Retiring in Canada: Build $1,000 a Month in Dividend Income

A $1,000 monthly dividend cheque can make retirement feel less like a tightrope walk and more like a plan. It can cover groceries, property tax, or that constant drip of bills that never takes a holiday. It also gives you control. You can leave your Registered Retirement Savings Plan (RRSP) alone during rough markets instead of selling at the worst time. You can budget for fun. The dream only works, though, if the income arrives on schedule and the business behind it stays sturdy.

Consider GRT

Granite REIT (TSX:GRT.UN) looks simple because it owns industrial and logistics buildings. Think warehouses, distribution centres, and the places that keep e-commerce and supply chains moving. Investors tend to like that mix when the economy keeps humming, but it can also hold up when shoppers tighten budgets, since companies still need space to store and ship essentials.

Recent news also matters because simplicity does not mean you ignore updates. In December 2025, Granite said it plans to end trading on the NYSE after December 31, 2025 and seek a listing on the OTCQX, while keeping its TSX listing. Management framed it as a cost-saving move tied to low NYSE volume. Canadian investors who buy it for TFSA income still own the same buildings and collect the same monthly distribution, but cross-border holders should watch how brokers handle the change.

Into earnings

Granite’s third-quarter 2025 results, for the period ended September 30, 2025, showed the kind of steady progress that income investors crave. The trust reported adjusted funds from operations (AFFO) of $1.26 per unit for the quarter. AFFO acts as a cash-flow yardstick, and it matters more than accounting profit for a real estate investment trust (REIT). Granite also reported an AFFO payout ratio of 67%, which leaves breathing room for maintenance spending, debt costs, and future distribution growth.

Valuation always feels tricky with real estate because markets change their mood about interest rates overnight. Granite helps itself by keeping operations tight. The industrial REIT reported in-place occupancy of 96.8% at quarter-end and pointed to strong rent growth on renewals. It also guided to higher cash flow per unit for 2025 versus 2024, even with higher maintenance capital spending. Still, you should keep an eye on debt refinancing cycles, because higher rates can squeeze every REIT, even the well-run ones.

Earning income

Now let’s connect Granite to that $1,000 monthly goal. Granite pays monthly, and in early November 2025 it set a higher targeted distribution of $0.28 per unit per month or $3.40 annually. If you want $1,000 a month, you need about 3,529 units at that rate. Using the same $81.66 unit price, that works out to about $288,383 invested, before trading costs.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDEND TOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENTGRT.UN$81.663,529$3.40$11,998.60Monthly$288,383.14

That sounds like a lot because it is a lot, and you should treat that honesty as a feature, not a flaw. Retirement income targets require real capital, and Granite shows the math. The good news is that you do not need to buy it all at once. If you hold Granite inside a TFSA and reinvest the monthly cash, you build more units over time, and the tax shelter lets compounding do its job. Granite also raised its targeted distribution, which gives long-term investors a practical tailwind.

Bottom line

A $1,000 monthly dividend stream can act like a personal pension, and that can steady nerves when markets wobble. Granite earns a spot on the shortlist because it owns essential industrial space; it keeps occupancy high, and it supports the distribution with cash flow that leaves room to breathe. The REIT still carries rate risk and real estate cycles, so you should pair it with other holdings, not treat it like a magic trick. If you want a simple, monthly-paying TSX name to build toward retirement income, GRT.UN deserves a look.

The post Retiring in Canada: Build $1,000 a Month in Dividend Income appeared first on The Motley Fool Canada.

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More reading

• Retirees: Do You Own These Crucial RRSP Stocks?
• Got $7,000? Where to Invest Your TFSA Contribution in 2026
• Turn Any TFSA Into $600 in Monthly Dividend Income
• Monthly Dividend Leaders: 3 TSX Stocks Paying Dividends Every 30 Days
• TFSA Investors: How Couples Can Earn $10,700 Per Year in Tax-Free Passive Income

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.