A monthly dividend inside your Tax-Free Savings Account (TFSA) can make investing feel less like waiting and more like getting paid. But the catch is that the company still needs to earn enough cash to keep those payments coming. That is why I find Diversified Royalty (TSX:DIV) interesting.

Its monthly income is not tied to one restaurant chain, one service business, or one consumer trend. It comes from a collection of brands that includes automotive services, education, home care, cleaning, restaurants, and real estate. The company has also moved beyond simply owning royalty streams by acquiring the Mr. Lube + Tires franchisor business in Canada. That shift gives it another path to grow in the long run.

In this article, let’s unpack why this monthly dividend stock could be a great addition to your TFSA this July.

A diversified monthly income stock to buy in July

To put it simply, Diversified Royalty acquires royalty streams from well-established multi-location businesses and franchisors across North America. As the name suggests, its diversified portfolio includes brands such as Mr. Lube + Tires, AIR MILES, BarBurrito, Oxford Learning Centres, Nurse Next Door, and Stratus Building Solutions. Rather than depending on one industry, the company earns royalties from businesses operating across several sectors, helping diversify its cash flow.

DIV stock currently trades at $4.62 per share with a market cap of about $866 million. Even after climbing roughly 24% so far in 2026 and more than 41% over the last year, it still offers an attractive annualized dividend yield of about 6.2% through monthly payouts.

While its shares have pulled back slightly over the last month, they remain only about 7% below their 52-week high.

Growth supporting the dividend

In the first quarter of 2026, Diversified Royalty’s adjusted revenue jumped 11% year-over-year (YoY) to $18.8 million, driven by growth at Mr. Lube + Tires and Oxford Learning Centres, higher AIR MILES royalties, and contributions from BarBurrito and Cheba Hut.

At the same time, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) also rose 11.2% YoY to $17.7 million, while the company’s trailing 12-month adjusted EBITDA has grown more than 14%. Last quarter, Diversified Royalty’s distributable cash, an important measure for dividend investors, also climbed 10.4% YoY to $12 million.

However, its adjusted net profit declined 5.4% from a year ago to $7.6 million, as higher administrative, financing, interest, and share-based compensation costs weighed on earnings despite stronger revenue.

More growth could still be ahead

In April, Diversified Royalty acquired an additional annualized royalty from Cheba Hut worth US$0.9 million. Earlier in March, it expanded the BarBurrito royalty pool by adding nine eligible restaurants. The company also completed its acquisition of the Mr. Lube + Tires franchisor business in June, giving it direct exposure to one of Canada’s largest automotive service franchise networks while creating another long-term growth opportunity.

More recently, Diversified Royalty completed a $57.5 million bought-deal financing. The firm plans to use these proceeds primarily to repay acquisition-related debt tied to the Mr. Lube + Tires purchase while also supporting general corporate purposes. Lower debt could give it additional financial flexibility as the company continues expanding.

Overall, a diversified royalty portfolio, growing cash flow, and a monthly dividend yielding about 6.2% make Diversified Royalty an attractive Canadian stock for TFSA investors seeking dependable income and long-term growth potential.

The post Create the Perfect July TFSA with a 6.2% Monthly Payout 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.

Investing in Canadian monthly dividend stocks feels a little more rewarding to me. Instead of waiting every quarter for cash to arrive, we get paid more often, which could be useful for income planning or simple reinvestment. That is why I keep looking for a monthly-paying stock with a solid yield for my portfolio, especially when the business also has steady cash flow and clear growth plans.

Chemtrade Logistics Income Fund (TSX:CHE.UN) is a good example of such a monthly-payer right now. While it may not be a very popular stock on the TSX today, its 4.3% dividend yield, recent share price strength, and capital-return focus make it interesting.

In this article, I’ll talk about why Chemtrade could appeal to many Foolish investors seeking monthly income and long-term value.

