Relating to incomes passive earnings each month, Canadian actual property funding trusts (REITs) supply a steady supply of earnings. Canada’s actual property market is robust, and the organized construction of REITs permits you to earn rental earnings with out the trouble of managing the property and tenants. In reality, you may have a diversified pool of REITs catering to varied property mixes from residential, industrial, retail, business, and warehouse. A home might offer you a 2.5% rental yield on the acquisition worth, however a residential REIT will give a better dividend yield.

A high dividend inventory for a month-to-month passive earnings

Granite REIT (TSX:GRT.UN) is one such inventory. It’s among the many few Canadian REITs which have elevated distribution per share yearly for the final 15 years regardless of the macro headwinds. Its enterprise resilience comes from its diversified portfolio of 134 income-producing properties unfold throughout North America and Europe. It has six extra properties underneath growth.

Round 70% of Granite’s properties are for distribution and e-commerce, and the remaining 30% for warehouse and particular functions. It retains buying and growing new properties that meet e-commerce wants similar to chilly storage, multi-level fulfilment, and transport services. The REIT focuses on properties with decrease capital expenditure and scope for growth and redevelopment. This manner, it could possibly modernize its properties to satisfy altering e-commerce tendencies.

The REIT’s largest tenant is Magna Worldwide, which leases 20% of gross leasable space and contributes to 27% of the REIT’s annual income. Over time, the REIT has decreased its dependence on Magna from 90% in 2012 and can proceed to take action. Its high 10 tenants account for 46% of its annual hire. That explains its resilience to macro disaster.

On the steadiness sheet entrance, Granite has decrease debt than the business common. Its web debt is 35% of the truthful market worth of its properties, and earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) is 5.1 occasions its curiosity on loans as of October 31, 2025. This reveals that it could possibly comfortably pay its debt even in a lean interval.

Purchase 195 shares of this high dividend inventory for $57/month in passive earnings

Granite REIT has been paying and even rising its distributions yearly by increasing its income-producing properties and reducing debt. This helped cut back its dividend payout ratio from 79% of funds from operations (FFO) in 2019 to round 58% in 2025, whereas growing dividends at a median annual fee of three%. Such sturdy figures present that the REIT can fund most of its developments and in addition develop dividends in lean durations when occupancy falls.

For 2026, Granite has elevated the dividend per share by 4% to $3.55. So, should you purchase 195 items of Granite REIT now, you will get a complete passive earnings of $692.25 within the subsequent 12 months or $57 per thirty days. The REIT is at present buying and selling above $76 and can provide a yield of 4.7%, which is best than what you’ll get should you hire a home.

Investor takeaway

The very best half in regards to the REIT is that the payout begins instantly from subsequent month onwards and doesn’t entice lots of and 1000’s of {dollars}. So, for $57 per thirty days, you may be paying round $15,000 to purchase 195 shares. If the REIT grows its distribution by 4%, your passive earnings will modify to inflation.

Once you don’t want the cash, you need to use the dividends to purchase extra items of Granite and compound your passive earnings.