Every month, right around the 15th, a quiet piece of regular cash flow magic happens in some investors’ portfolios. Granite Real Estate Investment Trust (TSX: GRT.UN) deposits about $0.2958 per unit directly into unitholder accounts. It has done this religiously for two decades. Yet, over the past month, the Canadian stock market bid the Canadian industrial REIT’s value lower, dragging Granite REIT units down 10%. That recent pullback pushed the annualized dividend yield marginally up to a lucrative 4% annually.

Granite REIT remains a good TSX dividend stock to buy for long-term passive income in my book. When such a high-quality dividend stock takes a dip, my instinct has always been to look under the hood to check if any of its fundamental factors justifying a buy-and-hold strategy have changed. The top REIT’s portfolio metrics are rather improving, and it remains a forever buy for me.

Granite REIT maintains a strong underlying foundation

Granite REIT owns a massive $9.6 billion industrial real estate portfolio comprising 145 properties spanning 61.5 million square feet of gross leasable area (GLA) located across North America and Europe. Its second-quarter earnings report earlier in August proves its underlying leasing business remains as sturdy as ever.

In-place occupancy rose 220 basis points year over year to a solid 98% entering the third quarter, while rent spreads on new leases surged by 7% during the second quarter. Year-to-date constant currency net operating income (NOI) increased by 8.3% year over year, strongly supporting management’s updated projections for full-year same-property net operating income growth of 6.0% to 6.5%.

The real estate portfolio is generating more rental income, has welcomed new tenants to maintain strong occupancy, and continues to generate growing distributable income to support rising monthly distributions.

Why did the market punish GRT.UN stock?

So, why did Granite REIT units slide during the past month? Short-term market trades tend to fixate on temporary noise. Management explicitly warned that same-property NOI growth would be front-half weighted, meaning the second half of 2026 will see a temporary moderation before accelerating again in 2027. On top of that, fluctuating bond yields, localized weakness in the Greater Toronto Area, and a $1.3 million lease termination fee from former parent company Magna International may have added some short-term volatility. These are by no means a big deal for the vast, geographically diversified real estate portfolio.

Granite REIT a long-term buy for monthly passive income

Looking beyond the past short-term volatility reveals a Canadian industrial REIT that is executing well for growth and sustainable income distributions.

Granite is actively recycling capital; it may dispose of $66.2 million in properties held for sale during the third quarter and complete $195 million in new acquisitions early in the fourth quarter.

Given a weighted average remaining lease term (WALT) of 5.1 years, rental revenues are remarkably visible and secure for the next half-decade. Better yet, management has strengthened the balance sheet, trimming the net-debt ratio from 35% last year to 32% as of June 30.

The industrial REIT is well positioned to navigate a new Canada-US trade war from a position of strength, even though one of its major tenants, Magna International, a major motor-vehicle manufacturing contractor, could sit in the storm as two major trade partners flex and tussle. Magna represents about 26% of annualized rent, has geographically diversified operations internationally, and maintains an investment-grade credit rating. Magna won’t default on rent any time soon.

A reliable and growing dividend

For income investors, payout safety is paramount. Granite REIT has rewarded long-term unitholders with 15 consecutive years of distribution increases. The payout is exceptionally well covered by recurring cash flow. An adjusted funds from operations (AFFO) payout ratio of 70% for the second quarter and just 66% for the first half of the year means the monthly distribution is secured by distributable cash flow and has wide room for sustained annual growth.

Following a 4.4% raise in November 2025, another payout bump this coming November is well within reach as portfolio income continues to compound.

Foolish bottom line

Short-term market dips caused by rate anxieties or temporary growth pauses create compelling buy-the-dip opportunities for patient income investors.

Granite REIT remains a core buy-and-hold candidate for long-term wealth building, with a fortress balance sheet, safe monthly distributions, and an expanding income stream.

The post Why This 10%-Down Dividend Stock Is Still a Forever Buy for Me appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust and Magna International. The Motley Fool has a disclosure policy.

Buying quality Canadian real estate at a steep markdown is getting harder in 2026 as valuations generally rebound, but Nexus Industrial Real Estate Investment Trust (TSX: NXR.UN) still presents a rare passive income opportunity. Investors willing to back the REIT during the final stretch of its major strategic pivot can acquire units at a massive 40% discount to net asset value while pocketing an 8.1% monthly distribution yield.

Based on the Rule of 72, an 8.1% payout can double your capital in under nine years purely through income distributions, even without capital appreciation. If management executes its vision, that valuation gap could close, turning this high-yielding industrial landlord into a core compounding engine for Tax-Free Savings Account (TFSA) portfolios.

Nexus REIT turning industrial properties into high-yield cash flow

Over the past several months, Nexus REIT has undergone a structural transformation. Management sold off legacy retail and office assets to focus exclusively on pure-play industrial properties. Despite shedding 19 non-core properties in 2025 and another industrial asset in early 2026, the strategy is already yielding clear operational results.

Second-quarter net operating income grew 6.2% year over year to $34.1 million, while portfolio occupancy increased to 97%.