A monthly dividend stock worth a closer look

The monthly payout is only one factor that makes Chemtrade one of my favourite monthly dividend stocks, as the business behind the payout looks solid as well. If you don’t know it already, the company mainly provides industrial chemicals and services to customers across North America and is also a leading producer of high-purity sulphuric acid for the semiconductor industry. Its operations span acid and sulphur products, water solutions, and electrochemicals, giving it exposure to several essential industrial markets.

Chemtrade stock currently trades at $16.85 per share with a market cap of about $1.9 billion. Besides offering a 4.3% annualized dividend yield with monthly distributions, this stock has also rewarded shareholders with solid capital gains. The stock has risen about 14% year to date and nearly 49% over the last year.

What has been driving the business

The recent momentum in this monthly-paying TSX stock has been supported by steady business execution despite some market challenges. In the first quarter of 2026, Chemtrade’s revenue climbed nearly 8% year-over-year (YoY) to $503 million. This increase was mainly driven by the Polytec acquisition in its Water Solutions business, along with higher selling prices for merchant acid, sulphur products, and Regen acid in its Acid and Sulphur Products segment.

However, the company’s adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) fell 5.5% YoY to $113.5 million. Lower selling prices and volumes for chlor-alkali products and sodium chlorate weighed on results in the Electrochemicals segment. Nevertheless, its operating cash flow jumped 23.3% from a year ago to $42.4 million with the help of lower working capital requirements. That cash generation continues to support its monthly distributions.

Why it remains an attractive monthly dividend stock

During the first quarter, Chemtrade increased its monthly distribution by about 4% to $0.06 per unit, or $0.72 annually. More importantly, its payout ratio remained at a manageable 51% for the quarter and 38% over the last 12 months.

In addition, the company strengthened its balance sheet by redeeming all of its remaining convertible debentures by the end of June. This move is expected to simplify its capital structure by removing dilutive securities while increasing its focus on returning capital to shareholders.

Moreover, despite ongoing volatility in some chemical markets, Chemtrade reaffirmed its 2026 adjusted EBITDA guidance of $485 million to $525 million. It also continues to invest in water solutions projects and other organic growth initiatives under its Vision 2030 strategy, which targets an annual adjusted EBITDA of $550 million to $600 million by 2030.

Given these positive factors, Chemtrade looks like a solid choice for investors looking for a monthly-paying TSX stock with a reliable income stream and long-term growth potential.

The post A Monthly-Paying TSX Stock With a 4.3% Dividend Yield 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.

A 10% yield is usually enough to make me take a closer look at a dividend stock’s fundamentals. Not because I expect easy money, but because yields that high almost always come with a catch. Sometimes it’s a struggling business. Sometimes it’s a dividend that’s living on borrowed time.

Sometimes the market’s view of a company is much more negative than its underlying business performance. That’s why Timbercreek Financial (TSX:TF) recently caught my attention. The stock has been under pressure, yet the business continues to generate cash and grow where it matters. Let’s see whether this monthly payer is worth a closer look.

The mortgage book is moving in the right direction

Currently, TF stock trades at $6.50 per share with a market cap of $538 million. The stock price has dived by nearly 15% over the last year, which has raised its annualized dividend yield to 10.6%, paid monthly. This yield makes this stock tough to ignore for investors like me who care more about income than short-term price momentum.

What keeps me interested is that the business is not slowing down even as investor sentiment remains cautious. In the first quarter, Timbercreek advanced $224.2 million in new and existing net mortgages, lifting its net mortgage portfolio to $1.2 billion. That was up around 15% year-over-year (YoY) with the help of stronger origination activity and continued progress in resolving older staged loans.

The company has also been redeploying capital into higher-quality, income-producing real estate loans, with a clear focus on multi-residential opportunities. That move supports portfolio growth and underwriting discipline at a time when commercial real estate lenders still need to stay selective.

The cash flow picture is still doing the heavy lifting

In the latest quarter, Timbercreek’s income came in at $25.1 million, while distributable income reached $14.5 million. Its net income and comprehensive income were $0.13 per share, and the company still declared $14.3 million of dividends, or $0.17 per share.

