Canadian income investors who relied on Slate Grocery Real Estate Investment Trust for monthly dividends received surprising news recently. With the U.S.-focused grocery landlord agreeing to a September 28 buyout deal set to close in early 2027, its steady monthly payouts have already disappeared. Coupled with ongoing portfolio reorganizations at major Canadian REIT peers like H&R Real Estate Investment Trust and a recent acquisition of First Capital REIT’s properties, real estate sector consolidation is actively shrinking the universe of high-yielding holdings. If you rely on commercial real estate distributions to power your monthly passive income stream, replacing those lost payments with a resilient alternative should be a top priority heading into the final quarter of this year.

Canadian Net REIT: A tiny fortress built for reliable monthly dividends

Fortunately, high-quality dividend stocks remain available on the Toronto Stock Exchange. One standout candidate for Canadian portfolios is Canadian Net Real Estate Investment Trust (TSXV: NET.UN). It pays a reliable 6% distribution yield, paid directly to unitholders every month. The $130 million small-cap commercial landlord offers a compelling combination of defensive cash flow, exceptional payout coverage, and attractive long-term distribution growth potential.

Canadian Net REIT manages a specialized portfolio of 98 retail properties across Canada, spanning over 1.5 million square feet of gross leasable area (GLA). What makes this trust particularly appealing for conservative investors in October is its net-lease business model. Under a triple-net structure, tenants assume responsibility for property operating expenses, property taxes, and ongoing maintenance expenditures.

The REIT’s tenant roster is dominated by essential service providers, such as grocery chains, gas stations, and quick-service restaurants to minimize operational volatility. By shifting overhead costs onto tenants, Canadian Net REIT effectively protects its operating margins against Canadian inflationary pressures. Paired with a perfect 100% occupancy rate heading into the third quarter of 2026 and a long weighted average lease term of 5.7 years, the trust boasts high visibility into its future cash flows.

Unparalleled distribution safety

From a balance sheet and distribution safety perspective, Canadian Net REIT shines brightest right now. The trust pays monthly distributions of $0.03 per unit, with payouts already formally declared through December 2026. With units recently trading around $5.96 per unit, that equates to a juicy 6% annualized yield.

More importantly for risk-conscious investors, the trust reported an Adjusted Funds From Operations (AFFO) payout ratio of just 54% during the first half of 2026. In the REIT asset class, an AFFO payout ratio in the mid-50% range represents a massive safety buffer. It guarantees that your monthly passive income stream is anchored by distributable cash flow, while providing management ample retained capital to pay down mortgages and fund strategic expansion without diluting unitholders.

Proven growth at a discounted price

The trust’s growth trajectory further reinforces the bull case. Over the past five years, Canadian Net REIT expanded rental revenue at a 12.6% compound annual growth rate. Rental income growth has supported a remarkable 14-year history of distribution increases. During the first six months of 2026, rental revenue grew 3.3% year-over-year, propelling funds from operations (FFO) per unit up by 3%. As Chief Executive Officer Kevin Henley highlighted in the recent earnings report, growth continues to be driven by organic rent step-ups, proactive lease renewals, and disciplined acquisitions, including a single-tenant facility in Quebec added late in the second quarter.

At current prices, Canadian Net REIT trades at an inviting valuation relative to its strong operational performance. Units trade at a cheap single-digit forward price-to-AFFO multiple of 9.1. Canadians looking to secure a durable monthly passive income stream and nourish their nest eggs for years to come could scoop up some Canadian Net REIT units today.

The post This 6% Dividend Stock Can Pay Into Your Nest Egg Every Month 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 Canadian Net Real Estate Investment Trust and First Capital Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Securing a dependable stream of high-yield passive income is often top of mind for investors transitioning into retirement. While the broad Canadian market offers plenty of quarterly dividend options, few income investments match the cash flow predictability of pure-play industrial real estate that pays unitholders directly on a monthly schedule. Nexus Industrial Real Estate Investment Trust (TSX: NXR.UN), a growth-oriented Canadian REIT, recently declared a monthly distribution of $0.05 per unit. At recent market prices around $7.05, this payout translates to a staggering 9% annualized yield, offering Canadian retirees an attractive dividend stream for compounding monthly income.

Nexus Industrial REIT: A high-yield passive income play backed by long-term leases

Building a resilient retirement portfolio requires looking beyond current yields. To ensure your monthly dividend cheque remains reliable, it’s necessary to evaluate the underlying real estate assets generating that cash flow.