With 12.3 million square feet of gross leasable area (GLA) across 87 properties and a weighted average lease term of 6.7 years, the Canadian REIT benefits from exceptionally strong cash flow visibility. Crucially, in-place rents remain 14.9% below current market rates. As existing leases expire and renew, management has a natural, embedded earnings growth engine to drive ongoing net operating income expansion for years to come.

Navigating the high-yield distribution’s coverage tightrope

High dividend yields often signal elevated income and capital risks, and Nexus REIT requires careful monitoring on cash flow coverage.

Normalized adjusted funds from operations (AFFO) dipped slightly to $0.15 per unit during the second quarter, pushing the quarterly basic AFFO payout ratio to 106%. While a payout ratio over 100% is unsustainable in the long term, a single quarter does not tell the full story during a corporate restructuring.

Looking at the first six months of the year, the REIT’s basic normalized AFFO payout ratio improved to 99.3%. The monthly distribution remains covered by actual distributable cash income, though the margin for error is slim. Embedded rent increases and lease-ups across key markets remain vital to pulling this payout ratio safely and comfortably below 100%.

Nexus REIT’s AI data centre wildcard

Beyond standard industrial space, Nexus possesses an intriguing growth catalyst. Management recently identified space within its portfolio to develop high-density data centre facilities tailored for artificial intelligence (AI) infrastructure. Power access is currently the biggest bottleneck in the AI land rush, and Nexus holds two properties pre-licensed for this critically scarce resource.

Management is actively negotiating with prospective tenants for two sites. While these plans remain speculative until official contracts are signed, landing high-yield tenancy deals with deep-pocketed tech partners could dramatically re-rate unit values.

Investor takeaway

Canadian REIT distributions are generally treated as ordinary income for tax purposes, making the TFSA an ideal shelter for their high-yield monthly cash payouts. While Nexus REIT trades with a tight distribution safety margin today, its improved 97% occupancy rate, a long 6.7-year average lease term, and a deep 40% discount to its $13.23 net asset value (NAV) offer an attractive risk-reward setup.

Investors seeking substantial tax-free monthly income may find this industrial landlord worthy of a closer look in August 2026.

The post Could This 8.1% Monthly Dividend Stock Be a TFSA Investor’s Dream? appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

Canadian income investors looking to turn a $15,000 capital commitment into a meaningful passive income stream have a strong opportunity following the second-quarter 2026 earnings season. Allocating $5,000 into three top-tier dividend-paying Canadian stocks can construct a balanced three-stock mini-portfolio yielding $977.96 in annual passive income.

A $5,000 investment in each of Enbridge (TSX: ENB) stock, Slate Grocery Real Estate Investment Trust (TSX:SRG.UN) and Automotive Properties Real Estate Investment Trust (TSX: APR.UN) units could generate about $977.96 in annual passive income. Here’s how.

Enbridge stock: Buy the post-earnings dip to make steady passive income

A recent 10% dip in Enbridge stock following its July 31 second-quarter earnings installment presents an attractive entry point for long-term-oriented income investors.

ENB stock dropped because GAAP earnings fell short of market forecasts due to temporary margin compression from new capital projects coming online, non-cash charges, and a new share prospectus filing. However, the company’s core cash flow remains solid. With management projecting 2026 distributable cash flow of roughly $5.90 per share, the current dividend payout ratio sits comfortably around 65.8%, well inside management’s target range of 60% to 70%.

It pays “loyal” investors a 5.5% dividend yield from an irreplaceable network of energy pipelines and gas utilities, and Enbridge stock remains a reliable cash flow machine as it dabbles into renewable energy projects.

Investing $5,000 buys approximately 71 shares at recent prices, generating $68.87 quarterly or $275.48 annually in passive income.

Slate Grocery REIT

A $5,000 investment in Slate Grocery Real Estate Investment Trust units can pay you an equivalent of $29.81 CAD in monthly income distributions, translating to C$357.73 per year in passive income at current CAD/USD exchange rates.

Slate Grocery REIT owns 115 grocery-anchored properties spanning 15.2 million square feet located across 23 U.S. states. The portfolio boasts a robust 93.6% occupancy rate and a weighted average lease term of 4.4 years, which provides USD-denominated rental income visibility through 2030.

Slate’s core portfolio strength lies in its below-market rents: in-place rents average $13.10 USD per square foot compared to the U.S. market average of $24.79 USD going into the third quarter of 2026.

During the second quarter, the REIT achieved renewal spreads of 16.7% and new lease spreads of 41%, driving same-property net operating income up 2.3% over the past year. While its adjusted funds from operations (AFFO) payout ratio reached 113.1% due to high tenant improvements and leasing costs, the portfolio’s funds from operations (FFO) payout ratio remained respectable at 87.6%.

With 90.2% of its debt fixed at an average rate of 5%, interest costs remain contained while strong rental spreads may support long-term distribution sustainability.

Automotive Properties REIT

Even as online shopping transforms retail, buying a vehicle remains largely a hands-on experience. Automotive Properties Real Estate Investment Trust capitalizes on this reality by consolidating Canada’s fragmented dealership real estate market. Its acquisition strategy drove a 22.8% surge in rental income and an 18.6% increase in distributable cash flow during the last quarter.

