Dividend shares reward shareholders with common money funds, making them a compelling funding possibility for producing passive earnings. Nevertheless, when deciding on the appropriate dividend inventory, study the corporate’s fundamentals and give attention to Canadian firms with sturdy financials, a confirmed historical past of dividend funds, a sustainable payout ratio, and regular earnings development.

Furthermore, among the many prime dividend-paying shares, people who provide month-to-month distributions are notably engaging for anybody looking for a constant earnings stream, as they perform nearly like an everyday paycheque, serving to buyers extra easily handle money move.

With these elements in thoughts, here’s a dependable dividend inventory that’s my prime choose for passive earnings. Furthermore, this Canadian inventory gives a excessive yield of seven%, making it a gorgeous possibility for buyers looking for a gradual earnings.

A prime TSX dividend inventory providing a 7% yield

Among the many restricted variety of TSX-listed shares that reward buyers with month-to-month dividends, SmartCentres REIT (TSX: SRU.UN) is a prime funding for passive earnings. Its lengthy historical past of regular payouts, excessive yield, and give attention to rewarding shareholders with month-to-month distributions make it a compelling alternative for passive earnings.

The actual property funding belief (REIT) operates a stable portfolio of high-quality actual property property that persistently generate sturdy same-property internet working earnings (NOI), supporting its dividend payouts.

Notably, SmartCentres owns 197 mixed-use properties, strategically positioned throughout Canada. Many of those websites are positioned at key intersections close to densely populated areas, giving the belief a major benefit in attracting constant foot site visitors. This geographic power helps excessive occupancy charges and ongoing demand for its properties, making certain reliable rental earnings yr after yr.

The REIT’s core retail actual property portfolio provides stability to its operations and helps regular payouts. Its tenants embrace main nationwide retailers with a defensive enterprise mannequin. These well-established manufacturers assist maintain shopper exercise, which in flip retains occupancy ranges sturdy and rental funds regular.

Presently, buyers can earn $0.154 per unit each 30 days by investing on this REIT. Primarily based on its closing value of $26.60 on November 3, its present dividend interprets right into a excessive yield of about 7%.

SmartCentres to maintain its payout

The sturdy efficiency of its core retail portfolio and mixed-use growth place it nicely to maintain its payouts nicely into the longer term. The REIT is strengthening its retail portfolio by attracting high-quality tenants and bettering its tenant combine. Furthermore, it’s opening new shops inside present properties. These initiatives will drive secure and rising money flows, making certain constant earnings and dividend payouts.

The REIT’s working efficiency metrics stay stable. Within the second quarter of 2025, SmartCentres reported a excessive occupancy charge of 98.6%, whereas hire collections exceeded 99%. It has additionally been profitable in renewing leases at greater rental charges, an indication of sturdy demand for its retail areas. This development highlights the resilience of its portfolio and skill to generate regular earnings.

Past retail, SmartCentres is ramping up its mixed-use growth tasks. This strategic diversification enhances its long-term earnings outlook and permits it to capitalize on shifting shopper habits and urbanization traits. Mixed with a stable stability sheet and an intensive land financial institution, SmartCentres is well-positioned for regular development, which is able to help its long-term payouts.

Should you purchase 1,000 shares of SmartCentres REIT, you’ll begin incomes a passive earnings of $154 each month.