Following a deliberate transition from a diversified landlord into a focused industrial operator, Nexus Industrial REIT currently holds a portfolio of 87 properties comprising roughly 12.3 million square feet of gross leasable area (GLA). Crucially for Canadian income-focused investors, the trust boasts a weighted average lease term of 6.7 years.

This extended duration means the portfolio should remain predominantly occupied by rent-paying logistics and warehousing tenants nearly seven years into the future, providing long-term earnings and cash flow visibility for your high-yield monthly passive income strategy.

Is the 9% distribution safe for Canadian retirees?

Admittedly, income investors should examine the Nexus Industrial REIT distribution’s recent stress test. The REIT caught market attention in its second-quarter earnings report when its normalized adjusted funds from operations (AFFO) payout ratio drifted to 102.2%. Because AFFO represents a REIT’s truest measure of recurring distributable cash flow after funding capital expenditures and leasing costs, a payout ratio exceeding 100% naturally sparks safety questions. However, management expects this uptick to prove temporary, anticipating the normalized AFFO payout ratio to average below 100% for the full year 2026.

Built-in growth: Positive rent spreads to provide a cash flow pathway

One key catalyst to bring Nexus REIT’s payout metrics back into safe territory is the trust’s significant organic rent growth potential. Portfolio occupancy recently inched higher to a tight 97%, while the industrial portfolio’s average in-place rents sit 14.9% below prevailing market rates across Canada. As existing lease agreements mature, Nexus is capturing substantial positive re-leasing spreads.

During the second quarter alone, management re-leased 380,000 square feet of renewals at an average 6% rental spread over expiring rates, pushing same-property net operating income higher. As these market-rate mark-ups combine with newly completed development projects and property acquisitions, distributable cash flow per unit should steadily grow over upcoming quarters.

An investment-grade balance sheet lowering capital costs

Equally encouraging for retirement investors is Nexus Industrial REIT’s balance sheet overhaul taking place in the background. Early this year, Nexus earned an investment-grade credit rating, unlocking access to lower-cost institutional debt. The trust capitalized on this credit enhancement by issuing an inaugural $500 million bond offering in the second quarter, followed by a $300 million debenture offering in September. By refinancing expensive bank credit lines with lower-cost fixed-rate debt, Nexus is structurally lowering its weighted average cost of capital and safeguarding future cash flow for unitholders.

Deep value income opportunity at a 47% discount

The final element of an investment idea on Nexus Industrial REIT is its valuation. Going into the third quarter, the trust reported a net asset value (NAV) of $13.23 per basic unit. Trading around $7.05 at writing, REIT units sell at a massive 46.7% discount to their intrinsic real estate value today.

Even if higher Canadian bond yields prompt fair-value property markdowns, a near 50% discount offers an exceptionally wide margin of safety.

Nexus REIT presents a compelling retirement investment opportunity for contrarian investors targeting high-yield passive income. Its generous 9% monthly payout today, paired with substantial capital appreciation upside as the market eventually re-rates units higher toward its net asset value, may offer outsized long-term returns in a dividend portfolio.

The post A 9% Dividend Stock for a Monthly Retirement Cheque 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.

Recent pressure from rising bond yields across Canada and the United States has weighed on real estate investment valuations, creating a temporary disconnect between market prices and underlying business fundamentals. The 14.7% pullback in SmartCentres Real Estate Investment Trust (TSX: SRU.UN) units over the past three months presents an enticing investment opportunity for Canadian retail investors hunting for dependable monthly passive income. I can’t stop thinking about the high-yield offering as I evaluate personal portfolio positions for October and for the fourth quarter of 2026.

A sustained downward price movement has pushed the trust’s income distribution yield up to an attractive 7.1%. At this level, the Rule of 72 predicts that automatically reinvesting the top Canadian REIT’s monthly payouts could effectively double an investor’s initial capital in just over a decade, without resorting to a broker’s risky leverage or employing tax-heavy day trading strategies.

What makes SmartCentres REIT appealing?

What makes the retail REIT’s high distribution yield appealing is the underlying real estate operations backing its payouts. Led by founder Mitchell Goldhar, SmartCentres REIT holds a massive $12.1 billion portfolio spanning 201 predominantly retail properties expected to generate over $900 million in rental income this year. Portfolio occupancy rose to a robust 98.1% during the first half of the year, anchored by dominant retail giants like Walmart, Loblaw, and Costco, and supported by the successful releasing of vacated Toys “R” Us space.