On August 14, 2026, the Canadian REIT announced a 2% distribution increase alongside its second-quarter earnings, marking its second consecutive year of annual raises. The trust owns 95 properties with a long weighted average lease term of 8.1 years providing strong visibility into rental income receipts. A conservative debt ratio of 47.5% leaves ample balance sheet room for future acquisitions.

The REIT’s second-quarter AFFO payout ratio improved to 78.3% from 80.7% a year prior. Its monthly distributions are well covered by cash flow, and management has room for another payout raise in 2027.

Buying 411 shares with a $5,000 allocation secures $28.72 monthly, or $344.75 per year in passive income.

How to make $977.96 in passive income

To make nearly $980 in annual passive income, invest $5,000 in each of ENB, SGR.UN, and APR.UN as follows:

Combining these three holdings creates a diversified income stream backed by essential infrastructure, necessity retail, and prime commercial automotive properties. Splitting $15,000 evenly across all three dividend stocks generates a total payout of about $977.96 every year.

The post Here’s How $5,000 in Each of These 3 Stocks Could Pay You $977.96 appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Automotive Properties Real Estate Investment Trust, Enbridge, and Slate Grocery REIT. The Motley Fool has a disclosure policy.

In an attempt to build a worry-free passive income portfolio for retirement, the focal point isn’t supposed to be just the yield. I’d buy businesses with cash flows so predictable that I could comfortably turn off the monitor for the next five years, and still confidently expect compounding to continue as regular dividends and income distributions pour in non-stop.

In the Canadian real estate investment trust (REIT) asset class, selecting dividend stocks to hold for passive income without worry for five years is much easier. You just have to check out two key metrics first: portfolio occupancy rates and the weighted average remaining lease term (WALT).

High occupancy proves that tenants want the space; a WALT exceeding five years almost guarantees that contractual rent will keep rolling in every month, regardless of short-term economic hiccups.

As the second-quarter earnings season continues to unfold, two Canadian REITs standout: Granite Real Estate Investment Trust (TSX: GRT.UN) and Choice Properties Real Estate Investment Trust (TSX: CHP.UN). They check both boxes with flying colours – making them ideal buy-and-hold candidates for the next five years and beyond.

Granite REIT

Granite REIT qualifies as a long-term buy-and-hold dividend stock that pays monthly distributions and maintains a fortress balance sheet. It’s one of the largest industrial property owners, with an expansive portfolio of 145 properties comprising 61.5 million square feet of gross leasable area (GLA) worth more than $9.5 billion.

The industrial REIT’s prime industrial, logistics, and warehouse properties located across Canada, the United States and Europe enjoy very high occupancy rates. Committed occupancy at 98.1% going into the third quarter of 2026 could make several REIT portfolio managers envious. With a weighted average remaining lease term of 5.1 years, Granite REIT’s portfolio should comfortably earn steady monthly rentals for the next half decade with ease.

Most noteworthy, new tenants are willing to pay higher rental rates. The trust averaged a 7% rental spread on new leases and renewals during the past quarter. Impressively, growing rental income resulted in a 9.7% year-over-year increase in portfolio net operating income last quarter.

Granite REIT has raised its distributions for 15 consecutive years now. With a low payout rate of adjusted funds from operations (AFFO) of 70%, the monthly distribution appears safe, well covered by recurring distributable cash flow, and leaves room for further annual raises.

I would be comfortable earning an entry-level 3.9% annual yield on this industrial REIT, with room for potential annual dividend raises over the next five years.

Choice Properties REIT

It boasts being Canada’s largest retail REIT with a growing portfolio of 699 properties, including industrial and mixed-use residential space, and Choice Properties REIT’s necessity-based retail portfolio is heavily anchored by its steady, strong, and reliable strategic partner, Loblaw Companies, giving the real estate behemoth strong rental earnings visibility beyond the next five years.

Loblaw, a major tenant comprising 57% of portfolio leasable space, has a master lease agreement with the REIT that extends to 2033, and allows for five-year lease renewals. The retailer recently renewed some leases averaging five years in maturity. Overall, the REIT’s weighted average lease term should be around 6 years.

Why should Choice Properties REIT belong in a long-term dividend portfolio for the next five years? Well, Choice Properties enjoys high occupancy rates averaging 97.7%, it recently reported double-digit rental spreads of 19% on renewals and releases, grew its funds from operations (FFO) over the past six months and paid out about 73% of FFO in distributions during the past quarter.

The REIT’s well-covered monthly distribution yields 5.1%.

The post Here Are 2 Dividend Stocks I’d Hold Without Worry for 5 Years appeared first on The Motley Fool Canada.

More reading

• This TFSA Setup Could Generate Over $110 a Month
• I’d Buy This Dividend Stock Before Falling Rates Send Income Investors Back
• Best Canadian REITs for Dividend Income Right Now
• I’m Holding These 2 Canadian Stocks in My TFSA for Life
• How Does Your TFSA Compare as You Approach 60?

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.