Transitioning from earning active employment income to living off a pension and an investment portfolio is one of the most critical financial shifts a retiree will ever make. While the willingness to take on capital risk naturally declines in retirement, the need for reliable, recurring cash flow increases dramatically. Relying on liquidating equity positions every month to pay for monthly living expenses can be nerve-wracking during periods of market volatility. Fortunately for Canadian retirees who want to make passive income without losing sleep over market swings, the low-risk fixed-income space offers a compelling investment option through the Purpose Global Bond Fund (TSX: BND).

A smarter way to make monthly passive income in retirement

Incepted in 2015, the Purpose Global Bond Fund is an exchange-traded fund (ETF) structured specifically as a stable cash-flow generating portfolio. The fund currently pays a regular monthly distribution of $0.08 per share, translating to an attractive annualized dividend yield of roughly 6%.

The monthly dividend ETF’s track record of payout stability and dividend growth is what makes the BND particularly appealing for retirees looking to make passive income. Monthly distributions have expanded from $0.05 per share in early 2020, even navigating a raise to $0.06 during the height of the pandemic, indicating the portfolio design expertise of its manager, the strength and resilience of its underlying holdings, and proving the effectiveness of its all-weather income strategy.

BND Dividend data by YCharts

Boasting over $2.7 billion in assets under management in October, the ETF pools together hundreds of fixed-income instruments across international credit markets. Rather than taking speculative bets, the portfolio prioritizes credit quality and steady income generation. The fund maintains a moderate portfolio duration of 5.85 years, striking a balance between yield capture and interest rate risk.

Geographically, the fund allocates 80% of its capital to the United States, 12% to emerging markets, and 5% to Canada, offering Canadian investors instant international credit diversification.

How active management helps ETF investors make passive income safely

Profitably navigating global fixed-income markets usually requires institutional-grade credit expertise, deep exposure, and wide global information sources that individual investors often lack.

The Purpose Global Bond Fund is actively managed by Purpose Investments, supported by Neuberger, an employee-owned private, independent investment manager founded in 1939. A global credit research team of professionals conducts deep fundamental analysis on every credit issuer.

To support this active mandate, the fund charges a Management Expense Ratio (MER) of 0.43%. While this expense ratio is higher than that of passive index-tracking bond funds, this fee is well justified by the team’s hands-on credit research, active duration positioning, and ability to navigate changing credit cycles.

A look under the hood reveals a well-calibrated, defensive fixed income asset mix. Investment-grade corporate credit forms the primary pillar at 35.9% of the portfolio. Cash and cash equivalents comprise a substantial 32%, providing ample liquidity and capital protection. High-yield corporate credit accounts for 15.5% to enhance overall yield, while the remainder spans government bonds, collateralized loan obligations (CLOs), mortgage-backed securities (MBS), and asset-backed securities (ABS). From a sector standpoint, exposure is anchored in strong, cash-generating industries led by financial services at 21.1% and real estate at 19.6%.

How to make monthly passive income tax-efficiently with the BND ETF

For Canadian retirees, account selection is just as crucial as security selection. In 2025, about 90.2% of BND’s distributions were classified as foreign income for Canadian tax purposes. Because the U.S. tax code does not recognize the Canadian Tax-Free Savings Account (TFSA) for foreign tax treaty exemptions, holding the BND ETF in a TFSA can expose your income to unrecoverable foreign withholding taxes.

To make passive income as tax-efficiently as possible, retirees should consider holding the ETF inside a Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF), where foreign tax treaty benefits remain fully intact.

Ultimately, the Purpose Global Bond Fund delivers a powerful combination of institutional credit selection, global diversification, and a durable 6% monthly payout. The monthly income ETF deserves a closer look for retirees seeking a conservative, yield-focused cornerstone for their portfolio.

The post This Monthly Income ETF Yields 6% and I Think Retirees Should Give it a Closer Look 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.

Back in August 2025, I made a bullish case for Primaris Real Estate Investment Trust (TSX: PMZ.UN) as a long-term passive income investment over a 10-year holding period. At the time, units traded at a steep 30% discount to their Net Asset Value (NAV), and offered a rich 5.8% distribution yield. Fast forward to today, and the market has finally woken up to the Canadian retail REIT’s attractive offerings. Units have rallied about 50% since, compressing the trust’s distribution yield to 4.1%.