With an average lease term of 4.2 years, recurring monthly rental cash flows remain highly stable. Organic growth is equally encouraging, as new non-anchor leases executed during the second quarter captured a 12% rent increase. Management has already renewed or re-leased 86% of its 2026 lease maturities while repurposing vacant ex-Toys “R” Us locations with higher-traffic tenants slated to begin paying rent between the fourth quarter and early next year.

While elevated interest rates generally pose debt challenges for real estate owners, SmartCentres maintains strong defensive balance sheet protection. The trust has locked in 88% of its debt at fixed interest rates, protecting operating income and distributable cash flow against rate swings.

A well-covered high-yield dividend

The REIT’s distribution coverage remains well intact. SmartCentres REIT paid out only 85.6% of its operating cash flow during the second quarter and 86.5% of its adjusted funds from operations (AFFO) in the first half of the year. Even when stripping out variable income from land sales, derivatives, and residential condo completions, the normalized AFFO payout ratio sits at a sustainable 92.7%.

Buy for value, invest for passive income

SmartCentres REIT could be a good value investment for passive income and future capital gains.

The portfolio is growing. Beyond its standard retail footprint, SmartCentres is driving long-term value creation through an aggressive mixed-use intensification strategy. The trust is advancing 24 new developments that incorporate townhomes, self-storage facilities, and rental apartments into existing shopping centers to boost foot traffic permanently. Entering the third quarter, nine projects were actively under construction, including a new self-storage development in Edmonton and a 65-unit rental apartment building in Vaughan’s ArtWalk district.

At recent prices around $26.30 per unit, SmartCentres trades at a steep 25% discount to its most-recent net asset value (NAV) of $35.10 per unit reported on June 30, 2026. With third-quarter operating results set for release after market close on November 4, 2026, long-term-oriented Canadian investors searching for deeply discounted real estate assets and a 7.1% monthly dividend payout may want to take a closer look at this real estate giant this October.

The post Why I Can’t Stop Thinking About SmartCentres REIT and Its 7.1% Dividend appeared first on The Motley Fool Canada.

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• I’d Rather Own SmartCentres at 98.1% Occupancy Than Chase a Bigger Yield
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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Costco Wholesale, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy.

High-yield dividend stocks often come with a catch, but Firm Capital Property Trust (TSX: FCD.UN) is currently proving that a generous monthly payout can actually be backed by improving fundamentals. Its regular distributions yield an enticing 7.6% today as the Canadian real estate investment trust (REIT) shrugs off its share of market skepticism.

However, the diversified REIT’s latest earnings report delivered a crucial turning point: the trust’s Adjusted Funds From Operations (AFFO) payout ratio, a key measure of distribution safety, improved to a sustainable 98% during the second quarter of 2026, down significantly from 106% a year ago. Distribution coverage improved significantly.

Paired with a 7% year-over-year increase in Net Operating Income (NOI) to $10.2 million, Firm Capital is actively bolstering its distribution safety while transforming its real estate portfolio for long-term income growth. Tax-Free Savings Account (TFSA) investors seeking reliable passive income should take a closer look at this under-the-radar REIT.

Firm Capital Property Trust is growing its income base with defensive assets

Firm Capital Property Trust’s underlying strength lies in its diversified, recession-resilient retail, industrial, and residential real estate. Before closing a $218 million acquisition of manufactured home communities (MHCs) in July, the trust owned a well-balanced portfolio of 62 commercial properties, primarily grocery-anchored retail and flex-industrial assets, alongside multi-residential units and manufactured home communities (MHCs). Overall occupancy remains high at 94.4% for commercial properties, but its manufactured home communities are the real standout star, boasting a near-perfect 99.7% occupancy rate.

Recognizing the sticky demand and low capital expenditure requirements of MHCs, management is aggressively expanding this MHC segment to position Firm Capital as one of Canada’s leading single owners of manufactured housing communities. This strategic pivot adds high-margin, defensive rental cash flow to the balance sheet while organic growth continues to push rents higher – with industrial rent per square foot rising by 6% year-over-year during the second quarter.

The REIT’s balance sheet also remains on solid footing as management maintains a conservative 50% Debt-to-Gross Book Value ratio and recently closed $41.2 million in mortgage refinancings.

Furthermore, the trust trades at an attractive 15.5% discount to its Net Asset Value (NAV) of $8.06 per unit. Just as importantly, key insiders and management control approximately 10% of outstanding trust units, ensuring decision-makers have substantial skin in the game and remain tightly aligned with retail unitholders.

