Top Canadian dividend stocks have consistently provided a reliable stream of passive income, even during times of market instability. Companies such as Bank of Montreal, Scotiabank, and Toronto-Dominion Bank have a long history of paying dividends, with over a century of consistent payouts, underscoring their resilience and dedication to shareholders.
Additionally, stocks like Fortis, Enbridge, and Canadian Natural Resources have steadily increased their dividends over many years, making them top choices for income-focused investors.
While these strong Canadian companies are well-known for their long-standing dividend payment and growth records, there are other attractive options for income investors. One example is a stock that not only pays consistent dividends but also does so on a monthly basis, providing a steady income stream.
Moreover, this stock offers an attractive yield of over 7%, meaning a $10,000 investment could generate approximately $752 annually in passive income.
A Prime Canadian Stock for Monthly Income Canadian investors looking for reliable passive income might consider investing in SmartCentres Real Estate Investment Trust (TSX: SRU.UN). This REIT is recognized for its stable monthly payouts and offers a high, sustainable yield.
SmartCentres owns and manages a high-quality portfolio of retail and mixed-use properties, providing stability and growth potential across various market cycles. The REIT currently offers a monthly dividend of $0.154 per share, which translates to a yield of 7.5% based on its recent price of $24.55.
With this context, let’s explore why SmartCentres REIT is a dependable choice for monthly income.
Why SmartCentres REIT is Reliable SmartCentres is an excellent investment for those seeking regular passive income. The REIT’s high-quality real estate portfolio, mainly consisting of high-traffic centers, consistently boosts its net operating income and cash flow, supporting its distributions.
The REIT’s focus on retail properties adds stability to its financial performance and helps maintain high occupancy rates. Additionally, the development of mixed-use properties is expected to enhance its growth trajectory.
In the second quarter (Q2) of 2024, SmartCentres achieved an impressive occupancy rate of 98.2%, driven by strong tenant demand. The ongoing demand for both existing and newly built spaces ensures a solid foundation for future growth. Notably, SmartCentres extended over 86% of its leases maturing in 2024 at higher rents and successfully re-leased its vacant industrial space above previous rental rates, reflecting robust demand and continued growth.
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The REIT anticipates continued stability and high occupancy within its retail portfolio. Furthermore, the growth of its mixed-use initiatives and significant underutilized land assets are expected to generate resilient income and increase funds from operations (FFO), supporting its monthly distributions.
Generate $752 in Passive Income In summary, SmartCentres’ high-quality properties, strong leasing demand, high occupancy rates, top-tier tenants, and solid development pipeline provide a strong foundation for future growth and consistent dividend payments.
With a $10,000 investment, investors could acquire approximately 407 shares of this REIT at the current market price. This investment would generate about $62.68 in monthly income, totaling around $752.16 annually in passive income, as shown in the table provided.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
|---|---|---|---|---|---|
| SmartCentres REIT | $24.55 | 407 | $0.154 | $62.68 | Monthly |
Price as of 08/21/2024