Can TSX stocks pay you a monthly passive income? Yes, they can. Real estate investment trusts (REITs) are a popular investment for monthly dividends, as they pass on the majority of their rental income to unitholders through distributions. Their trust structure is designed to keep a minimum amount for expenses and pass on the remainder of the income. The unit price of a REIT doesn’t fluctuate much as it depends on the value of the property portfolio.
This TSX stock pays a 0.57% dividend every single month
Slate Grocery REIT (TSX:SGR.UN) is a good investment for three reasons. Firstly, 46% of its tenants are grocers, such as Kroger and Walmart. They are sticky, which ensures their stores continue to generate rental income. Secondly, its 115 properties are spread across 23 states of the United States. Not many retail properties are vacant in America, which keeps supply tight and gives Slate Grocery REIT room to increase its rent at renewal. In the first quarter of 2026, its total leasing spread was 15.3%. Lastly, it pays dividends in U.S. dollars, and Canadians get their dividends in Canadian dollars and benefit from exchange rates.
Slate Grocery pays US$0.072 in dividends per share every month. The yield you see on charts is annual. Slate Grocery’s annual yield is 6.86%. But when you break it down to per month, the monthly yield comes to 0.57%. A $10,000 investment will earn you $57.27 every month and $687.28 in a year. What may look like a small return is higher than what a housing property yields.
A $500,000 flat may yield $2,000-$2,500 in monthly rent, which comes to 0.4%-0.5% monthly yield. And this rent is taxable, plus you have to incur marketing, brokerage, maintenance, legal, and other costs to manage the property. By investing in Slate Grocery REIT, you only bear the brokerage cost. And if you invest through a Tax-Free Savings Account (TFSA), you save dividend tax.
Risks involved in a 0.57% yield
The biggest drawback of Slate Grocery is that it does not grow the dividend. The only growth you get is from the exchange rate conversion. Also, there is no dividend-reinvestment plan (DRIP), which means you will most likely earn around $57 a month for five, 10, or 15 years if you stay invested. Considering inflation, the purchasing power of this passive income may not keep pace with expenses.
A solution to this is to invest the dividend in another dividend stock and compound your returns. When you accumulate a sizeable amount, you can start collecting payouts.
This TSX stock pays a 0.45% dividend every single month
CT REIT (TSX:CRT.UN) is a good stock to put your Slate Grocer dividend into. CT REIT offers DRIP and grows its dividend at an average annual rate of 3%. This will give you a monthly compounding effect at two stages: first, where Slate Grocery dividend is reinvested; second, at CT REIT DRIP. The bonus is CT REIT’s 3% dividend growth and 3% discount on DRIP shares.
A $10,000 investment today in Slate Grocery REIT will buy 568 units, which will give $687 in 2026 dividends. This amount invested in CT REIT will buy 37 units. Assuming CT REIT’s unit price increases by 2% every year, your dividend could grow to $570 by 2036. This is annual compounding, but in reality, your money will compound monthly. It means the actual dividend amount will be higher, assuming the growth rates remain stable in these 10 years.