Your TFSA as the ultimate home for FCD.UN

While a 7.6% distribution paid out monthly sounds like a dream for income seekers, holding REITs in a non-registered taxable account, generally, can quickly turn into an accounting nightmare. REIT distributions are rarely treated as simple eligible dividends; instead, they are typically a variable mix of ordinary income, capital gains, and Return of Capital (RoC).

Because Return of Capital reduces your adjusted cost base (ACB) for tax calculation purposes, and the component varies from year to year, holding FCD.UN in a taxable account requires tedious manual bookkeeping every tax season to avoid miscalculating capital gains when you eventually sell.

By locating this high-yielding REIT inside your Tax-Free Savings Account, you eliminate the tax-tracking headache entirely.

A $10,000 investment in FCD.UN today would generate roughly $760 per year, or about $63.33 in passive income every single month, flowing straight into your account 100% tax-free. You can freely reinvest those distributions to compound your wealth or collect the cash without handing a single dime to the CRA.

Investor takeaway

With its AFFO payout ratio safely back below 100%, an expanding footprint in high-occupancy manufactured housing, and strong insider alignment, Firm Capital Property Trust offers a compelling blend of value and passive income safety for Canadian income investors. Locating the 7.6% monthly distribution payer inside a TFSA locks in tax-free income while keeping your tax season completely stress-free.

The post Looking for TFSA Income? This 7.6% Dividend Stock Should Snag Your Attention 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Most Canadian dividend stocks will pay you four times a year. But let’s be honest: your bills don’t take a three-month break, and your passive income shouldn’t either. If you are looking for a reliable monthly dividend to add to your passive income portfolio, Canada’s real estate sector has established a three-decade track record of delivering. The longest standing monthly payer is RioCan Real Estate Investment Trust (TSX: REI.UN). As Canada’s oldest surviving REIT, RioCan has paid continuous monthly distributions since 1993, backed by a portfolio of 164 highly-occupied prime urban retail properties.

Today, RioCan REIT offers new investors a 5.6% annualized yield via a monthly payout of $0.10 per unit, which is supported by a safe 67.7% payout ratio and consecutive annual payout hikes since 2022. The retail REIT remains a premier cash-flow generator that keeps showing up, month after month, for income-seeking unitholders.

A 5.6% yield with growing upside

On September 15, RioCan REIT declared its latest monthly distribution of $0.10 per unit (payable October 7, to unitholders of record on September 30). That works out to a juicy 5.6% annualized yield.

Better yet, that yield could grow even bigger down the road as management sustains a re-established distribution growth policy. RioCan hasn’t missed a single monthly payout since 1993 and has raised its distribution every year since 2022.

RioCan’s strong operations backing a growing monthly paycheque

A high dividend yield is great, but only if the business behind it can sustainably support it. Fortunately, RioCan REIT’s underlying retail properties portfolio is firing on all cylinders in 2026. Net Operating Income (NOI) growth, supported by high occupancy rates, pricing power, and a sticky tenant book makes the retail REIT one of the best sources for reliable monthly passive income.

During the second quarter, diluted net income per unit grew 6.1% year over year, driven by fair value property gains and repurchases of issued units. Beyond the fair value gains lies a thriving real estate business.

In-place occupancy rose from 97.5% to 98.1% between July 2025 and June 2026, with committed occupancy increasing to 98.8%.  

RioCan renewed expiring leases at an impressive average leasing spread of 23.1% during the past quarter. Given that in-place rents still sit well below current market rates, RioCan REIT retains plenty of room to raise rents as leases roll over.

Most noteworthy, the trust maintains a tenant retention rate near 90%, Canadian businesses want to stay in its high-traffic urban centres.

Thanks to this leasing momentum, management upgraded its 2026 Same Property Net Operating Income (SP NOI) growth guidance from 3.5%–4% up to 4%–4.5% in August.

Should you buy RioCan REIT for its monthly payout?

RioCan REIT appeals as a monthly dividend stock to buy given its safe payout coverage and smart capital management.

The retail REIT’s distribution payout ratio sits at a comfortable 67.7% of its Funds From Operations (FFO) over the 12 months ending June 30, 2026, leaving a comfortable cash flow cushion.

Longtime investors will remember that RioCan cut its monthly payout by 33% in December 2020 (from $0.12 to $0.08 per unit) amid severe COVID-19 lockdown uncertainty. While tough at the time, that move was intended to save over $150 million annually. Management funneled excess cash into new developments, debt repayment, and ongoing unit buybacks – setting a safer foundation from which a reliable monthly dividend has sustainably grown since 2022.

