Investors looking for steady cash flow in 2026 are increasingly turning to monthly dividend stocks, especially those trading on the TSX with yields above 5%. Monthly payouts can be attractive for retirees or income-focused investors because they smooth cash flow and reduce the need to sell assets during volatile markets. While high yields always require scrutiny, a few Canadian dividend payers stand out for balancing income with business stability.

One standout in the monthly dividend space is SmartCentres REIT (SRU.UN). This large Canadian real estate investment trust focuses on retail-anchored and mixed-use properties, many tied to essential tenants such as grocery stores and big-box retailers. Despite pressure on commercial real estate in recent years, SmartCentres has continued to generate dependable rental income. Management has strengthened the balance sheet through asset sales and refinancing, helping support a dividend yield comfortably above 5%.

Another popular monthly dividend payer comes from the energy infrastructure sector: Pembina Pipeline (PPL). Pembina operates critical assets including pipelines, storage, and processing facilities that support long-term energy demand. Its largely fee-based revenue model limits exposure to short-term commodity price swings, resulting in predictable cash flows. Long-term contracts provide visibility, allowing the company to sustain its monthly dividend while funding growth projects and reducing debt.

Also Read: Long term investing in Canada

Rounding out the list is Diversified Royalty Corp. (DIV), a diversified income trust with exposure to royalties from retail, industrial, and service-based businesses. Its broad customer base helps stabilize cash flow during economic slowdowns. While growth is modest, consistency is the key appeal here. The monthly distribution, yielding over 5%, is supported by disciplined capital management and a conservative payout structure.

Also Read: Dividend paying stocks Canada

Overall, SmartCentres REIT, Pembina Pipeline, and Diversified Royalty Corp. highlight how monthly income investing can still work in 2026. They aren’t risk-free, but for long-term investors seeking predictable cash flow, they offer a solid blend of yield, stability, and diversification.