While a 4.1% yield might seem less flashy on the surface, passive income investors, especially retirees, shouldn’t look away. Primaris REIT is an even higher-quality investment today than it was a year ago. What began as a deep-value turnaround play has matured into a premier, high-quality monthly dividend-growth compounder one can confidently buy for monthly retirement income.

Primaris REIT’s October catalysts

During an investor day presentation on October 7, Primaris REIT unveiled updated three-year performance targets that significantly elevate its distribution growth trajectory through 2029. Most notably, management has doubled its targeted annual distribution growth rate from 2%–4% up to an impressive 4%–8% per year. This payout growth is anchored by strong operational execution, with long-term Funds From Operations (FFO) per unit growth targeted at 4%–8% annually.

To achieve its more ambitious latest targets, Primaris is firing on multiple operational cylinders. The REIT, which continues to build an exclusive portfolio of enclosed shopping malls, recently completed a landmark $411 million acquisition of Upper Canada Mall in the Greater Toronto Area. The deal, which closed days after the trust raised $230 million in new equity, adds a property with high foot traffic sourced from high-income households. It elevates the trust’s overall portfolio quality.

Simultaneously, management is aggressively converting lower-rent anchor spaces, such as former Hudson’s Bay department store locations, into vibrant footprints leased to high-traffic national retailers. Re-tenanting these large spaces is unlocking significant Net Operating Income growth at fourfold rent spreads over legacy leases.

Why buy PMZ.UN for sustainable retirement income

Primaris REIT presents a compelling operational model for retirees who depend on regular distributions to meet monthly living expenses. Unlike traditional dividend stocks that distribute cash quarterly, Primaris currently pays unitholders a $0.07 per unit monthly distribution that fits seamlessly into a monthly retirement spending plan.

What makes the retail REIT’s monthly cash flow particularly appealing is its potential durability. Primaris boasts one of the most conservative distribution safety profiles in the Canadian REIT sector, maintaining an FFO payout ratio under 50% and an Adjusted Funds From Operations (AFFO) payout ratio near 66%. This conservative payout structure guarantees that the monthly distribution remains secure even during economic downturns, while leaving substantial retained cash flow to fund internal redevelopments without over-leveraging the real estate portfolio.

Inflation poses another ongoing challenge for retirees relying on fixed-income investments. A static dividend loses purchasing power over a multi-decade retirement. By targeting annual distribution hikes between 4% and 8% through 2029, Primaris REIT promises to raise the payout at rates that outpace general inflation rates in Canada.

As Canada’s only REIT focused strictly on enclosed shopping centres, Primaris currently benefits from zero new supply competition. Soaring construction costs and land constraints make building new enclosed malls exceedingly challenging in Canada today, providing existing dominant centres with exceptional tenant retention and lease pricing power.

Valuation considerations

While PMZ.UN no longer offers the fire-sale 30% discount seen in mid-2025, its current valuation remains fair and reasonable given the enhanced quality of its asset base. Trading near its reported NAV of $21.72 per unit, unitholders are paying fair value for a well-occupied premier commercial portfolio.

Supporting this fair valuation is an investment-grade financial fortress. Primaris holds nearly $5 billion in unencumbered assets, maintains a conservative 40.5% debt-to-assets ratio, and commands over $650 million in total liquidity. This financial flexibility enables management to weather broader market volatility while continuously executing strategies that will support growing distributions to unitholders.

Foolish bottom line

Chasing the highest yields often leads to painful dividend traps that may slow the growth of a retirement portfolio. Sustainable wealth in retirement can be maintained and built from reliable, growing passive income streams, and PMZ.UN has been a wonderful total return performer, historically.

PMZ.UN data by YCharts

Primaris REIT may yield 4.1% today instead of a historical 5.8%, but its risk profile is lower, its growth guidance has doubled, and its property portfolio is stronger than ever. Income-focused investors seeking monthly cash flow that consistently beats inflation may consider buying and holding Primaris REIT units for the long haul.

The post A 4.1% Dividend Stock Worth Considering for Monthly Retirement Income appeared first on The Motley Fool Canada.