Those numbers were not flawless. Timbercreek paid out almost all of its distributable income as dividends, and its dividend was higher than its reported earnings for the quarter. The company also recorded $3.7 million in expected credit losses after selling two troubled office and retail mortgages. Even so, the dividend is still being backed by the cash the business generates, which is what income investors really want to see.

The average interest rate across its mortgage portfolio in the March quarter also slipped to 7.7% from 8.7% a year ago as older, higher-rate loans matured and interest rates declined. Still, nearly 90% of its loans have variable rates with minimum rate protections, helping cushion the impact if borrowing conditions remain uncertain.

Why this stock still looks attractive

At the end of the March quarter, Timbercreek’s multi-residential loans represented 59.7% of its portfolio, while retail, industrial, office, and improved land made up much smaller slices. That tilt toward income-producing assets should matter because it gives the company exposure to property types that could still generate cash flow in a choppier market.

For an income stock with a 10.6% yield, that mix of portfolio growth and active capital recycling is encouraging. While I won’t call Timbercreek stock risk-free, I still think Timbercreek stock remains a smart monthly income pick right now, especially for investors who want monthly cash flow. If its origination momentum holds, today’s payout could look even more compelling in the years ahead.

The post A 10% Dividend Stock Paying Cash Every Month 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.

Most investors dream about reaching the point where their portfolio starts paying them instead of the other way around. Imagine opening your brokerage account and seeing cash arrive every month without selling a single share. It won’t replace a salary overnight, but over time, those payments can help cover bills, fund new investments, or simply give you more financial flexibility.

The catch is that dependable passive income isn’t just about chasing the highest dividend yield you can find. Some payouts disappear just as quickly as they appear. I’d rather own businesses with strong fundamentals, steady cash flow, and management teams that could keep increasing distributions even when the economy hits a rough patch.

In this article, I’ll talk about two of my favourite monthly income stocks and explain why I think they deserve a place in an income-focused portfolio.

CT Real Estate Investment Trust stock

If steady income is the goal, CT Real Estate Investment Trust (TSX:CRT.UN) is a sensible place to start. The real estate investment trust (REIT) owns a portfolio anchored mainly by Canadian Tire properties, which gives it a durable source of rent and makes its cash flow easier to trust.

At the time of writing, CT stock traded at $18.64 per unit with a market cap of $2.1 billion. It has climbed nearly 18% over the last year and still offers an attractive dividend yield of 5.1%, paid monthly. That mix of price momentum and income is hard to ignore.

CT REIT’s latest quarter backed up that appeal as its property revenue rose 4.8% year-over-year (YoY) in the first quarter to $157.6 million, while net operating income (NOI) climbed 4.7% to $124.3 million. Similarly, the trust’s same-store NOI grew 1.2% YoY, and same-property NOI was up 2.3%. As a result, its net income reached $115.7 million, and the REIT lifted its monthly distribution 3.5% from a year ago to $0.08 per unit, or $0.98 annually.

Meanwhile, CT’s cash generation remains solid too. In the latest quarter, the REIT’s adjusted funds from operations (AFFO) rose 3.5% YoY to $78.1 million. With the AFFO payout ratio steady at 72.5%, its dividend distribution still looks well supported.

That blend of reliable rent, disciplined expansion, and regular distribution growth is what makes CT REIT an attractive monthly dividend stock to buy right now.

Dream Industrial REIT stock

The second stock that can help strengthen a monthly passive income stream is Dream Industrial Real Estate Investment Trust (TSX:DIR.UN). This REIT owns warehouses and logistics properties across Canada, Europe, and the United States, giving it exposure to key real estate markets for e-commerce and supply chains.

Following a 23% rally in the last year, its stock recently traded at $14.52 per unit with a market cap of $4.1 billion. At this market price, the REIT yields 4.9%, paid monthly.

In the March quarter, the company’s comparative properties net operating income jumped 9% YoY to $99.6 million, while net rental income rose 6.6% to $97.8 million. At the same time, occupancy stayed strong, with the wholly owned Canadian portfolio at 96.8% and the European portfolio at 95%.

