A Year Later: This Monthly Dividend Stock Still Pays Like Clockwork

If you bought Granite REIT (TSX:GRT.UN) a year ago for its monthly income, here is the honest update: It kept its promise.

When the stock market gets wobbly, getting paid on a predictable schedule can help you stay calm and stay invested. And one way to judge whether a stock can keep delivering is straightforward — look at what the company actually did. That’s exactly what we’re doing today.

GRT

Granite REIT owns industrial and logistics real estate across North America and Europe. Think warehouses, distribution hubs, and the kind of buildings companies need to move stuff from point A to point B. It doesn’t rely on one tenant or one market, and it has spent years diversifying away from being overly tied to Magna. Over the last year, that steady, practical portfolio has done exactly what you want a monthly dividend stock to do. It kept leasing space, collecting rent, and paying distributions without drama.

The past year also brought a few corporate housekeeping moves that signalled focus. Granite simplified its market footprint by stepping away from its New York listing and leaning more into its Canadian base. It also kept tuning the portfolio through acquisitions and dispositions rather than swinging for headline-grabbing deals. In early 2026, it highlighted about $292 million of acquisitions and $190 million of dispositions.

Operationally, the recent leasing update looked like a flex. In-place occupancy reached 98% at the end of 2025, up sharply from the year before, and committed occupancy sat at 98.6% in late February 2026. Even better, Granite achieved average rental rate spreads of 24% over expiring rents on roughly 1.2 million square feet of renewals in the fourth quarter. That is the kind of quiet win that supports a “pays like clockwork” reputation, because rent growth is what keeps cash flow moving in the right direction.

Into earnings

On the earnings side, Granite posted clean, income-investor-friendly numbers for 2025. Funds from operations (FFO) totalled $363.0 million for the year, and diluted funds from operations per unit came in at $5.91, up from $5.44 in 2024. Adjusted FFO totalled $319.8 million, and diluted AFFO per unit reached $5.21, up from $4.86. In the fourth quarter alone, diluted FFO per unit rose to $1.59 and diluted AFFO per unit came in at $1.30, which shows the year ended with momentum rather than a limp.

Valuation also looks reasonable for a REIT that is executing this cleanly. The cash yield looks like a classic “paid to wait” level rather than a distressed level, since the $3.44 annualized distribution works out to about a 4% yield at that price. That isn’t a screaming bargain yield, but it signals something better: The market still trusts the payout.

The forward outlook keeps the clockwork narrative intact. For 2026, Granite forecast FFO per unit of $6.25 to $6.40 and AFFO per unit of $5.40 to $5.55, which implies another step up from 2025. It also forecast constant currency same property NOI growth of 5.5% to 6.5% on a four-quarter average through 2026. That suggests growth that comes from rent and operations, not just financial engineering. The main risks still exist, of course. A deeper U.S. slowdown can hit tenant demand, and higher-for-longer interest rates can make refinancing less fun. But with high occupancy, visible rent spreads, and a sensible payout ratio, Granite has more shock absorbers than most.

A year later, Granite passes every check a monthly dividend investor should run: occupancy up, rent spreads up, FFO per unit up, payout ratio intact, and a 2026 forecast that implies more of the same. That is what “pays like clockwork” actually looks like under the hood.

Bottom line

The investment case here is simple, and it hasn’t changed. Granite does the boring things well, and boring is exactly what you want from a monthly dividend stock. It raised its distribution, improved occupancy, grew FFO and AFFO per unit, and kept the payout ratio in a range that looks sustainable. The share price has risen about 30% over the past year while Granite remained a smart choice for yield-seeking investors. Here’s how much income you could earn with a $7,000 position today.

COMPANYRECENT PRICENUMBER OF SHARES YOU COULD BUY WITH $7,000ANNUAL DIVIDENDTOTAL ANNUAL PAYOUTPAYOUT FREQUENCYGRT.UN$88.3579$3.44$271.76Monthly

If your goal is passive income that shows up like a metronome, Granite still earns its spot on the “buy it and stop fussing” list. If that’s the kind of income investing you want to do more of, I recommend checking out Stock Advisor Canada.

The post A Year Later: This Monthly Dividend Stock Still Pays Like Clockwork appeared first on The Motley Fool Canada.

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More reading

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• Canadian Real Estate Stocks That Could Be Due for a Big 2026

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.