Investors seeking a steady stream of monthly income could consider Canadian stocks that pay monthly distributions and offer attractive yields. Regular dividend payments can provide a consistent cash flow, which investors can reinvest to compound returns or use to cover ongoing expenses.
However, a high dividend yield and monthly payment schedule alone shouldn’t determine whether a stock is a good investment. Dividend sustainability is far more important. Investors should consider companies with solid fundamentals, strong balance sheets, dependable cash flows, and a proven track record of maintaining their distributions.
With these factors in mind, let’s take a look at a Canadian stock currently offering a yield of about 7% and worth considering for monthly income.
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A top monthly income stock
Among the top Canadian stocks that offer monthly payouts, SmartCentres REIT (TSX: SRU.UN) is worth considering. The REIT offers an attractive yield and has a track record of maintaining its distributions even during challenging economic periods.
The REIT’s diversified portfolio of retail and mixed-use properties, along with high occupancy, drives its net operating income (NOI) and funds from operations (FFO), supporting its monthly distributions.
Notably, SmartCentres’ properties are strategically located in high-demand areas that attract plenty of foot traffic. This helps support occupancy and allows the REIT to increase rents when leases come up for renewal. In addition, its high-quality tenant base provides a steady stream of rental income and drives collection, adding stability amid economic slowdowns.
SmartCentres currently pays $0.15 per unit each month, yielding 7%. For those seeking a high-yield investment with regular monthly income, SmartCentres REIT could be a compelling option.
SmartCentres REIT’s strong outlook supports monthly payouts
SmartCentres REIT appears well positioned for continued growth, which should drive distributions over the long term. The REIT maintained a strong occupancy rate of more than 98% in the second quarter. At the same time, increased customer traffic across its properties should benefit tenants by supporting higher sales. Stronger tenant performance can translate into higher rental rates at lease renewals and support continued growth in same-property NOI.
The benefits of stronger property performance can extend well beyond the near term, positively impacting the broader portfolio. The REIT’s leasing activity also demonstrates the resilience of its assets. SmartCentres renewed approximately 86% of leases scheduled to expire in 2026, achieving rent increases of 12% excluding anchor tenants and 6.6% including them. Cash collection also remained robust, reaching 99% during the quarter.
Going forward, SmartCentres will continue to benefit from consistently high occupancy and stable demand across its retail portfolio. In addition, its mixed-use development projects provide an additional avenue for growth.
The Trust is continuing to strengthen its core retail assets by bringing in high-quality tenants, optimizing its tenant mix, and adding new stores to existing properties. These initiatives will drive cash flows and payouts. SmartCentres also has a large, underutilized land base that offers significant growth opportunities.
The REIT has also taken measures to limit its exposure to potential increases in borrowing costs. About 88% of its debt is fixed-rate, providing protection against rising interest rates.
Overall, SmartCentres is in a solid position to keep rewarding its shareholders with steady monthly payouts.
The bottom line
SmartCentres REIT is an attractive option for investors looking for high yield and dependable monthly income. Its 7% yield is supported by strong occupancy, robust rent growth, high cash collection, and a largely fixed-rate debt structure. Moreover, its diversified development pipeline provides an additional avenue for long-term growth. Overall, the REIT’s solid fundamentals and resilient cash flows make it a compelling monthly-income stock.