Dream Industrial has also been actively reshaping the portfolio. It completed $453 million in dispositions during the quarter, closed $150 million of acquisitions since the start of 2026, and kept its development pipeline moving.

With $604.9 million of available liquidity, including $35.9 million in cash and $250 million under its accordion facility, Dream Industrial REIT still has plenty of financial flexibility, making it the top monthly income stock to buy.

The post My 2 Favourite Stocks for Monthly Passive Income 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 Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

If you want to build a reliable passive income source, you may want to consider investing in monthly-paying dividend stocks on the Toronto Stock Exchange. Instead of waiting three months between distributions, these dividend stocks reward investors with a regular stream of cash that could be reinvested or spent right away.

For investors looking for such monthly payers today, Nexus Industrial REIT (TSX:NXR.UN) looks worth a closer look. This Oakville-based real estate investment trust (REIT) owns industrial properties across Canada, pays cash every month, and operates in a real estate niche that has held up well.

Let me give you some more reasons why I think this monthly-paying Canadian stock deserves a spot on your radar.

A resilient industrial landlord with monthly dividends

If you have not followed it before, Nexus mainly focuses on warehouses and other industrial properties in primary and secondary Canadian markets. That gives it exposure to a part of the market that continues benefiting from demand tied to logistics, storage, and distribution.

Its stock currently trades at $8.14 per unit, giving the trust a market cap of about $800 million. The stock has climbed roughly 8% in the last three months and offers a monthly distribution that works out to an attractive dividend yield of about 7.8%.

Strong occupancy and strengthening leasing activity

Even as many real estate companies continue to struggle due to macroeconomic challenges, Nexus started 2026 on a solid note. In the first quarter, its net income came in at $32.2 million while net operating income (NOI) rose 5.4% year-over-year (YoY) to $33.8 million. The REIT’s occupancy stayed healthy at 95%, showing that tenant demand remains firm even after portfolio sales over the last year.

Similarly, leasing activity added more fuel to its growth story. During the quarter, Nexus completed 41,177 square feet of leasing at an average spread of 32% above expiring rents. This pricing power is exactly what I love to see from an industrial landlord.

A healthier balance sheet helps

Interestingly, the REIT has increased its focus on strengthening its financial base in recent quarters. In April, it completed an inaugural $500 million bond issuance that generated net proceeds of $498.5 million. The trust used that capital to retire a $200 million unsecured term loan and reduce borrowings on its revolving credit facility.

That move should improve flexibility. In addition, Nexus ended the first quarter with a total indebtedness ratio of 49.5% and a debt service coverage ratio of 1.7 times, leaving it in a healthy position to keep funding growth while protecting the payout.

Meanwhile, its management has also kept refining the portfolio as it sold an industrial property in Calgary for $8.5 million and now owns 88 properties with 12.3 million square feet of gross leasable area.

Growth projects add upside

Beyond the current yield, Nexus still has catalysts that could strengthen the growth in the years to come. The company expects mid-single-digit same-property NOI growth in its industrial portfolio this year, helped by lease-up activity and market-rate renewals.

At the same time, its development pipeline looks promising. A 325,000-square-foot expansion in St. Thomas is expected to add $4.9 million in annual NOI at a 9% yield, while a 115,000-square-foot Calgary project is expected to deliver an 11% yield. On top of that, its Montreal and Longueuil acquisitions added 282,721 square feet and about $2.6 million in annual NOI.

Put it all together, and it’s easy to see why Nexus looks attractive despite its high yield. It offers monthly income, improving cash flow coverage, and projects that could help its earnings and share price keep moving higher.

The post A Monthly-Paying TSX Stock With a 7.8% Dividend Yield Worth Adding to Your Radar 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 Nexus Industrial REIT. The Motley Fool has a disclosure policy.

