Most dividend shares solely pay buyers 4 occasions a yr. However a small group of dividend shares sends money 12 occasions a yr as a substitute. That constant stream of month-to-month revenue could make your budgeting simpler, assist clean out market ups and downs, and increase long-term returns should you reinvest the payouts.
Proper now, one TSX-listed actual property funding belief (REIT) is providing a 7.3% annualized yield, and it pays that dividend month-to-month. The belief owns U.S. grocery-anchored properties that proceed to generate regular money circulate. Let’s take a better look.
A prime TSX month-to-month dividend inventory to purchase
Slate Grocery REIT (TSX:SGR.UN) owns and operates grocery-anchored actual property throughout main U.S. cities. In easy phrases, most of its properties are constructed round supermarkets and different shops individuals depend on for on a regular basis necessities. As a result of individuals at all times want groceries, this kind of actual property tends to carry up effectively, even when the economic system slows down.
The REIT presently trades at $15.68 per share, giving it a market capitalization of $927.4 million. At that value, buyers get a 7.3% annualized dividend yield, paid month-to-month. For anybody constructing passive revenue, that blend of a excessive yield and frequent funds will be actually interesting.
Within the fourth quarter of 2025, Slate Grocery REIT delivered robust outcomes with its rental income rising to US$54.6 million. In the meantime, its internet working revenue (NOI) additionally elevated, to US$42.2 million.
Through the quarter, the agency’s occupancy stayed stable at 94.4%, highlighting the steadiness of its grocery-focused retail properties.
Leasing spreads present room to develop
One of the encouraging info about Slate Grocery REIT is the continued momentum in its leasing exercise. Within the newest quarter, the REIT accomplished greater than 680,000 sq. ft of leasing at a 12.3% whole leasing unfold. It additionally signed renewal leases at rents 14.9% larger than the earlier charges. Equally, new leases have been signed at rents 45.7% larger than comparable in-place rents.
There may be additionally a noticeable hole between the rents Slate presently prices and broader market charges. The REIT’s common in-place hire is US$12.86 per sq. foot, whereas the market common is US$24.34. That distinction offers it enormous room to boost rents over time as leases expire and renew, which may help future revenue progress.
Stability sheet power helps its month-to-month dividends
We shouldn’t neglect {that a} excessive yield solely issues if it may be maintained. In Slate’s case, its stability sheet provides some consolation. The REIT has a weighted common rate of interest of 5%, and 87.8% of its debt is fixed-rate. Meaning most of its borrowing prices are predictable and shielded from sudden rate of interest modifications.
Additionally, the REIT’s weighted common capitalization charge is effectively above its borrowing prices, which helps it profit from optimistic leverage. With about US$2.4 billion in property throughout 115 properties and continued progress in NOI, this construction may very effectively help long-term worth creation.
The general concept is easy. This grocery-anchored actual property is tied to important spending, not non-compulsory purchases. Even throughout unsure occasions, individuals nonetheless purchase meals and family fundamentals. That regular demand helps tenants and helps preserve hire funds flowing. That’s why, for buyers who need reliable month-to-month revenue, Slate Grocery REIT’s 7.3% yield paid each single month seems to be actually engaging.