1 High-Yield Dividend Stock You Can Buy and Hold for a Decade of Income

Investors looking for income could consider high-yield dividend stocks. That said, dividends are inherently discretionary and can be reduced or suspended if a company’s financial position weakens. As a result, an effective strategy is to focus on the underlying fundamentals, including earnings consistency, cash flow stability, balance sheet strength, and a sustainable payout ratio. These factors indicate whether the stock can sustain and potentially grow its dividend over time.

Against this background, here is a high-yield dividend stock you can buy and hold for a decade of income. This Canadian stock has been consistently paying dividends for years and is well-positioned to sustain its payouts.

A high-yield dividend stock to hold for decades

While the TSX has several high-quality dividend stocks offering steady payments, SmartCentres REIT (TSX:SRU.UN) stands out for its compelling yield, durable distributions, and monthly payouts.

SmartCentres REIT currently distributes $0.154 per share each month, yielding approximately 6.5% annually based on its recent closing price of $28.41. Further, SmartCentres’ monthly dividends are well-protected.

Supporting the REIT’s payouts is its high-quality real estate portfolio. Its assets are concentrated in high-traffic retail locations, often anchored by top retailers. This positioning supports resilient net operating income (NOI), even through varying economic conditions. Strong tenant demand in these locations has historically translated into high occupancy levels and favourable lease renewal rates, both of which support consistent rental income and steady dividend payments.

Into SmartCentres’ recent earnings

SmartCentres REIT has been consistently delivering solid operational performance, reflecting the resilience of its retail-focused portfolio. As of December 31, 2025, the trust maintained a high in-place and committed occupancy rate of 98.6%, reflecting both disciplined asset management and sustained tenant demand.

Notably, strong foot traffic across its properties and a stable tenant mix supported same-property net operating income (NOI) growth of 2.9% for the fourth quarter of 2025. When excluding anchor tenants, NOI growth was even more robust at 5.1%. This performance was primarily driven by higher lease-up activity, renewal spreads in retail assets, and improving occupancy in newer segments such as self-storage and residential rentals.

Leasing activity remained a key driver of growth. During the quarter, the REIT leased approximately 35,500 square feet of previously vacant space, bringing total leased space to roughly 430,000 square feet for 2025. In parallel, demand for newly developed retail space continued to build, with 33,000 square feet of new leases executed in the quarter and 125,000 square feet for the full year. This sustained leasing momentum points to healthy retailer demand despite broader macroeconomic uncertainties.

Rental rate growth further highlights the REIT’s pricing power. Lease renewals delivered an 8.4% increase in rents excluding anchor tenants. Importantly, the REIT collected more than 99% of its rental revenue during the period, a level that signals both tenant financial health and the reliability of income streams.

Overall, SmartCentres REIT’s latest results reflect a well-balanced combination of high occupancy, steady leasing demand, and meaningful rental growth. This positions it well to consistently pay its monthly dividends.

SmartCentres REIT to sustain its payouts

SmartCentres REIT is well-positioned to steadily grow cash flow. Its retail portfolio remains stable, supported by high occupancy rates, while additional upside is coming from its mixed-use development projects. The REIT benefits from a reliable tenant base, increased leasing demand, and a solid balance sheet, all of which support consistent NOI growth and help sustain its monthly distributions. On top of that, its large reserve of underutilized land creates meaningful opportunities for long-term expansion.

If you purchase 1,000 shares of SmartCentres REIT, you could expect to earn roughly $154 per month in dividend income. Over a full year, that adds up to more than $1,848 in dividends.

CompanyRecent PriceNumber of SharesDividendTotal PayoutFrequencySmartCentres REIT$28.411,000$0.154$154MonthlyPrice as of 04/16/2026

The post 1 High-Yield Dividend Stock You Can Buy and Hold for a Decade of Income appeared first on The Motley Fool Canada.

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* Returns as of March 24th, 2026

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Fool contributor Sneha Nahata 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.