Unused Tax-Free Savings Account (TFSA) room could feel like a missed opportunity if it is just sitting in cash. But with the right monthly-paying dividend stocks, that contribution room can start working as a tax-free income source. For investors who want steady cash flow without giving up long-term growth potential, Canada’s real estate investment trusts (REITs) remain especially attractive because most of them distribute income every month.

In this article, I’ll highlight two top Canadian REITs that stand out for investors who want to build reliable TFSA cash flow while staying focused on quality assets.

SmartCentres REIT stock

While the retail real estate segment may not sound super exciting at first, I still find SmartCentres Real Estate Investment Trust (TSX:SRU.UN) appealing as it has built a strong business around essential properties, high occupancy, and a growing development pipeline. The trust owns and manages shopping centres, office buildings, rental residences, self-storage assets, and industrial facilities across Canada.

After rallying by 17% in the last 12 months, SmartCentres stock now trades at $30.39 per share with a market cap of $4.4 billion. Despite these gains, it offers a juicy 6.1% dividend yield with monthly distributions.

At the end of the March 2026 quarter, the REIT registered a 97.6% occupancy rate, helped by resilient retail demand and development momentum. During the quarter, its same-property net operating income (NOI) rose 1.4% year-over-year (YoY) with the help of lease renewals and stronger self-storage occupancy. As a result, SmartCentres reported quarterly NOI of $137.7 million, and funds from operations (FFO) of $0.54 per share.

The trust also has eight active projects representing about 1.7 million square feet of gross floor area. That includes a 200,000-square-foot Toronto retail building pre-leased to Canadian Tire and self-storage projects in Montreal and Laval.

Overall, its high monthly yield, resilient occupancy, and expanding development pipeline make SmartCentres an attractive monthly dividend stock for TFSA investors looking to generate reliable tax-free income.

Granite REIT stock

Granite Real Estate Investment Trust (TSX:GRT.UN) looks just as compelling, especially for investors who prefer industrial property exposure. It mainly focuses on logistics, warehouse, and industrial properties across North America and Europe, giving it direct exposure to supply-chain demand, e-commerce, and high-quality distribution space. It currently owns 145 investment properties with about 61.5 million square feet of gross leasable area.

Following a 37% jump over the last year, Granite REIT stock trades at $97.20 per share with a market cap of about $5.9 billion. At this market price, it has a dividend yield of around 3.6%, with distributions paid monthly.

Despite macroeconomic uncertainties, Granite continues to deliver solid operating performance. In the first quarter of 2026, its NOI rose 6.8% YoY to $134.2 million, while FFO climbed to $95.8 million. This growth was largely driven by new and renewed leases, contractual rent increases, and contributions from properties acquired in 2025.

The REIT also maintained a strong 97.5% occupancy rate at the end of March, with committed occupancy improving to 98.3% in early May. During the quarter, Granite achieved average rental rate spreads of 23% on about 1.1 million square feet of lease renewals and new leases, highlighting the continued demand for its industrial properties.

Combined with its investment-grade balance sheet and unchanged 2026 guidance, these trends clearly show Granite’s position as a reliable long-term income and growth investment.

The post A Practical Way to Use Your TFSA Contribution Room to Build Monthly Cash Flow 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 Granite Real Estate Investment Trust and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Many investors use a Tax-Free Savings Account (TFSA) to build wealth while keeping future income sheltered from tax. While growth matters, regular cash flow could make your TFSA feel more productive, especially when that income arrives every month.

That is why monthly-paying dividend stocks are my favourites. But when you look for a stock to invest in, you may want to look beyond a high yield, as the underlying business also needs to hold up through changing market conditions.

Keeping that in mind, one stock that looks appealing for July is Choice Properties Real Estate Investment Trust (TSX:CHP.UN). The trust owns a large portfolio of necessity-based retail, industrial, mixed-use, and residential properties across Canada.

Let’s look at why this monthly payer could deserve a place on a TFSA income portfolio.

