1.Canadian Apartment Properties REIT
CAR.UN (TSX)
Canadian Apartment Properties REIT (CAR.UN), recognized as Canada's largest residential REIT, offers a compelling monthly dividend yield of 6.63%. Despite a challenging 1-year return of -3.97% and a 5-year decline of -19.60%, it remains undervalued, positioning itself as a strong candidate for investors seeking reliable income and growth potential. With a B- analyst rating, CAR.UN is attractive for those looking to benefit from ongoing demand in the Canadian housing market.
Pros:
- High dividend yield
- Large portfolio of residential properties
Cons:
- Negative 1-year and 5-year returns
- Market volatility risk
2.RioCan Real Estate Investment Trust
REI.UN (TSX)
RioCan Real Estate Investment Trust (REI.UN) emphasizes stable income through its monthly dividends and focuses on Canadian retail properties with impressive occupancy rates. With a solid dividend yield of 6.17% and a 1-year return of 8.74%, this REIT is an attractive option for investors seeking reliable income, particularly in a TFSA. The stock has garnered a "Moderate Buy" consensus from analysts, reflecting confidence in its performance and potential for growth.
Pros:
- Stable income from monthly dividends
- High occupancy rates
Cons:
- Underperformed broader market recently
- Dependence on retail sector performance
3.Exchange Income Corporation
EIF.TO (TSX)
Exchange Income Corporation (EIF) is an appealing choice for investors seeking reliable dividend income, boasting a diversified portfolio that includes manufacturing and aviation operations. With a robust dividend yield of 3.25% and impressive returns of 57.25% over the past year and 128.44% over five years, EIF demonstrates strong performance potential. Analysts have given it favorable ratings, with TD Securities, Scotiabank, and RBC Capital all maintaining their "Buy" or "Outperform" designations, reinforcing its attractiveness in dividend-focused portfolios.
Pros:
- Strong dividend growth history
- High 5-year return
Cons:
- Market volatility risk
- Dependence on macroeconomic conditions
Final Words
As you consider the best monthly dividend stocks in Canada this January 2026, remember that Exchange Income Corporation offers a compelling option with a strong yield and impressive returns. Take time to compare your options and conduct thorough research to make informed investment decisions that align with your financial goals.
Frequently Asked Questions
Exchange Income Corporation (EIF) is a diversified monthly payer with subsidiaries in manufacturing and aviation. It provides aerospace and aviation services, alongside manufacturing products like window wall systems and precision components.
The current dividend yield for Exchange Income Corporation is 3.245485602733041%. This yield reflects the company's commitment to providing regular income to its shareholders.
Over the past year, Exchange Income Corporation has shown a return of 57.25%. This strong performance highlights its growth and stability in the market.
Investing in monthly dividend stocks can carry risks such as market volatility, changes in interest rates, and potential reductions in dividend payments. It’s important to assess the financial health of the companies you invest in.
Exchange Income Corporation stands out with its diversified operations in both aviation and manufacturing, offering consistent monthly dividends. When comparing it to other dividend stocks, consider factors like yield, historical performance, and sector stability.
When selecting monthly dividend stocks, investors should consider the company's dividend yield, payout history, and overall financial health. It's also beneficial to look at industry trends and the company's growth potential.
