While investing your hard-earned savings in quarterly dividend stocks can work perfectly well, I’ll admit I prefer seeing cash show up in my account every month. I feel better when the cash comes in more frequently because it gives me greater flexibility over what to do with it. And if I don’t need the money, I can simply reinvest it and start putting that cash back to work.
That said, I’d still never buy a stock solely because it pays monthly. Instead, I would definitely want to know what’s actually producing those distributions. In this article, I’ll highlight a fundamentally solid monthly dividend stock with an over 6% yield you can consider for passive income.
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SmartCentres stock
The top-tier monthly payer I’d consider today is SmartCentres Real Estate Investment Trust (TSX: SRU.UN), which currently puts a juicy 6.8% annualized yield in investors’ pockets.
Headquartered in Vaughan, this real estate investment trust (REIT) owns and manages shopping centres, offices, rental residences, and industrial properties.
Its portfolio includes 201 properties and roughly 35.5 million square feet of income-producing space. After rising 7% so far in 2026, SmartCentres stock now trades at $27.52 per share with a market cap of $4 billion.
What makes this monthly dividend stock attractive
The first key factor that makes this monthly dividend stock attractive to me is the REIT’s strengthening operating performance. In the second quarter, its in-place and committed occupancy rate improved sequentially to 98.1% from 97.6%. SmartCentres also leased about 247,000 square feet of vacant space during the quarter.
More importantly, the company continues to capture higher rents. Last quarter, SmartCentres extended 86% of existing leases maturing in 2026, with rent growth of 12% excluding anchor tenants and 6.6% including them. That leasing momentum helped its same-property net operating income inch up 2.6% year-over-year (YoY), or 4.4% excluding anchors.
Still, its total net operating income slipped 1% YoY to $139.9 million. The decline mainly reflected fewer townhome closings, although higher net rental income from lease-up and renewal activity helped offset some of that pressure.
Stable financial base
Another reason why I like SmartCentres is that its financial foundation gives the REIT flexibility to keep rewarding investors while pursuing future growth. In the June quarter, the REIT’s funds from operations came in at $0.58 per diluted unit, unchanged from a year ago. At the same time, its adjusted funds from operations (AFFO) were $0.52 per diluted unit, while the firm’s AFFO payout ratio stood at 86.7%.
Beyond its current portfolio, SmartCentres has several projects that could support its longer-term growth. Currently, it’s focused on the construction of a 200,000-square-foot Canadian Tire flagship store in Toronto, with delivery to the tenant expected in the fourth quarter of 2026. Recently, the REIT also acquired a 17-acre site in Winnipeg that will be anchored by Walmart under a 20-year lease.
Meanwhile, the company’s self-storage business is expanding as well. During the second quarter, it partially opened two facilities in Quebec, while additional locations in British Columbia and Alberta are under construction.
Clearly, SmartCentres’ appeal goes beyond its monthly payout. High occupancy, solid rent growth, and a large development pipeline could help strengthen cash flow over time, making it an attractive choice for income investors.