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• Aritzia Jumped 20% in a Day: What It Says About the Canadian Consumer
• How Much Should You Have Saved for Retirement by 40?

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

I usually don’t expect utility stocks to go ahead with major corporate shake-ups. Most of the time, I’m happy even if a defensive utility firm keeps investing in its infrastructure, growing earnings, and sending me a dividend every quarter. But Emera (TSX: EMA) seems on a path toward something much bigger. It recently announced a merger with Canadian Utilities (TSX: CU), a subsidiary of ATCO (TSX: ACO.X). As part of the deal, ATCO’s industrial services businesses will be spun off into a separate company, while the combined Emera-Canadian Utilities business is expected to have an enterprise value of about $72 billion and serve roughly six million customers. That’s a massive change for a utility firm investors have traditionally looked to for stability and dividend income.

Let’s take a closer look at Emera’s fundamentals and what the proposed merger could mean for its future, and whether EMA stock is worth buying before the deal closes.

Why Emera stock is worth watching

Before diving deeper into merger details, let’s quickly look at Emera’s existing business and dividend. This Halifax-based company mainly operates regulated electricity and natural gas utilities, including Tampa Electric in Florida and Nova Scotia Power.

At the time of writing, EMA stock traded at $65.20 per share with a market cap of $20.1 billion. Despite its improving fundamentals, the company’s shares have lost 11% in six months, making it look undervalued based on its long-term outlook. Emera still offers an attractive 4.5% annualized dividend yield and has been raising dividends for 20 straight years.

In the second quarter of 2026, Emera’s adjusted net profit fell about 10% year-over-year (YoY) to $212 million. This decline was partly because of higher interest expenses, foreign exchange losses, weaker earnings at New Mexico Gas, and the sale of Grand Bahama Power.

Nevertheless, the company’s first-half adjusted net profit grew about 2% YoY to $627 million, while its operating cash flow before working capital improved by 8%. The company also invested more than $1.7 billion in infrastructure during the first half and continues to target average adjusted earnings-per-share growth of 5% to 7% through 2030.

How the merger could strengthen Emera

Beyond Emera’s existing operations, Canadian Utilities could give it a larger growth opportunity. Under the deal announced earlier this month, Emera plans to merge with Canadian Utilities, a subsidiary of ATCO, through an all-share transaction. As part of this arrangement, ATCO’s industrial services businesses will be spun off into a separate publicly traded company called New ATCO.

Existing Emera shareholders are expected to own about 60% of the combined utility business, which will continue operating under the Emera name.

The merged company is expected to have an enterprise value of about $72 billion, a $45 billion rate base, and roughly six million customers. More importantly, around 95% of its earnings would come from regulated utilities, with about 80% generated in Florida and Alberta. This strong focus on regulated operations in two high-growth markets could provide Emera with a solid foundation for steady earnings and dividend growth in the years to come.

In addition, the combined company’s planned $32 billion capital program through 2030 is expected to drive annual rate base growth of 7% to 8%.

Canadian Utilities already brings encouraging results to the table. The company’s second-quarter adjusted earnings rose nearly 16% YoY. Its fully contracted $2.9 billion Yellowhead Pipeline project has also received key regulatory approvals.

Should investors buy EMA stock before the deal closes?

After getting all approvals, the Emera-Canadian Utilities merger deal is likely to close in the third or fourth quarter of 2027. Meanwhile, Emera plans to outline its 2027 to 2031 capital and funding plan on November 6.

For long-term income investors, I think Emera looks attractive at its current price. Its 4.5% yield offers income today, while the merger could give it additional earnings opportunities over time. Although the deal isn’t guaranteed, investors would still own an established regulated utility business while waiting for the outcome.

The post Is Emera Stock a Buy Before Its Proposed Merger With Canadian Utilities? appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

If you think you won’t need another paycheque after retirement, I hope you’re right. But personally, I’d feel much better knowing some money was still coming in every few months, even when I wasn’t working anymore. After all, the bills don’t retire just because you do. That’s one reason I find dividend stocks so appealing.

You can spend your mornings doing whatever you enjoy while the businesses you own continue working in the background. Of course, I wouldn’t trust just any high-yield dividend stock with that job. Instead, I’d want a stock that generates healthy cash flow and has a reasonable chance of growing its payouts over time.

