Top Canadian REITs for Dividend Income

Looking for monthly dividend income from Canadian real estate stocks? These Canadian REITs offer exposure to apartments, shopping centres, industrial properties and commercial real estate, with distribution yields ranging from around 4% to over 7% for several established options.

Real estate investment trusts (REITs) can be attractive for income-focused investors because they collect rent from properties and distribute income to unitholders. However, a high dividend yield does not automatically mean a stock is a good investment.

Here are some of the top Canadian REITs to research for dividend income in October 2026, including their recent stock prices, estimated distribution yields and key risks.

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Best Canadian REITs for Dividend Income: Quick Comparison

The following prices are recent October 2026 market observations, mainly from October 12–16. Yields are approximate and can change as unit prices and distributions change.

Canadian REIT	TSX Ticker	Recent Price (CAD)	Approx. Annual Yield
SmartCentres REIT	SRU.UN	$26.31	7.03%
H&R REIT	HR.UN	$9.72	6.18%
Crombie REIT	CRR.UN	$15.68	5.77%
RioCan REIT	REI.UN	$20.62	5.62%
CT REIT	CRT.UN	$17.23	5.57%
Dream Industrial REIT	DIR.UN	$12.76	5.51%
Choice Properties REIT	CHP.UN	$14.78	5.25%
Canadian Apartment Properties REIT	CAR.UN	$31.14	5.00%
Killam Apartment REIT	KMP.UN	$17.07	4.22%
Granite REIT	GRT.UN	$83.72	4.21%

Source: DividendListing’s Canadian REIT market data, with prices observed October 12–14, 2026. Yields are approximate trailing distribution yields, not guaranteed future returns. Prices may differ from live quotes.

1. SmartCentres REIT (TSX: SRU.UN)

Recent price: $26.31
Approximate annual distribution yield: 7.03%
Distribution frequency: Monthly

SmartCentres REIT is one of Canada’s major retail-focused real estate investment trusts. Its portfolio includes shopping centres and other commercial properties, with Walmart serving as an important anchor tenant at many locations.

The company’s retail properties benefit from locations designed to attract regular consumer traffic. Its portfolio also includes development opportunities that could support future growth.

Why consider SmartCentres REIT?

• A relatively high distribution yield among established Canadian REITs.
• Monthly income payments for investors.
• Exposure to retail real estate and long-term property development opportunities.

What are the risks?

Retail property performance depends on tenant demand, rental growth and consumer activity. Development projects also require capital, while borrowing costs can affect profitability.

Best suited for: Investors seeking higher monthly income from retail real estate who are comfortable with property-sector risks.

2. H&R REIT (TSX: HR.UN)

Recent price: $9.72
Approximate annual distribution yield: 6.18%
Distribution frequency: Monthly

H&R REIT owns a diversified portfolio of real estate assets, including industrial, residential and commercial properties. The trust has been reshaping its portfolio over time, making its property mix and capital-allocation decisions important factors for investors to monitor.

At its recent price, H&R offers a relatively high indicated income yield compared with many Canadian REITs.

Why consider H&R REIT?

• Exposure to multiple real estate property types.
• Monthly distributions.
• Potential upside if portfolio changes and property operations improve.

What are the risks?

Investors should review its debt, property valuations, leasing performance and distribution coverage. Its historical distribution record has also changed, so buyers should not assume that past payments will continue unchanged.

Best suited for: Income investors willing to examine a more complex real estate portfolio rather than selecting a REIT based on yield alone.

3. Crombie REIT (TSX: CRR.UN)

Recent price: $15.68
Approximate annual distribution yield: 5.77%
Distribution frequency: Monthly

Crombie REIT focuses on grocery-anchored shopping centres, retail properties and other commercial real estate across Canada. Its relationship with Empire Company and its grocery-related tenant exposure are important parts of its business profile.

Grocery-anchored properties can benefit from recurring consumer demand because people regularly visit supermarkets regardless of broader economic conditions.

Why consider Crombie REIT?