Foolish takeaway

RioCan REIT’s payout is well-protected, yet the stock still trades at a bargain. Sitting at a trailing Price-to-FFO multiple of 12.1, RioCan units are noticeably cheaper compared to peers like Choice Properties REIT (14.0x) and CT REIT (12.3x).

If you want a juicy reliable monthly dividend that generates steady passive cash flow while offering some income upside, RioCan REIT could belong near the top of your buying list.

The post The Dividend That Keeps Showing Up, Month After Month 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Investment goals come in all shapes and sizes, but few feel as satisfying as building a portfolio that directly funds your lifestyle. If you want your investments to do the heavy lifting for your annual travel, you don’t need to buy speculative and fickle penny stocks anymore – invest in steady Canadian dividend stocks that generate reliable, recurring portfolio cash flow.

Choice Properties Real Estate Investment Trust (TSX: CHP.UN) is one of my favourite sources of passive income. Yielding a sturdy 5.2%, this Canadian REIT pays out distributions every single month, making it an ideal candidate to build an automated, dedicated “vacation fund.”

An essential real estate-anchored passive income stream

Choice Properties is Canada’s largest REIT, boasting a portfolio of nearly 700 properties spanning over 68 million square feet of gross leasable area, valued at more than $18 billion.

The secret to its resilience lies in its defensive foundation. Approximately 83% of its portfolio is concentrated in necessity-based retail. Grocery titan Loblaw Companies serves as its principal anchor tenant, representing roughly 57% of gross rental revenue.

Regardless of economic downturns or inflation pressures, Canadians must buy food and essential household items. That non-negotiable consumer demand has allowed Choice Properties to maintain a stellar portfolio occupancy rate of 97.7% (at June 30, 2026) while consistently generating positive leasing spreads.

As a high-quality investment, Choice Properties REIT units trade at a premium to their most recent net asset value of $14.43 measured on June 30, 2026.

The December 15 & January 15 payout advantage

Unlike standard dividend stocks that pay quarterly, Choice Properties distributes cash every 30 days – arriving around the 15th of every month. This payment schedule provides a unique tactical advantage for Canadian travellers.

CHP.UN’s December 15 payout drops fresh cash as winter flight bookings, resort deposits, or holiday getaway expenses come due. Its January 15 payout hits your brokerage account right when post-holiday credit card statements arrive in the mail.

The remaining 10 monthly payouts steadily accumulate throughout the year, building a stress-free travel piggy bank.

With an Adjusted Funds From Operations (AFFO) payout ratio that comfortably averaged around 88% for 2025, and three consecutive years of distribution increases (the trust currently pays $0.065 per unit monthly, or $0.78 annualized), the REIT’s payout is well-covered by underlying operational cash flow.

Vacation investing with CHP.UN: How much would you need?

To see how investing in Choice Properties REIT units can help fund specific travel goals, here is how many units an investor would need at a recent unit price of $15.06.

Holding the indicative volume of units inside a Tax-Free Savings Account (TFSA) means 100% of every monthly distribution flows directly toward flight bookings and hotel stays – completely tax-free.

Foolish bottom line

Saving for vacations out of a regular paycheque can feel frustrating when everyday expenses eat into disposable income. Investors can effectively build passive income-generating portfolios around defensive Canadian dividend stocks that help finance lifestyles while preserving capital for retirement.

Choice Properties REIT offers a compelling way to quietly fund a trip every year for income investors seeking reliable monthly yields with a built-in holiday bonus.

That said, diversifying your investments across several TSX dividend stocks, and into other asset classes, like REITs, may reduce your total portfolio risk and make the investing journey much more exciting.

The post This Stock Could Quietly Pay for Your Next Vacation, Every Year 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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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• How to Build a Canadian Portfolio That Pays You Monthly

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.

More reading

• Enbridge vs. TC Energy: Which Stock Is the Better Buy?
• 2 High-Yield Dividend Stocks to Buy and Hold for a Decade of Income
• Down 16% and Paying 5.8%: The Case for Buying Enbridge Now
• Enbridge’s $41 Billion Backlog Is Why I’m Not Selling
• Why I’d Rather Own Enbridge and Its $41 Billion Backlog Than Chase a Higher Yield

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

• The Best Monthly Paying Dividend Stock on the TSX: My Pick and My Buy Price
• This Monthly Dividend Stock Turns $50,000 Into About $190 a Month
• REITs Are Falling as Bond Yields Rise: This Canadian Landlord Looks Better After the Selloff
• Make $250 a Month Tax-Free: The 4-Stock TFSA Plan I’d Follow
• How to Build a Canadian Portfolio That Pays You Monthly

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.