In this article, I’ll highlight one fundamentally strong dividend stock and explain why it could help keep income flowing into your portfolio long after you retire.

A top Canadian dividend stock for retirement income

The stock I want to highlight here is Pembina Pipeline (TSX: PPL), as its extensive energy infrastructure network makes it an attractive choice for investors looking to earn dependable passive income after retirement. The Calgary-based company operates pipelines, processing facilities, and other infrastructure that play an important role in moving Canadian energy products to market.

Pembina stock has climbed 29% so far in 2026, and currently trades at $67.55 per share with a market cap of $39.3 billion. Besides its impressive share-price performance, PPL also offers an attractive 4.4% annualized dividend yield and distributes its payouts every quarter. Its latest declared quarterly dividend of $0.74 per share translates into $2.94 yearly.

While Pembina’s dividend and share-price gains are appealing, I also like the company’s improving financial performance and growing pipeline of expansion projects, which could support retirement income for years to come.

Strong financials supporting dividends

After all, a dividend stock can only keep rewarding investors if the underlying business continues to generate healthy cash flow. And Pembina appears well positioned to keep delivering on that front.

In the second quarter, the company’s revenue jumped 20% year-over-year (YoY) to $2.2 billion, driven largely by higher revenue from its marketing & new ventures business. Meanwhile, its quarterly earnings surged 23% YoY to $512 million, supported by stronger contributions from its Facilities and Marketing & New Ventures divisions. The company’s adjusted earnings also climbed 10% to $415 million.

More importantly for dividend investors, Pembina’s adjusted cash flow from operating activities climbed by over 11% YoY to $778 million, or $1.34 per share. This per-share cash flow comfortably exceeded its quarterly dividend of $0.74, although it doesn’t account for all capital spending.

More growth opportunities ahead

And the good news for retirement investors is that Pembina isn’t simply relying on its existing operations to keep the dividend income flowing. In May 2026, the company completed its Redwater expansion on time and under budget, adding 55,000 barrels per day of fractionation capacity. It also approved the $570 million Heartland Extraction Plant, supported by expanded long-term supply agreements with Dow.

Interestingly, Pembina’s newly approved Greenlight Electricity Centre should also generate stable, long-term contracted cash flow by supplying electricity to a Meta data centre. Meanwhile, the Canadian energy infrastructure firm’s Cedar liquefied natural gas (LNG) project continues progressing toward its first exports expected in late 2028.

With the company targeting 5% to 7% annual growth in fee-based adjusted EBITDA per share through 2030, Pembina still has many opportunities to strengthen its future cash generation.

For retirement investors, its attractive quarterly dividends, improving cash flow, and long-term expansion plans make Pembina an appealing stock for earning reliable passive income for years.

The post Money for Nothing: A 4.4% Dividend Stock That Brings Home the Bacon Even When You’re Done Working appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Meta Platforms and Pembina Pipeline. The Motley Fool has a disclosure policy.

I’m one of those investors who thinks dividend income should make retirement planning easier, not leave you wondering how much money will arrive next quarter. That’s why Telus’s (TSX: T) recent decision to slash its dividend by 55% caught my attention, even though I can see why the company made such a difficult decision.

The cut reduced the Canadian telecom giant’s quarterly payout to $0.19 per share, turning what was once roughly $1,674 in yearly income from 1,000 shares into just $750. Adding to Tax-Free Savings Account (TFSA) investors’ concerns, Telus stock has plunged about 50% over the last year, leaving its shareholders facing both a smaller income stream and a big unrealized loss. But I wouldn’t view Telus’s dividend cut as the end of its investment appeal.

Let me explain how I’d evaluate Telus following its dividend cut and why some investors may be better off holding while others should prioritize protecting their TFSA income.

Why Telus reduced its dividend

Before deciding what to do with Telus stock after its recent dividend cut, let’s quickly review what Telus expects to gain from making this painful but potentially necessary move.

While a 55% dividend cut might seem alarming, I believe the company is taking an important step toward building a financially stronger business. The company expects to save about $2.7 billion through 2028 by reducing its shareholder payouts, giving it more room to tackle its debt without abandoning investments in its wireless and fibre networks.

