A 4% Dividend Stock That Can Pay Monthly Cash to Retirees (and Hopefuls!)

This fundamentally strong dividend stock offers a compelling yield of 4% and monthly payouts. It will likely sustain its distributions.

Key Points
  • This REIT offers monthly distributions and an annualized dividend yield of over 4%, making it appealing to income-focused retirees.
  • Strong operating results support its income potential, with second-quarter 2026 net operating income up 10% year over year and funds from operations rising to $1.56 per unit.
  • High occupancy of 98%, rising rental rates, and strategic acquisitions support future earnings and distribution sustainability.

Retirees and income-focused investors seeking monthly cash could consider dividend-paying stocks. TSX stocks that distribute dividends monthly can help retirees manage recurring living costs and maintain a more predictable income stream. Moreover, stocks with attractive yields are worth exploring.

However, dividend payments are never guaranteed. Companies can reduce or suspend distributions when financial conditions worsen, as Telus (TSX: T) and goeasy (TSX: GSY) have shown. Telus reduced its dividend amid financial pressures, while goeasy suspended its dividend payments.

So, beyond dividend frequency and yields, look for fundamentally strong businesses with consistent earnings growth and sustainable payouts. These companies are better positioned to maintain distributions over time, making them a more reliable income source for retirees and income investors.

For retirees and investors seeking monthly cash, here is a TSX stock offering a dividend yield of around 4%.

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This TSX stock offers monthly payouts and a 4% yield

Retirees seeking monthly cash could consider Granite REIT (TSX: GRT.UN). The REIT’s compelling yield and solid track record of maintaining and increasing its distributions make it an attractive income stock.

Granite REIT owns and manages a diversified portfolio of industrial properties, including warehouses, logistics facilities, distribution centres, and manufacturing spaces across North America and Europe. Its exposure to industries such as e-commerce, supply chain management, and industrial production positions the trust to benefit from ongoing demand for modern industrial real estate.

High occupancy, tenant retention, and favourable lease renewals continue to support its rental revenue. In addition, its ability to secure higher rents on new and renewed leases supports growth. These factors strengthen the trust’s capacity to sustain distributions and increase them over time.

Granite REIT pays a monthly distribution of $0.30 per unit, or $3.60 annually. Based on the October 20 closing price of $85.59, this translates into an annualized yield of over 4%.

Overall, Granite REIT remains an attractive option for retirees and income investors.

Granite REIT’s operational performance remains strong

Despite macro and geopolitical challenges, Granite REIT maintained strong operating performance in the second quarter of 2026, supported by rental growth, high occupancy, and portfolio expansion. Net operating income (NOI) rose 10% year over year to $135.4 million, reflecting positive leasing activity across Canada and the U.S., contractual rent escalations, and inflation-linked rental increases.

In addition, the REIT’s newly acquired properties contributed to earnings growth and highlighted its ability to supplement organic growth through strategic portfolio expansion.

Improved operating performance translated into higher funds from operations (FFO), which rose to $95.2 million, or $1.56 per unit, from $85.4 million, or $1.39 per unit, in the same period last year.

Granite’s leasing fundamentals also remained favourable. Portfolio occupancy reached 98%, increasing by 50 basis points from the previous quarter and 220 basis points year over year. This improvement indicates effective leasing execution and sustained demand for the REIT’s properties. Furthermore, average rental rate spreads of 7% on leases signed during the quarter suggest Granite continues to secure higher rents as existing agreements expire, providing incremental revenue growth.

Overall, Granite’s high occupancy supports recurring rental income, while positive leasing spreads and contractual escalations provide additional opportunities for same-property NOI growth. Acquisitions further enhance earnings expansion potential. Current operating trends provide a favourable foundation for sustainable distributions in the coming quarters.

The bottom line

Granite REIT stands out as a compelling option for retirees seeking monthly cash. Its yield of over 4% is supported by strong occupancy, rising rental rates, and growing funds from operations. Its diversified industrial property portfolio, strategic acquisitions, and non-core asset dispositions provide a solid foundation for earnings growth and dividend distributions.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy.

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