A monthly payer for TFSA income

If you don’t know it already, Choice Properties is one of Canada’s largest diversified real estate investment trusts (REITs), with around 700 income-producing properties and nearly 68 million square feet of gross leasable area. Its retail portfolio is heavily tied to grocery-anchored locations, while its industrial properties serve key distribution markets.

Choice Properties stock has climbed by 17% over the last 11 months, despite macroeconomic uncertainties. As a result, the stock currently trades at $16.54 per share with a market capitalization of $5.4 billion. More importantly for income-focused investors, its monthly distribution currently offers an annualized yield of about 4.7%.

Steady operating momentum

In the first quarter (ended in March), Choice Properties posted a net loss of $87.2 million, which was better than the $96.2 million loss in the same quarter of the previous year. The improvement came from favourable non-cash fair value changes, including a $49 million positive adjustment to investment properties and a $19.8 million favourable change tied to its exchangeable units.

During the quarter, its funds from operations (FFO) rose 2.7% year-over-year (YoY) to $0.27 per unit. Excluding lease surrender revenue and the lower distribution from Allied Properties REIT, Choice’s FFO per unit climbed 3.5% from a year ago due mainly to higher net operating income (NOI) and lease surrender revenue.

The REIT’s property-level results also continue to show strength. In the latest quarter, its same-asset NOI on a cash basis grew 3% YoY, while total NOI rose 4.2%. Meanwhile, occupancy remained strong at 98.1% across its retail, industrial, mixed-use, and residential portfolio.

Growth plans beyond the payout

Choice Properties is also working on a major acquisition that could expand its long-term earnings base. The trust has agreed to acquire high-quality urban retail assets from First Capital REIT and KingSett Capital. This transaction is valued at about $9.4 billion, with Choice Properties acquiring about $5 billion of First Capital’s assets.

Moreover, the REIT is now focused on preserving capital, growing stable cash flows, and increasing net asset value. For 2026, the trust is targeting stable occupancy and 2%–3% YoY growth in its same-asset NOI on a cash basis. It also expects annual FFO of $1.08 to $1.10 per unit.

Foolish takeaway

Choice Properties offers a powerful mix of monthly income, high occupancy, and exposure to Canadian real estate assets that serve everyday needs. Its 4.7% yield may not be the highest on the Toronto Stock Exchange, but a great mix of dependable rent collection and improving FFO makes it a solid TFSA stock for investors who want monthly income without chasing risky payouts.

The post An Ideal TFSA Stock for July, Paying 4.7% Each Month 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 First Capital Real Estate Investment Trust. The Motley Fool has a disclosure policy.

A monthly dividend is always appealing, especially if you’re looking to build a reliable stream of passive income. Still, the quality of the business matters just as much as the size of the payout. That’s why I prefer looking at how a company makes its money rather than focusing only on the dividend yield. If the underlying stock is strong, the income becomes much more meaningful.

Freehold Royalties (TSX:FRU) is a good example of such a stock. Unlike most traditional oil and gas producers, Freehold doesn’t drill wells itself. Instead, it owns royalty interests across Canada and the United States, earning royalties when other companies produce oil and gas on its lands. That capital-light approach has helped the company consistently return cash to shareholders while benefiting from energy production across some of North America’s most active regions.

In this article, I’ll tell you why this monthly dividend stock deserves a closer look, how its royalty-based business model generates steady cash flow, and whether its 6.7% yield appears sustainable.

A high monthly yield

Despite the commodity market volatility, Freehold stock has risen 25% over the last year, reflecting investor confidence in the company’s business model. With this, the stock now trades at $15.99 per share, giving it a market cap of roughly $2.6 billion.

At today’s share price, it offers an annualized dividend yield of about 6.7%, with dividends paid every month. The company currently distributes $0.09 per share each month, making it an attractive choice for investors who value consistent income.

The dividend also continues to be supported by Freehold’s business. In the first quarter of 2026, Freehold reported a dividend payout ratio of 75%, allowing it to reward shareholders while still retaining cash to strengthen and expand its portfolio.

