The 7.3% Dividend Stock You Can Depend On

A company with a dividend yield above 7% is one that many investors would rightly question. Dividend yields typically fluctuate over time alongside a company’s stock price. When a given company’s stock price surges, its yield will come down, and vice versa. Typically, there’s some sort of range within which a given dividend yield will trade.

For SmartCentres REIT (TSX:SRU.UN), and a select few other dividend stocks (mostly real estate investment trusts), these yields can be higher. That’s mostly because of the structure of these trusts, which have charters that require more than 90% of the net operating income generated to be passed back to investors in the form of distributions.

For those looking to create meaningful passive-income streams with a high likelihood of seeing continued income growth over time, REITs are a great option in that regard. Let’s dive into why I think SmartCentres is among the top REITs investors can rely on for this growth, even though the company’s yield is higher than the industry average.

The business model has risk, but it’s somewhat mitigated

As a leading purveyor of Canadian commercial real estate, SmartCentres focuses on leasing out prime commercial real estate to retailers and other business operators. The company’s portfolio of nearly 200 properties in Canada is among the best-in-class in this segment. Most notably, these locations are often anchored by Walmart, a company I’d argue provides about as rock-solid an anchor tenant as they come.

In essence, I view SmartCentres as a unique and sneaky way to play the profitability (and future rent growth) stemming from Walmart’s Canadian operations. And even within the company’s portfolio of properties that aren’t leased directly to Walmart, the other businesses in various malls around the country benefit from the foot traffic associated with Walmart’s presence, leading to very low occupancy rates over the long term.

So, why the sky-high dividend yield?

SmartCentres has gone through various periods where its share price has declined considerably as investors looked to offload any real estate holdings with exposure to retail. I think this is a generally misguided view, as not all real estate leased to retailers is the same.

In essence, I think SmartCentres is one of the few retail REITs worth considering right now, recognizing fully that consumers are pulling back on spending broadly as prices rise. Walmart is one of the last bastions of hope for millions in the middle class, and unfortunately, I think it’s going to be this way for a while.

The post The 7.3% Dividend Stock You Can Depend On appeared first on The Motley Fool Canada.

Should you invest $1,000 in SmartCentres Real Estate Investment Trust right now?

Before you buy stock in SmartCentres Real Estate Investment Trust, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and SmartCentres Real Estate Investment Trust wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• My Blueprint for Generating $113/Month Using a $20,000 TFSA Investment
• This 7.3% Dividend Stock Could Pay Me Every Month Like Clockwork
• High Yield, Low Stress: 3 Income Stocks Ideal for Retirees
• 3 High-Yield Dividend Stocks That Are Compelling Buys Right Now
• This 7% Dividend Stock Pays Cash Every Single Month

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.