The top Canadian dividend stocks have long been a reliable source of steady passive income, even during market volatility. For example, companies like Bank of Montreal, Scotiabank, and Toronto-Dominion Bank have been paying dividends for over a century, demonstrating their resilience and commitment to shareholders.
Further, stocks such as Fortis, Enbridge, and Canadian Natural Resources have consistently increased their dividends for decades, earning their place among the top investments for income-focused investors.
While these fundamentally strong Canadian companies are famous for their decades-long dividend payment and growth history, there are other compelling opportunities for income investors to consider. One among them is a stock that pays consistent dividends and does so monthly, providing a regular income stream.
Further, it offers a high yield of over 7%. This means that a $10,000 investment in this monthly dividend stock could yield $752 annually in passive income.
A top Canadian stock for monthly passive income
Canadian investors seeking reliable passive income can consider buying shares of SmartCentres Real Estate Investment Trust (TSX.SRUUN). This real estate investment trust (REIT) is well-known for its stable monthly payouts. Further, it offers a high and sustainable yield.
SmartCentres owns and operates a high-quality retail and mixed-use portfolio that provides stability and growth across all market cycles. This REIT currently offers a monthly dividend of $0.154 per share, reflecting a yield of 7.5% based on its recent price of $24.55.
With this background, let’s look at factors to understand why SmartCentres REIT is a dependable monthly income stock.
Why rely on SmartCentres REIT
SmartCentres is an ideal investment for investors seeking recurring passive income. The REIT’s high-quality real estate portfolio, primarily comprising high-traffic centres, consistently drives its net operating income and cash flows to support its distributions.
Notably, the REIT’s focus on retail properties adds stability to its financials and drives occupancy rates. On the other hand, the development of mixed-use properties will likely accelerate its growth rate.
Thanks to the strong momentum in tenant demand, SmartCentres’ occupancy stood at an impressive 98.2% in the second quarter (Q2) of 2024. Further, the demand for existing and new build space continues to grow, providing a solid base for future growth. It’s worth noting that SmartCentres extended over 86% of its leases maturing in 2024 with higher rents. Moreover, the REIT re-leased its vacant industrial space above the prior rent. These developments reflect high demand for its properties and continued growth.
The REIT expects continued stability and strong occupancy across its retail portfolio. Moreover, the growth of its mixed-use initiatives and a significant underutilized landbank will continue to generate resilient income and grow funds from operations (FFO) to support its monthly distributions.
Earn $752 in Passive Income
In summary, SmartCentres’ high-quality properties, strong leasing demand, high occupancy rates, top tenant base, and solid development pipeline provide a strong base for future growth and consistent dividend payments.
With an investment of $10,000, investors can acquire approximately 407 shares of this REIT near the current market price. This investment could yield about $62.68 in monthly cash flow, totalling around $752.16 annually in passive income, as detailed in the table provided.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $24.55 | 407 | $0.154 | $62.68 | Monthly |
