This 6.5% Dividend Play Sends a Cheque Like Clockwork

The Canadian equity market has several high-quality dividend plays offering dependable income. For instance, utility companies like Fortis and Canadian Utilities have been paying and increasing their dividends for over five decades. Then there are top stocks in the energy space, like Enbridge and Canadian Natural Resources, that have shown resilience for years and have consistently raised dividends, supported by steady cash flow growth, enabling them to send a cheque like clockwork.

However, here I’ll focus on a TSX stock that offers a reliable dividend and an attractive yield. Its strong underlying business and steadily rising cash flow have enabled it to deliver dependable payouts to shareholders for decades.

SmartCentres REIT sends a cheque like clockwork

SmartCentres REIT (TSX:SRU.UN) is a perfect stock that sends a cheque like clockwork. The real estate investment trust’s (REIT’s) strong payout history, monthly distributions, and high yield make it a compelling income investment. It currently pays $0.154 per unit. This translates into an annualized yield of about 6.5%.

SmartCentres REIT’s payouts are well-protected by its resilient cash flow, driven by a portfolio concentrated in high-quality retail and mixed-use properties. Moreover, many of these properties are situated in prime locations witnessing durable demand. These locations exhibit stable occupancy levels, higher leasing demand, and pricing power, which contribute to steady net operating income (NOI).

The REIT also benefits from a high-quality tenant base with strong credit profiles, thereby reducing counterparty risk and enhancing rent collection.  

Overall, SmartCentres REIT is a compelling income stock backed by a high-quality real estate portfolio, solid leasing momentum, and a growing NOI.

Into SmartCentres’s recent performance

SmartCentres closed 2025 with a strong operating performance, driven by sustained tenant demand and consistently high occupancy across its portfolio. The REIT reported an occupancy rate of 98.6%, indicating strong demand for its retail-focused properties.

The REIT’s NOI benefitted from strong leasing momentum within its core retail segment, complemented by improving fundamentals in self-storage and residential rental properties.

SmartCentres executed approximately 430,000 square feet of leases in 2025. More importantly, renewal spreads were particularly strong, with rental rates increasing by 8.4% when excluding anchor tenants.

SmartCentres REIT’s rent collection exceeded 99%, reflecting the high quality of its tenant base and operational efficiency.

Overall, SmartCentres’s 2025 performance indicates that its retail properties continue to perform well and are witnessing solid demand. In addition, higher traffic and a solid tenant base continue to support NOI growth and dividend payments.

SmartCentres to sustain its payouts

SmartCentres is well-positioned to maintain stable distributions, supported by the strong performance of its core retail portfolio. The REIT continues to generate solid NOI, driven by its focus on tenant quality, active lease management, and incremental growth through store openings within existing properties.

Beyond its traditional retail base, SmartCentres is advancing a strategic shift toward mixed-use development. Its expanding pipeline introduces residential, office, and other non-retail components, which should gradually diversify revenue streams.

From a balance sheet perspective, the REIT maintains a relatively conservative risk profile. With approximately 90% of its debt fixed and maturities staggered over time, SmartCentres is partially insulated from near-term interest rate volatility. In addition, its significant land holdings provide a foundation for future growth.

In summary, SmartCentres REIT is an attractive dividend play with the ability to send consistent monthly cash.

The post This 6.5% Dividend Play Sends a Cheque Like Clockwork appeared first on The Motley Fool Canada.

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* Returns as of April 20th, 2026

More reading

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• 3 High-Yield Dividend Stocks You Could Hold in 2026 Without Losing Sleep

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Enbridge, Fortis, and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.