A 5% Dividend Stock That Pays Monthly Cash

You can make building long-term wealth a lot easier by adding quality investments to your portfolio that generate consistent income. That’s one key reason monthly dividend stocks continue attracting so much attention from long-term investors in Canada. Instead of waiting every quarter for payouts, these stocks can put cash into your account every single month, creating a more consistent passive income stream.

But reliable monthly income alone isn’t enough. The best dividend stocks also have strong business models, stable cash flows, and growth opportunities that can support payouts for years to come. Let’s take a closer look at one such monthly dividend stock that could be worth considering for long-term investors.

Choice Properties REIT stock

For investors aiming to turn their portfolios into a steady source of income, Choice Properties Real Estate Investment Trust (TSX:CHP.UN) stands out for its scale and consistency in the Canadian real estate sector. As one of Canada’s largest diversified real estate investment trusts (REITs), it owns, manages, and develops a wide portfolio of commercial retail, industrial, mixed-use, and residential properties across the country.

With nearly 700 income-producing properties and close to 60 million square feet of space, the company benefits from a portfolio heavily focused on necessity-based and grocery-anchored retail, which helps keep rental income stable.

After climbing nearly 6% so far in 2026, its stock now trades at $15.61 per share with a market cap of about $5.1 billion. More importantly for income-focused investors, the REIT currently offers a dividend yield of 5%, with monthly distributions.

Financial growth backed by strong operations

Choice Properties has continued delivering solid operational performance across its portfolio. In its latest quarterly results for the quarter ended in March 2026, the company delivered a net loss of $87.2 million, improving from a net loss of $96.2 million a year ago. The improvement was mainly tied to favourable fair value adjustments on investment properties and exchangeable units.

Moreover, the REIT’s diluted funds from operations (FFO) rose 2.7% year-over-year (YoY) to $0.271 per unit. Excluding lease surrender revenue and distribution changes tied to Allied Properties REIT, its FFO climbed by an even stronger 3.5% per unit in the latest quarter.

At the same time, Choice’s same-asset net operating income (NOI) on a cash basis inched up by 3% YoY, while total NOI increased 4.2%. These gains highlight its ability to generate growing rental income from its existing property base.

Strength and leasing activity

Another encouraging sign about Choice Properties REIT’s operations is the strength of its leasing activity. In the latest quarter, its long-term renewal leasing spreads came in at 21.8%, showing that it has been successfully renewing leases at notably higher rental rates. That could continue supporting its revenue and cash flow growth over time.

Meanwhile, the REIT also remains focused on expansion opportunities. Recently, Choice Properties entered into an agreement along with First Capital REIT and KingSett Capital to acquire high-quality urban retail assets valued at about $5 billion. This transformational acquisition could strengthen Choice’s national footprint and improve its long-term portfolio quality.

Why this stock stands out for monthly cash

In 2026, Choice Properties REIT’s management continues targeting stable occupancy and 2% to 3% annual same-asset NOI growth. The company also expects annual diluted FFO to range between $1.08 and $1.10 per unit.

Its focus on necessity-based tenants, logistics providers, and disciplined capital management gives it stability during uncertain economic periods. Meanwhile, its development pipeline could create additional long-term net asset value growth.

That’s why, for investors looking for a reliable monthly dividend stock backed by high-quality Canadian real estate assets, Choice Properties REIT definitely deserves a closer look right now.

The post A 5% Dividend Stock That Pays Monthly Cash appeared first on The Motley Fool Canada.

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More reading

• If Your Portfolio Has You Worried, These 2 Canadian Stocks Are Built to Hold Up
• A 4.8% Dividend Stock That’s Quietly Becoming a Top Pick for 2026
• 3 Canadian REITs Worth Holding in an Income Portfolio Through Any Market Condition
• 5 Canadian Stocks I’d Buy if I Wanted Instant Income
• Why This Steady 5.4% Yield Makes an Ideal TFSA Stock

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends First Capital Real Estate Investment Trust. The Motley Fool has a disclosure policy.