Invest $20,000 in This Dividend Stock for $104 in Monthly Passive Income

I always prefer income investments that let me sleep well at night. Chasing the highest yield rarely works out well if the business behind it is shaky. What I want instead is consistency, long-term visibility, and a payout that feels earned rather than forced.

Monthly dividends make that even better because income starts to feel like a monthly paycheque instead of a quarterly surprise. When your $20,000 investment can generate roughly $104 every month, it gives your portfolio a stable stream of cash flow without the need to sell shares. But the story doesn’t end with the dividend alone. The business model, underlying fundamentals, balance sheet, and long-term growth plans all matter just as much.

In this article, I will highlight one top Canadian monthly dividend stock that combines consistent income with durable growth drivers and explain why it deserves attention right now.

A top monthly income stock to buy in Canada

The monthly dividend stock I’m referring to is RioCan Real Estate Investment Trust (TSX:REI.UN), a top Canadian REIT (real estate investment trust) with a long history of paying steady income to investors. This Toronto-headquartered trust owns, develops, and operates retail-focused and mixed-use properties across Canada. Its strong portfolio is mainly anchored by necessity-based tenants such as grocery stores, pharmacies, and value retailers, which keeps the demand for its properties stable even during uncertain economic periods.

RioCan stock currently trades at $18.58 per share with a market capitalization of roughly $5.5 billion. It rewards investors with monthly dividends and offers an annualized yield of slightly over 6.2% at the current market price. This yield gives it the ability to turn a $20,000 investment into approximately $104 in monthly passive income.

Recent performance reflects operational strength

Before buying a stock for its monthly dividends, it’s important to see whether its underlying operations continue to hold up.

RioCan stock has climbed nearly 9% over the last eight months with the help of its strong operational results in recent quarters. In the third quarter of 2025, the company’s commercial same property net operating income (NOI) grew by 4.6% YoY (year-over-year) with the help of higher rents and strong leasing activity.

Its retail occupancy stood at 98.4%, showing continued demand for its properties. Meanwhile, its new leasing spreads reached 44.1%, reflecting the trust’s ability to capture market rent growth across its portfolio, despite the ongoing macroeconomic uncertainties.

Financial trends support the monthly dividend payouts

In the first nine months of 2025, RioCan’s funds from operations (FFO) climbed nearly 6% YoY to $1.42 per unit. This increase came primarily from strong same-property NOI growth and accretion from its unit buybacks, even as higher interest expenses created some pressure.

More importantly, its FFO payout ratio was about 61%, leaving a healthy margin to support its monthly distribution. While the trust’s net profit was affected by valuation losses tied to former Hudson’s Bay Company (HBC) locations, it didn’t weaken its core cash-generating ability.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYRioCan REIT$18.581,076$0.0965$103.83MonthlyPrices as of Dec 19, 2025

Long-term strategy adds visibility to future income

In November 2025, RioCan outlined a simplified, retail-focused strategy for sustainable growth. The trust expects long-term core FFO per unit growth of about 5%, with average growth of roughly 3.5% from 2026 to 2028 due to near-term refinancing.

In addition, it plans disciplined capital recycling of $1.3 to $1.4 billion through the sale of non-core assets. This approach could help RioCan REIT strengthen its balance sheet, fund reinvestment into high-quality retail properties, and support predictable cash flows that will continue to back its monthly dividends.

The post Invest $20,000 in This Dividend Stock for $104 in Monthly Passive Income appeared first on The Motley Fool Canada.

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

Before you buy stock in RioCan 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 RioCan 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

• Want $251 in Super-Safe Monthly Dividends? Invest $44,000 in These 2 Ultra-High-Yield Stocks 
• TFSA Passive Income: 2 TSX Dividend Stocks to Consider Now
• Got $1,000? 5 Top Canadian Stocks to Buy and Hold

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