At the same time, Telus aims to bring its net debt-to-adjusted EBITDA ratio down from 3.5 times at the end of the second quarter to 3.0 times or lower by the end of 2028. Interestingly, its second-quarter free cash flow still increased 2% year-over-year (YoY) to $545 million, even as competitive pressures weighed on its earnings. If it can turn these savings into a healthier balance sheet and stronger cash flow, today’s painful dividend reset could eventually help Telus become a more dependable income stock in the years to come.

Should TFSA investors continue holding Telus stock?

For TFSA investors, I think the decision comes down to how much they depend on Telus for income and whether they could afford to wait for a recovery. At its current price of $11.03 per share, this Vancouver-based telecom company has a market cap of $17.5 billion and offers a 6.8% annualized dividend yield. That yield still looks appealing, but it shouldn’t distract investors from the challenges behind the stock’s decline.

In the second quarter, Telus’s revenue from customer contracts fell 2% YoY to $4.9 billion, partly due to lower mobile equipment sales and weaker Telus Digital revenue. The firm’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) slipped 2% to $1.8 billion, while its adjusted earnings declined 27% to $0.16 per share.

Still, I wouldn’t overlook the company’s growth efforts. Its mobile network revenue in the latest quarter rose 1% YoY to $1.7 billion, backed mainly by subscriber growth. Telus is also prioritizing investment in wireless, fibre networks and digital infrastructure. More recently, its successful satellite-to-smartphone integration test with AST SpaceMobile brought it closer to offering coverage in remote areas, with service expected for eligible customers within the next year.

Foolish takeaway

For investors who need predictable TFSA income today, I’d consider diversifying rather than relying heavily on Telus’s smaller dividend. On October 1, the company also eliminated its dividend reinvestment plan discount, although automatic reinvestment remains available. However, investors with a longer horizon may prefer to hold while monitoring debt reduction and cash flow.

Even after its steep decline, Telus could still appeal to patient TFSA investors seeking long-term recovery potential, along with attractive dividend income. But I’d definitely avoid counting on its old dividend returning anytime soon.

The post What the Telus Dividend Cut Means for Your TFSA Income, and What to Do About It appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

A Tax-Free Savings Account (TFSA) gives you a lot of flexibility, but that flexibility can also lead to mistakes. You can withdraw money whenever you want without paying tax, which sounds simple enough. The part Canadians sometimes forget is that you have to wait until the next calendar year to get that withdrawal amount added back to your contribution room limit.

Put the money back too soon without enough available room, and you could create an overcontribution problem. That is one reason I always recommend treating a TFSA as a place for long-term investing instead of constant trading and withdrawals. The longer you remain invested in fundamentally strong businesses, the more time their earnings, dividends, and share-price growth have to compound.

Here are two top Canadian stocks I think are worth holding patiently inside a TFSA.

Brookfield Asset Management

If you want a TFSA holding that combines dividend income with exposure to global growth trends, Brookfield Asset Management (TSX: BAM) is definitely worth taking a closer look.

Headquartered in New York, BAM is a global alternative asset manager with more than US$1 trillion in assets under management across infrastructure, energy, private equity, real estate, and credit. Its stock trades around $66 per share with a market cap of $104.6 billion. It also offers a 4.4% annualized dividend yield at this market price.

BAM’s shares have had a mixed run recently. While it’s down about 21% over the last year, it remains up 5% over the last six months. That weakness makes the stock look undervalued compared with the momentum in Brookfield’s underlying business.

About that: In the second quarter, the asset manager raised a record US$77 billion and deployed US$21 billion. BAM’s fee-related earnings climbed 20% year-over-year (YoY) to US$808 million, while distributable earnings rose 15% YoY to US$707 million. More importantly, fee-bearing capital jumped 19% YoY.

Brookfield has also been building for future growth by completing its acquisition of Oaktree and expanding partnerships tied to artificial intelligence (AI) infrastructure, energy, and private markets.

For TFSA investors who want to keep strong businesses working over the long run, BAM stock’s growth initiatives and 4.4% yield make its recent stock weakness an attractive opportunity.

