The top Canadian dividend-paying stocks are reliable investments for starting a worry-free passive-income stream. For instance, leading utility companies in Canada, such as Canadian Utilities and Fortis, have been known for consistently paying and increasing their distributions for more than 50 consecutive years. Meanwhile, energy giants like Enbridge and Canadian Natural Resources have been consistently increasing their dividends for multiple decades.
While these Canadian stocks are a no-brainer for income investors, they offer quarterly payouts. Here, I’ll focus on a fundamentally strong stock that pays a monthly dividend. In addition, it offers an attractive yield, making it a solid stock for earning $124 in monthly passive income with a $20,000 investment.
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Top monthly passive-income stock
The TSX has several stocks that offer monthly distributions. Among the leading companies, SmartCentres REIT (TSX:SRU.UN) stands out for its solid dividend payment history, dependable payouts, and high yield.
It’s worth noting that this REIT owns and operates a diverse portfolio of 195 mixed-use properties, including retail shopping centres. A key feature of its portfolio is the significant presence of grocery-anchored shopping centres. These properties add stability to its operations, as grocery stores remain resilient even during challenging economic times. Thanks to its resilient portfolio, SmartCentres generates solid net operating income (NOI) and witnesses a high demand for its real estate in all market conditions.
Currently, SmartCentres pays a monthly dividend of $0.154 per share, equating to a compelling yield of about 7.5% based on its recent closing price of $24.69 (as of December 23, 2024).
SmartCentres to enhance shareholder value
SmartCentres REIT is a compelling investment for investors seeking consistent and reliable income. The solid performance of its core retail business, backed by a high occupancy rate and ongoing contributions from its mixed-use development projects, lays a strong foundation for growing its net operating income. This growth is expected to drive its monthly dividend payouts.
The REIT’s portfolio of high-quality, high-traffic, value-oriented centres continues to see strong demand. An increasing number of new tenants, combined with a solid mix of existing tenants, enhances cash flow and drives even higher occupancy rates. Notably, SmartCentres’s occupancy rate reached an impressive 98.5% by the end of the third quarter (Q3) of 2024. In addition, rental growth and robust cash collections further bolster its financial performance.
The momentum in SmartCentres’s leasing activity reflects the strength of its tenant mix and market positioning. New tenant demand and favourable renewal rates suggest that the company’s NOI will continue to grow in the coming quarters, reinforcing its ability to deliver stable and attractive dividends.
Beyond its retail portfolio, SmartCentres is actively diversifying its revenue streams through its mixed-use development strategy. By integrating residential, self-storage, and industrial formats, the company is broadening its income base while enhancing long-term growth prospects.
SmartCentres also benefits from several strategic advantages, including long-term contracts with retail tenants, a high retention rate, and a vast land bank, which provides significant opportunities for future growth and will likely drive its payouts.
The bottom line
SmartCentres’s resilient real estate portfolio, continued demand, strong renewal trends, solid cash collection, and high occupancy rate position it well to enhance its shareholders’ value through regular monthly payouts.
The table below illustrates how a $20,000 investment can help you buy 810 SmartCentres stock to generate a reliable income stream of over $124 per month.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| SmartCentres REIT | $24.69 | 810 | $0.154 | $124.74 | Monthly |
