Buy 758 Shares of This Top Dividend Stock for $75 a Month in Passive Income

When you have a dependable monthly income coming from your investments, your financial plans start to feel a lot more stable. Whether you reinvest that money or use it to cover expenses, it’s income that doesn’t rely on you clocking in.

That’s exactly what 758 shares of Slate Grocery REIT (TSX:SGR.U) could give you right now. About $75 a month, sent to your account without lifting a finger. The REIT holds a strong portfolio of grocery-anchored real estate across the U.S. and continues to benefit from solid tenant demand. In this article, I’ll walk you through why this top monthly dividend stock is currently offering one of the most dependable income setups on the TSX and why it could be worth adding to your portfolio.

A closer look at a REIT that feeds your portfolio every month

Before reviewing its key financials, let’s take a closer look at what this grocery-focused REIT does. Slate Grocery REIT owns and operates a US$2.4 billion portfolio made up of 116 grocery-anchored retail properties spread across 23 U.S. states.

After climbing 8% year-to-date, its shares currently trade at $14.95 apiece, with a market cap of about $884 million. What makes this stock especially attractive for defensive investors is its monthly dividend payout of US$0.072 per unit or around $0.099 in Canada, translating to an annualized dividend yield of nearly 8%. That’s a solid return for simply holding a stock, especially one backed by real assets and long-term leases.

What’s been driving this monthly dividend stock

Even with economic uncertainty lingering, Slate Grocery REIT’s business continues to deliver stable earnings as tenant demand for its properties remains strong, especially for grocery-anchored spaces. In the latest quarter ended in September 2025, the REIT reported stable occupancy at 94.3%. Currently, its average in-place rent of US$12.82 per square foot is well below the market average of US$24.09. That gap gives it plenty of room to boost rental income over time.

Last quarter, it completed 417,000 square feet of leasing, with new deals signed at 34.8% above comparable rents and renewals completed at 15.1% above expiring leases. These figures clearly show it’s not simply leasing space, but also securing higher value from each agreement.

Financials show a business built for stable payouts

On the financial side, Slate Grocery REIT’s rental revenue rose 1.9% YoY (year-over-year) to US$53.3 million in the third quarter. Similarly, its net operating income (NOI) also grew by 2.6% YoY, while net profit jumped 55% YoY to US$11.2 million with the help of improved leasing and valuation gains.

Even with these positives, its funds from operations and adjusted funds from operations (AFFO) fell slightly, with AFFO down 9.2% YoY. This was mainly due to higher financing and capital expenses. That said, Slate’s AFFO still covered the dividend payout, with a payout ratio of 99.9%, indicating it remains sustainable even with those pressures.

A dependable setup for long-term income

While short-term fluctuations in AFFO might concern some, Slate Grocery REIT’s long-term growth outlook remains strong. The REIT has over 90% of its debt fixed, with a weighted average interest rate of 5%, helping it avoid the worst of rate volatility.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYSmartCentres REIT$14.94758$0.099$75.04MonthlyPrices as of Dec 16, 2025

Meanwhile, it’s refinancing actively and has pushed its weighted average debt maturity to 2.6 years. In addition, with 26% of its leases expiring by 2027, and most of those well below market rates, the REIT appears to have a clear path to rent growth and higher NOI in the coming years.

On top of that, its strong presence in growing U.S. markets makes it look like a solid bet for investors seeking monthly dividend income.

The post Buy 758 Shares of This Top Dividend Stock for $75 a Month in Passive Income appeared first on The Motley Fool Canada.

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Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.