Dividend-paying stocks are a great option for investors looking to generate passive income. The TSX offers a variety of strong stocks that have a history of consistently paying and increasing dividends, making them reliable choices for building a passive income stream.
One such company on the Canadian stock market that stands out for offering monthly payouts is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). This real estate investment trust distributes most of its earnings and owns a high-quality real estate portfolio that supports its monthly dividends. Currently, SmartCentres pays a monthly dividend of $0.154 per share, yielding over 8% based on its closing price of $22.92 on May 22.
SmartCentres REIT is a compelling dividend stock due to its attractive yield and reliable monthly distributions. The company’s real estate portfolio consists of 193 properties, including 155 retail properties, which contribute to its strong cash flows and occupancy rate. With a focus on retail properties and a growing demand for its portfolio, SmartCentres is well-positioned for future growth.
The company has a high tenant retention rate, with top-quality tenants like Walmart, and a strong cash collection rate. Additionally, SmartCentres is deleveraging its balance sheet and has a high percentage of fixed-rate debt, providing stability in a high-interest rate environment.
Overall, SmartCentres’ strong fundamentals and growth prospects make it a solid choice for investors looking to earn monthly cash dividends. By purchasing 1,000 shares of SmartCentres REIT, investors can earn $154 in monthly cash dividends.