $150 million annually. Management funneled excess cash into new developments, debt repayment, and ongoing unit buybacks – setting a safer foundation from which a reliable monthly dividend has sustainably grown since 2022.
Foolish takeaway
RioCan REIT’s payout is well-protected, yet the stock still trades at a bargain. Sitting at a trailing Price-to-FFO multiple of 12.1, RioCan units are noticeably cheaper compared to peers like Choice Properties REIT (14.0x) and CT REIT (12.3x).
If you want a juicy reliable monthly dividend that generates steady passive cash flow while offering some income upside, RioCan REIT could belong near the top of your buying list.