A business model built for income

Currently, Freehold owns royalty interests covering about 6.1 million gross acres in Canada and another 1.2 million gross drilling acres in the United States. Its U.S. assets include premium producing regions such as the Permian Basin, Eagle Ford, Haynesville, and Bakken, giving the company exposure to some of North America’s most productive energy plays.

Because Freehold doesn’t have to fund drilling programs itself, it can generate strong cash flow without the same capital requirements and other challenges faced by traditional energy companies. As production grows on its royalty lands, the company benefits while keeping its own operating costs relatively low.

That model continued to deliver solid results in the first quarter of 2026. Freehold generated $78 million in quarterly revenue and $59 million in funds from operations (FFO), with crude oil and natural gas liquids accounting for roughly 90% of total revenue.

The company also continued investing in future growth, acquiring $19 million of royalty interests in the Permian Basin during the quarter. The acquisition further strengthened its exposure to one of the continent’s most active and profitable oil-producing regions.

Positioned for long-term income

Freehold’s diversified portfolio gives it exposure to hundreds of operators across Canada and the United States, helping create a broad base of royalty income rather than relying on a single project or producer.

The company also expects its production to strengthen through the second half of 2026 as drilling activity and well completions increase, while its liquids-focused asset base continues to support meaningful cash flow generation.

For income investors, its diversified royalty portfolio, disciplined capital allocation, and monthly dividend payments could make Freehold an attractive holding for long-term income investors.

The post A 6.7% Dividend Stock That Pays Cash Every Month 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 Freehold Royalties. The Motley Fool has a disclosure policy.

Ask most income investors what they enjoy most about dividend investing, and many won’t mention the yield first. They’ll talk about consistency. In addition, if the dividend income is received every month, it makes a Tax-Free Savings Account (TFSA) feel more tangible. Instead of waiting for a once-a-quarter payment, investors see cash arrive every month, which could be reinvested or saved for future opportunities without triggering tax on the income.

That is why a well-run real estate investment trust (REIT) could be appealing inside a TFSA. The right trust gives investors exposure to hard assets, recurring rental income, and steady distributions. For example, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) has worked to build exactly that kind of business, pairing a large portfolio of Canadian real estate with a distribution yield that’s difficult to ignore.

In this article, I’ll discuss why SmartCentres stock stands out as a solid TFSA stock offering both an attractive dividend yield and the appeal of monthly paycheques.

A retail REIT with familiar assets

If you don’t know it already, SmartCentres REIT develops, leases, owns, and manages shopping centres, office buildings, rental residences, and industrial properties across Canada. Its portfolio includes about 200 strategically located properties, giving the trust a broad footprint in the Canadian real estate sector.

After climbing by 18.4% in the last year, SmartCentres stock currently trades at $30.31 per share with a market cap of about $4.4 billion. With this, it’s trading just 2% below its 52-week high. At this market price, the stock also offers an attractive dividend yield of 6.1%, paid on a monthly basis.

That price strength matters because many REITs have struggled with higher borrowing costs and investor caution in recent years. However, SmartCentres has still managed to move higher, suggesting the market continues to see value in its property base and monthly distribution.

Recent results point to steady demand

Retail demand remains strong across SmartCentres REIT’s portfolio. In the first quarter of 2026, its lease extensions were completed with average rent growth of 11.5% year-over-year (YoY), excluding anchors, as the trust continued focusing on value-oriented retail and higher-quality tenants.

This is an important distinction. Retail real estate is cyclical, but properties tied to everyday shopping needs tend to be more resilient than destination malls or weaker locations. That could support occupancy and recurring rental income.

Meanwhile, the REIT continues to focus on development as many of its new retail projects are underway in Kingston, Lindsay, and Winnipeg.  Similarly, it’s constructing a 200,000-square-foot retail building pre-leased to Canadian Tire in Toronto.

A growth plan beyond retail

Financially, SmartCentres reported net operating income of $137.7 million for the first quarter, up 0.7% YoY. The company’s funds from operations (FFO) were $0.54 per share, while adjusted FFO per unit was $0.52, as higher base rent helped offset rising interest and administrative costs.

