If you’re looking for a high-quality monthly-paying dividend stock to buy and hold for years, Granite Real Estate Investment Trust (TSX: GRT.UN) is certainly one of the best I’d consider on the TSX today.
The company currently offers an annual yield of roughly 4.2%, allowing you to collect passive income every month or reinvest those payments to keep growing your portfolio.
However, what makes Granite particularly appealing isn’t simply that it pays monthly. It’s the quality of the real estate it owns, the industry it operates in and the opportunities it has to keep expanding its business.
After all, when you’re investing for the long haul, it’s important to know that a dividend stock can continue supporting its payments and, ideally, increasing them as its business grows.
So, here’s why Granite might just be the best monthly dividend stock on the TSX.
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A high-quality real estate business built to generate income
Much of Granite’s appeal comes from the roughly 145 investment properties it owns across Canada, the United States and Europe, particularly because most are in the industrial space.
In fact, the majority of its portfolio consists of distribution and e-commerce facilities, which businesses need to store inventory and move products to their customers.
And the location of those properties matters. Warehouses close to major transportation routes and population centres help businesses keep shipping costs down and operate more efficiently.
That makes well-located industrial real estate valuable to tenants and helps Granite generate reliable rental income, particularly because its leases often extend for years.
In fact, Granite’s portfolio was roughly 98% occupied at the end of June, with an average remaining lease term of just over five years.
However, Granite also has opportunities to increase the rents it collects as leases expire and new agreements are signed. For example, recent new and renewed leases carried rental rates roughly 7% higher than the previous leases.
And that growth is already showing up in its results, with same-property net operating income increasing 8.7% year over year in the first half of 2026.
Furthermore, Granite isn’t solely dependent on higher rents to grow. It can also acquire and develop new properties, creating additional sources of income.
So, between its existing properties, opportunities to raise rents and new developments, Granite has several ways to continue growing its cash flow over the long haul.
A monthly dividend stock with room to grow
There’s no question that one of the top reasons investors consider Granite is its attractive yield and consistently growing monthly distribution. Of course, that income is only useful over the long haul if the company can afford to keep paying it.
And that’s another reason Granite is one of the best monthly dividend stocks on the TSX. Its distribution is well covered by the cash flow its properties generate, and that coverage has improved over the last several years.
In fact, its adjusted funds from operations (AFFO) payout ratio declined from roughly 77% in 2022 to 65% in 2025, even as Granite continued increasing its distribution.
That means Granite has been able to grow the income it pays investors while retaining cash to help fund expansion. Furthermore, it has increased its distribution for 15 consecutive years, giving investors a long track record of growing income.
Its valuation is also worth considering, particularly after the units have pulled back roughly 15% from their 52-week high.
In fact, right now, based on its expected AFFO for 2026, Granite trades at roughly 15.4 times forward cash flow, compared with a five-year historical median of 15.7 times.
So, although the stock isn’t trading at a massive discount, you’re also not paying a significant premium to its historical valuation for a business that’s consistently increased its distributions and still has opportunities to grow.
And while other monthly-paying stocks may offer higher starting yields, Granite continues to look like one of the best monthly dividend stocks on the TSX for its combination of reliable income, consistent distribution growth and the opportunity for its business to keep expanding over the long haul.
