Invest $10,000 in This Dividend Stock for $707.8 in Passive Income

Written by Sneha Nahata at The Motley Fool Canada

Many Canadian companies consistently pay dividends regardless of market conditions. These Canadian stocks are a reliable investment for generating steady passive income. One of them is SmartCentres REIT (TSX:SRU.UN), which is known for rewarding shareholders with regular monthly payouts and a high yield.

SmartCentres is Canada’s leading fully integrated real estate investment trust (REIT) with an extensive portfolio of mixed-use properties located at prime locations across the country. The company manages about $12.1 billion in assets and controls 35.6 million square feet of income-producing retail and top-tier office spaces, designed to generate stable, recurring cash flow.

Let’s take a closer look at SmartCentres’s operating metrics and recent performance. With that in the background, it becomes easier to estimate just how much passive income a $10,000 investment in this high-yield dividend stock could produce over the course of a year.

SmartCentres REIT is known for its durable monthly payouts even during the prolonged high-interest-rate environment and economic downturns. It has maintained a steady monthly dividend of $0.154 per unit, reflecting an attractive yield of approximately 7.1%.

The REIT’s consistent monthly payouts are supported by its diversified real estate portfolio, high occupancy rate, and a strong tenant mix that together drive its same-property net operating income (SPNOI).

With 197 mixed-use properties strategically positioned in prime, high-traffic areas, SmartCentres benefits from locations that naturally attract shoppers and maintain high occupancy rates. As of September 30, 2025, the REIT posted an in-place and committed occupancy rate of 98.6%, reflecting the resilience of its assets and the ongoing leasing demand across its network.

So far this year, leasing momentum has remained solid. The REIT filled about 68,000 square feet of vacant space during the quarter, bringing its year-to-date total to roughly 394,000 square feet. Demand for newly developed retail space also continues to build, with nearly 25,000 square feet leased in the third quarter and approximately 92,000 square feet secured since the start of the year.

Lease renewals further highlight the trust’s strength. Nearly 85% of leases set to mature in 2025 have already been renewed or finalized, and these renewals have been accompanied by healthy rent growth of 8.4% for non-anchor tenants. Rent collection also remained exceptionally strong at 99%.

Overall, SmartCentres REIT’s solid operating metrics and steady demand from high-quality retailers provide a strong base for future growth. With strong leasing activity, rising rents, and consistently reliable tenants, the trust appears well-positioned to maintain its monthly payouts well into the future.

SmartCentres REIT appears well-positioned to maintain its monthly distributions, supported by the stability of its core retail portfolio. High occupancy levels and healthy leasing activity continue to provide a reliable income base. At the same time, the REIT is steadily expanding into mixed-use developments, which diversifies its earnings and aligns its portfolio with shifting urban and consumer trends.

This combination of dependable mixed-use assets, a strong balance sheet, and an extensive land bank that remains largely untapped gives SmartCentres meaningful room to grow.

Based on the current market price, a $10,000 investment in SmartCentres REIT would secure approximately 383 shares. Those shares generate about $58.98 in monthly passive income, or roughly $707.8 annually.

The post Invest $10,000 in This Dividend Stock for $707.8 in Passive Income appeared first on The Motley Fool Canada.

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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.

2025