The trust is also working on larger mixed-use opportunities. Its ArtWalk condo Tower A in the Vaughan Metropolitan Centre is nearly 93% pre-sold, with 340 units, highlighting demand for its residential pipeline.

At the same time, the REIT has simplified the business by settling legacy earn-out arrangements, terminating mezzanine loans, and consolidating certain fees paid to Penguin. Those steps should improve its cash flow visibility and make its structure easier for investors to understand.

For TFSA investors, a simpler structure could be useful because it gives more visibility to cash flow. If SmartCentres REIT keeps improving that visibility while prudently advancing development projects, its share price could deliver solid returns on investment.

The post The Perfect TFSA Stock: A 6.1% Yield with Monthly Paycheques 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 SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Monthly income can make dividend investing feel a lot more practical. Instead of waiting for quarterly cheques, investors can receive cash more often and use it to cover expenses, reinvest, or simply maintain a productive portfolio.

That’s the reason why I find monthly dividend stocks appealing, especially for Canadians trying to turn savings into a consistent stream of passive income. But when a stock has a double-digit dividend yield, it’s important to carefully look at its fundamentals. A high payout is only attractive if it is backed by stable cash flow, a sound balance sheet, and a business model capable of generating consistent earnings.

Timbercreek Financial (TSX:TF) currently offers a 10.6% yield with monthly payouts, making it stand out for income investors. However, could this Toronto-based commercial mortgage lender actually sustain that level of income over the long term? Let’s look at what supports Timbercreek Financial’s payout and why I believe it could continue rewarding shareholders.

A monthly payer with a high yield

Timbercreek Financial is not a traditional bank. Instead, it provides structured financing to commercial real estate borrowers, often in areas not fully served by larger lenders. Its portfolio is tied mainly to multi-residential, retail, and office properties.

As of June 30, TF stock traded at $6.54 per share, giving the company a market cap of about $541 million. Its shares slipped 14% over the last year, which helps explain why its yield looks unusually high today.

Portfolio recycling remains the key story

In 2026, the company’s financial trends are being shaped by its efforts to resolve legacy staged loans and redeploy capital into higher-quality, income-producing investments. That process is expected to continue through the year and remains central to its earnings outlook.

Timbercreek advanced $224.2 million in new and existing net mortgages in the first quarter of 2026. That helped lift its net mortgage portfolio by 14.9% year-over-year (YoY) to $1.2 billion. If that capital continues moving into better loans, the portfolio could gradually become cleaner and more productive.

The payout deserves a close watch

Although Timbercreek’s monthly dividend is the main attraction, investors should keep an eye on dividend coverage. In the latest quarter, the company generated net investment income of $25.1 million, down from $28.6 million a year ago. At the same time, its distributable income fell slightly to $0.18 per share, compared with $0.19 per share last year.

Timbercreek declared $14.3 million in dividends for the quarter, or $0.17 per share, resulting in a distributable income payout ratio of 98.5%. Meanwhile, the company’s weighted average interest rate moderated to 7.7%, while variable-rate loans with rate floors still represented 88.4% of the portfolio.

I expect that lower funding costs, continued portfolio improvements, and the gradual deployment of capital into higher-quality mortgages could strengthen Timbercreek’s earnings over time. While its dividend payout ratio remains elevated, there are signs that management is steering the business in the right direction.

Is this monthly dividend stock worth buying?

Timbercreek Financial may not be the right fit for every investor, but it offers an attractive combination of an over-10% dividend yield and monthly income. As the company continues resolving legacy loans and expanding its higher-quality mortgage portfolio, its earnings profile could gradually improve. For income investors who don’t mind taking on a bit more risk, Timbercreek Financial could be a strong monthly dividend stock to own, as its high yield comes with higher risk but also the potential for bigger rewards.

The post 10.6% Yield: A Monthly-Paying Dividend Stock Canadians Should Watch 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.