Canadian Tire

Canadian Tire (TSX: CTC.A) is a smart choice for investors who like the sound of owning an established Canadian business with improving earnings and a steady dividend.

The company owns and operates retailers (such as Mark’s and Party City Canada), gas stations, and commercial properties throughout the country. After gaining 14% in the last year, its shares now trade around $192 per share, giving it a market cap of about $10 billion. The stock also offers a 3.8% annualized dividend yield.

In the June quarter, Canadian Tire’s revenue rose 2.4% YoY, while income before income taxes increased 8.4% to $280 million.

At the same time, there were encouraging signs across its retail banners. For example, SportChek’s comparable sales jumped 8%, while Mark’s comparable sales increased 4.2%. Canadian Tire’s e-commerce sales also grew 14%, showing that its digital channels continue to gain traction.

The company continues to advance its True North strategy through more personalized Triangle credit card loyalty offers, stronger e-commerce capabilities, and refreshed store concepts. Overall, Canadian Tire’s earnings growth, dividend income, and loyalty strategy make it an attractive long-term TFSA hold.

The post The TFSA Withdrawal Rule Every Canadian Should Know appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Asset Management. The Motley Fool has a disclosure policy.

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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• How Much Should You Have Saved for Retirement by 40?

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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• Your GIC Pays 3% to 4%: This TSX Stock Pays You Every Month Instead
• REIT Investing: I’m holding SmartCentres for its 98.1% Occupancy

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.

When building a retirement portfolio, investors should look beyond current income and focus on companies that can support dependable payouts for many years. That means looking beyond the current yield and asking whether the business has durable demand, financial strength, and room to keep investing.

Some of the best answers can come from companies that operate in areas people use every day. While groceries, pharmacies, utilities, and infrastructure may not sound very exciting, they could give a retirement portfolio consistency.

In this article, I’ll highlight two Canadian dividend stocks that could help retirees build income they can rely on for decades.

Metro stock

The first dependable dividend stock worth a closer look is METRO (TSX: MRU), a retailer built around two everyday necessities, food and pharmacy products.

Headquartered in Montréal, METRO operates or services more than 1,000 food stores and about 640 pharmacies across Quebec and Ontario. After slipping 4% over the last year, MRU stock now trades at $90.53 per share with a market cap of roughly $18.9 billion. At that price, it offers a 1.8% annualized dividend yield.

MRU’s mixed performance has come during a challenging operating stretch, as a labour conflict at METRO’s Laval produce distribution centre continued to weigh heavily on its latest results.

Even so, the retailer’s third-quarter sales rose 1.4% year-over-year (YoY) to nearly $7 billion, helped in part by new store openings. At the same time, its pharmacy same-store sales climbed 4.8%, including 6.4% growth in prescription drugs. But the company estimated that the labour conflict reduced its after-tax earnings by about $66 million.

As the company overcomes this short-term challenge, METRO intends to convert 10 Metro stores to the Food Basics banner, close one store and a satellite warehouse, and shift its e-commerce fulfilment model. These moves are expected to generate about $15 million in recurring annual net earnings improvement by the end of fiscal 2028.

For retirees, METRO’s essential retail operations and focus on improving efficiency could make the stock attractive despite the current short-term pressure.

ATCO stock

Another dividend stock that could fit a retirement portfolio very well is ATCO (TSX: ACO.X), especially for retirees who want income backed by essential services and large infrastructure investments.

The Calgary-based company operates across energy, utilities, modular structures, housing, transportation, and defence-related services. After jumping 47% over the last year, ATCO stock currently trades at $73.19 per share with a market cap of about $7.4 billion. It also offers a 2.8% dividend yield at that price.

ATCO posted adjusted earnings of $114 million in the second quarter, up 12.9% YoY. In addition, the company has several projects that could support long-term growth. ATCO Structures has secured contracts across Canada, the United States, and Australia, including workforce housing and modular projects.

Moreover, the company is moving ahead with the roughly $2.9 billion Yellowhead Pipeline after receiving key regulatory approvals. With growing adjusted earnings, regulated utility exposure, and major infrastructure opportunities, ATCO looks like another attractive dividend stock for retirees that could deliver dependable income for decades.

The post 2 Dividend Stocks Retirees Can Count on for Decades appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar 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.