• Exposure to grocery-anchored retail properties.
• Monthly distribution payments.
• A portfolio tied to everyday consumer needs.

What are the risks?

Grocery-anchored retail is not risk-free. Property expenses, financing costs, tenant concentration and the performance of individual locations can all affect results.

Best suited for: Investors seeking monthly income from retail properties with an emphasis on essential shopping destinations.

4. RioCan REIT (TSX: REI.UN)

Recent price: $20.62
Approximate annual distribution yield: 5.62%
Distribution frequency: Monthly

RioCan is one of Canada’s established real estate investment trusts, with a portfolio focused on retail and mixed-use properties in major Canadian markets.

Its properties serve everyday shopping needs, while selected developments combine retail space with residential uses. This gives investors exposure to both established rental properties and potential development-related growth.

RioCan’s declared monthly distribution was $0.0965 per unit during 2026. At that rate, the annualized distribution is $1.158 per unit, although the amount paid over a full year can change.

Why consider RioCan REIT?

• Established Canadian retail and mixed-use property portfolio.
• Monthly cash distributions.
• Potential benefits from rental growth and development activity.

What are the risks?

Development projects can require significant capital, and commercial property valuations can be sensitive to interest rates. Investors should also check occupancy, rental spreads and funds available for distribution.

Best suited for: Investors seeking a balance of recurring rental income and potential long-term property growth.

5. CT REIT (TSX: CRT.UN)

Recent price: $17.23
Approximate annual distribution yield: 5.57%
Distribution frequency: Monthly

CT REIT owns income-producing commercial properties, with Canadian Tire Corporation and related retail operations playing a central role in its tenant base.

Its portfolio includes Canadian Tire stores, distribution centres and other commercial properties. The relationship with a large national retailer provides a distinctive business model compared with REITs that rely on many unrelated tenants.

CT REIT announced a 3.5% increase in its monthly distribution in May 2026, beginning with the July payment. The monthly distribution increased to $0.0818 per unit, equivalent to approximately $0.9816 annually if maintained.

Why consider CT REIT?

• Monthly distributions.
• A long-term relationship with a major Canadian retail group.
• A recent distribution increase.

What are the risks?

Tenant concentration is an important consideration. Investors should assess the financial strength of key tenants, the trust’s debt obligations and its ability to fund future distributions.

Best suited for: Investors who prefer a retail-property REIT with a clearly defined anchor tenant relationship.

6. Dream Industrial REIT (TSX: DIR.UN)

Recent price: $12.76
Approximate annual distribution yield: 5.51%
Distribution frequency: Monthly

Dream Industrial REIT invests in industrial properties, including warehouses, logistics facilities and distribution buildings.

Industrial real estate plays an important role in supply chains, e-commerce, manufacturing and the storage of goods. Demand for well-located industrial space can support rental income, although conditions differ by market and property type.

Why consider Dream Industrial REIT?

• Exposure to warehouses and logistics real estate.
• Monthly distributions.
• Potential benefits from leasing activity and rental growth.

What are the risks?

Industrial property values can be affected by economic growth, tenant demand, construction activity and financing costs. Investors should examine occupancy rates, lease expirations and debt maturities.

Best suited for: Investors looking for industrial real estate exposure rather than relying entirely on retail or residential properties.

7. Choice Properties REIT (TSX: CHP.UN)

Recent price: $14.78
Approximate annual distribution yield: 5.25%
Distribution frequency: Monthly

Choice Properties REIT owns and manages a portfolio of retail, industrial and mixed-use properties. Loblaw-related grocery and retail locations are a significant part of its business.

Properties linked to grocery stores and essential retail can provide relatively recurring rental income. Choice also has opportunities to develop or intensify selected properties.

Why consider Choice Properties REIT?

• Exposure to grocery-anchored and other commercial properties.
• Monthly distribution payments.
• A portfolio connected to established Canadian retail operations.

What are the risks?

