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What makes a month-to-month dividend inventory look excellent for a Tax-Free Financial savings Account (TFSA) isn’t just the yield. It’s the mixture of regular money, reliable operations, and sufficient stability that you don’t spend each month questioning whether or not the payout will survive. A TFSA is a superb place for that form of inventory as a result of the earnings can compound tax free, and month-to-month funds give buyers extra probabilities to reinvest. When the enterprise behind the payout is tied to on a regular basis wants, the case will get even stronger. That’s why in the present day, we’re this strong dividend inventory on the TSX in the present day.

SGR

Slate Grocery REIT (TSX:SGR.UN) is strictly what the title suggests: an actual property funding belief (REIT) centered on grocery-anchored retail properties in america. Grocery-anchored plazas are typically extra resilient than many different retail codecs. Individuals nonetheless want meals, pharmacies, and on a regular basis necessities, whether or not the economic system is booming or simply muddling alongside. For TFSA buyers, that form of defensive tenant combine might be very interesting.

Over the past yr, the REIT has stored the story fairly sensible. It accomplished 1.7 million sq. ft of complete leasing in 2025, with renewal spreads of 14.9% and new leasing spreads of 34.9% above comparable in-place hire. Briefly, it has been holding areas stuffed and pushing rents larger, which is strictly what you need from a REIT making an attempt to assist month-to-month earnings. It additionally offered a non-grocery property in Texas and acquired the remaining minority curiosity in a 10-asset joint-venture portfolio, strikes aimed toward sharpening the portfolio and bettering flexibility.

There may be additionally a steadiness sheet angle price . Administration stated the weighted-average rate of interest was 5% at year-end 2025, with 87.8% of debt fastened, and that it refinanced an eight-property portfolio for US$90 million after quarter-end. That doesn’t make the REIT bulletproof, but it surely does recommend administration is making an attempt to maintain financing threat from changing into a nasty shock. For a dividend inventory, that form of boring housekeeping is definitely excellent news.

Into earnings

The earnings aspect seems to be strong sufficient to maintain earnings buyers . Within the fourth quarter of 2025, rental income rose 2.9% yr over yr to US$54.6 million, whereas web working earnings (NOI) elevated 1.7% to US$42.2 million. Identical-property NOI for the yr rose 1.9%, and portfolio occupancy ended 2025 at 94.4%. That isn’t explosive development, however it’s regular, and regular works simply tremendous when the aim is dependable month-to-month money.

Funds from operations held up pretty nicely, too. Fourth-quarter funds from operations (FFO) got here in at US$14.9 million, or US$0.25 per weighted common unit, flat from a yr earlier. AFFO was US$11.7 million, or US$0.19 per unit, down a contact from US$0.20. The AFFO payout ratio was 110.8%, which is larger than ideally suited, so this isn’t a flawless earnings story. Nonetheless, the FFO payout ratio was a extra snug 86.9%, which suggests the distribution stays supported by the core enterprise even when the margin for error will not be large.

The valuation is the place the case will get extra fascinating. The REIT holds a market cap of round $915 million and a trailing price-to-earnings (P/E) ratio of round 16.8. That isn’t bargain-basement low cost, but it surely additionally doesn’t look stretched for a grocery-focused REIT with wholesome leasing spreads and a steady occupancy profile. The plain threat is leverage, with debt-to-gross guide worth at 55.3%, so that is nonetheless a reputation that wants regular execution. However for TFSA buyers who need month-to-month earnings from a defensive actual property area of interest, it matches fairly nicely — particularly with even $7,000 to create dividend earnings immediately.

Backside line

Put all of it collectively, and Slate Grocery REIT makes a robust case as a month-to-month TFSA inventory. It owns the form of actual property individuals maintain utilizing, it retains gathering hire, and it retains sending out month-to-month money. It’s not risk-free, and the payout protection is price watching. However if you would like one month-to-month dividend inventory with an honest yield and a enterprise tied to on a regular basis spending, this one seems to be fairly near excellent.