If you are building an income portfolio, getting paid every month can be very appealing. But the problem is that monthly dividends could make even a weak investment look better than it really is. That’s why investors need to make sure that the business they are investing in can keep producing enough cash to support those payments over time. That is especially important in a market where investors are still dealing with macroeconomic uncertainty and geopolitical tensions.
In this article, I’ll highlight one monthly-paying TSX stock that could be worth a closer look for investors who want income, stability, and long-term upside.
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Why CAPREIT deserves a closer look
For investors seeking dependable monthly income, Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR.UN), or CAPREIT, offers a great mix of an attractive yield, a large rental portfolio, and recurring cash flow.
The real estate investment trust (REIT) owns and manages roughly 45,500 apartment suites and townhomes, mainly across Canada with a smaller presence in the Netherlands. Its units recently traded at $31.55 each with a market cap of about $4.8 billion. At that price, it offers a 4.9% annualized dividend yield and pays distributions every month.
CAPREIT stock has fallen about 22% over the last year as it has been navigating softer conditions in parts of the Canadian rental market, slower rent growth, slightly lower occupancy, and higher interest costs. On the brighter side, its lower share price makes its monthly income stream more appealing for investors buying today.
Its financials remain resilient, despite short-term challenges
A monthly dividend becomes much more appealing when the business behind it continues to produce enough recurring cash flow to support those payments. And CAPREIT won’t disappoint you on that front.
In the second quarter of 2026, CAPREIT generated about $246 million in operating revenue, down roughly 3% year-over-year (YoY), with property dispositions reducing the income contribution from the overall portfolio.
Still, its Canadian same-property portfolio held up better as its net operating income rose 1% YoY as rental revenue growth and operating efficiencies helped drive growth. Same-property Canadian occupancy also remained strong at 97.5%, while occupied average monthly rent increased 2.3% YoY.
More importantly for dividend investors, CAPREIT’s funds from operations (FFO) payout ratio remained at a manageable 59.2%, leaving a healthy gap between its recurring FFO and dividend distributions.
Capital moves offer value
Beyond collecting rent, CAPREIT is also using portfolio sales, acquisitions, and unit repurchases to create value for unitholders.
During the first six months of 2026, the REIT repurchased about 1.6 million units. By the first week of August, CAPREIT had invested about $71 million in 2026 to repurchase roughly 2 million units at an average price of about $36 each.
That strategy becomes especially interesting when compared with CAPREIT’s reported diluted net asset value of $54.38 per unit at the end of June. Its recent market price of $31.55 sits well below that level. While a discount alone doesn’t guarantee a rebound, buying back units at lower prices could support per-unit value over time.
Why I find it to be the best monthly dividend stock
For monthly income investors, CAPREIT brings together several appealing qualities. Its 4.9% yield, monthly distributions, large residential portfolio, and latest-quarter FFO payout ratio below 60% provide a solid income foundation.
On top of that, its discounted unit price and ongoing capital allocation efforts make CAPREIT look like one of the most attractive monthly-paying TSX stocks to me.
