Property · Union Post UK
The TSX has relatively few stocks that pay monthly dividends, and finding reliable companies among them can be challenging. One name that stands out is SmartCentres REIT ( TSX: SRU.UN ), which I consider the best monthly dividend stock on the TSX right now. SmartCentres REIT appeals because of its history of consistent dividend payments across different market conditions, along with its attractive yield.
For investors looking for monthly income, these factors matter. Source: Getty Images Why SmartCentres REIT deserves attention from monthly income investors SmartCentres REIT is worth considering for investors looking for a steady stream of monthly income. One of its biggest strengths is its portfolio of high-quality properties, which generates solid rental revenue.
Retail properties make up the bulk of SmartCentres REIT’s portfolio, but the trust also has investments in residential developments, self-storage, office, and industrial properties. This mix gives it exposure to different areas of the real estate market. The REIT benefits from its strategically located properties with strong consumer traffic, making them attractive to established retailers.
These locations help SmartCentres REIT retain tenants, maintain healthy occupancy levels, and negotiate lease renewals at better rental rates. Over time, these advantages support rental income and net operating income (NOI), both of which play an important role in funding its monthly distributions. Its tenant base is another reason why SmartCentres REIT is a reliable dividend stock.
Its portfolio includes well-known national retailers with established businesses and customer bases. Having a mix of tenants also reduces the trust’s dependence on any single retailer for rental income. Consistent rent collection and stable occupancy help protect cash flow, even when certain parts of the retail market face challenges.
Overall, SmartCentres REIT’s high-quality properties, strong tenant base, high occupancy levels, and ability to increase rents position it well to continue paying its monthly dividend. Into SmartCentres REIT’s latest earnings SmartCentres REIT delivered strong operating performance in Q3 2026, supported by steady tenant demand, high occupancy, and continued leasing activity across its retail portfolio. The REIT’s ability to retain tenants and secure higher rents on lease renewals reflects ongoing demand for its properties and supports rental income growth.
Its portfolio occupancy stood at 98.2% at the end of Q3, indicating that demand for SmartCentres’ retail space remains healthy. High occupancy, combined with positive rental increases on renewals, also contributed to Same Property NOI growth. Leasing activity was encouraging during the quarter.
SmartCentres had already renewed 89% of the leases scheduled to expire in 2026. In addition, lease renewals completed during Q3 achieved rental increases of 11.8% excluding anchor tenants and 6.8% including them. These increases suggest that tenants continue to see value in SmartCentres’ locations and that the REIT is in a favourable position to negotiate higher rents.
Overall, SmartCentres’ Q3 results reflect the strength and stability of its retail portfolio. SmartCentres REIT: The best monthly dividend stock SmartCentres REIT is an attractive option for investors seeking reliable monthly dividend income on the TSX. Its high occupancy rate, strong tenant base, and ability to secure higher rents provide a solid foundation for recurring rental income and add stability to its payouts.
The REIT offers a high yield of 6.7% based on its recent closing price, which adds to its investment appeal.
Source: The Motley Fool Canada