Investors should monitor tenant concentration, debt levels, development spending and distribution coverage. Even a property portfolio anchored by essential retail is exposed to interest rates and real estate market conditions.

Best suited for: Investors seeking monthly income from a portfolio with substantial grocery-related real estate exposure.

8. Canadian Apartment Properties REIT (TSX: CAR.UN)

Recent price: $31.14
Approximate annual distribution yield: 5.00%
Distribution frequency: Monthly

Canadian Apartment Properties REIT, commonly known as CAPREIT, owns residential rental properties in Canada and selected international markets.

Residential REITs generate rental income from tenants rather than relying primarily on shopping centres or office leases. Demand for housing can provide a durable source of revenue, although rent growth, occupancy and operating expenses vary by market.

Why consider CAPREIT?

• Exposure to residential rental housing.
• Monthly distributions.
• Diversification away from commercial retail properties.

What are the risks?

Residential real estate is affected by interest rates, maintenance costs, rent regulation and local housing-market conditions. Investors should also consider changes in occupancy and the trust’s financing requirements.

Best suited for: Investors who want residential rental exposure alongside income from commercial REITs.

9. Killam Apartment REIT (TSX: KMP.UN)

Recent price: $17.07
Approximate annual distribution yield: 4.22%
Distribution frequency: Monthly

Killam Apartment REIT owns apartments and manufactured-home communities, with a significant presence in Atlantic Canada and other Canadian markets.

Its regional exposure makes it particularly relevant for investors who want to understand the economics of Canadian rental housing beyond Toronto and Vancouver.

Why consider Killam?

• Residential rental income.
• Monthly distributions.
• Exposure to apartment markets in Atlantic Canada and elsewhere.

What are the risks?

Rental growth depends on local market conditions, affordability, vacancy rates and applicable rental regulations. Property maintenance and financing costs can also affect cash flow.

Best suited for: Investors looking for residential real estate income and geographic diversification within Canada.

10. Granite REIT (TSX: GRT.UN)

Recent price: $83.72
Approximate annual distribution yield: 4.21%
Distribution frequency: Monthly

Granite REIT owns industrial, logistics and other specialized properties. Its portfolio includes facilities serving manufacturing and distribution operations.

Although its yield is lower than some of the other REITs on this list, Granite may appeal to investors who prioritize industrial real estate exposure and potential distribution growth over the highest immediate income.

Why consider Granite REIT?

• Exposure to industrial and logistics properties.
• Monthly distributions.
• A history of distribution growth.

What are the risks?

Industrial real estate depends on tenant demand, lease renewals, property valuations and financing conditions. Investors should examine tenant concentration and the trust’s ability to grow cash flow per unit.

Best suited for: Investors who want industrial real estate exposure and are willing to accept a lower current yield.

How Much Dividend Income Can You Generate From Canadian REITs?

Your income depends on the amount invested and the distribution yield. The following examples use illustrative annual yields and assume the distributions remain unchanged.

Investment	4.5% Yield	5.5% Yield	7% Yield
$1,000	$45/year	$55/year	$70/year
$5,000	$225/year	$275/year	$350/year
$10,000	$450/year	$550/year	$700/year
$25,000	$1,125/year	$1,375/year	$1,750/year
$50,000	$2,250/year	$2,750/year	$3,500/year

These are estimates before taxes, trading fees and any changes to distributions. Monthly-paying REITs can provide more regular cash flow, but monthly payments do not make the income guaranteed.

For example, a $10,000 investment at a 5.5% annual distribution yield would generate approximately $550 per year, or $45.83 per month on average.

How to Choose the Best Canadian REIT for Dividend Income

A high yield is only one part of the decision. Before investing, consider these five factors:

1. Distribution coverage: Review funds from operations (FFO) and adjusted funds from operations (AFFO). These measures help investors assess whether recurring property cash flow supports distributions.

2. Debt and interest costs: REITs often borrow to acquire and develop properties. High debt or refinancing at higher rates can reduce cash available for distributions.

3. Property type: Retail, industrial and residential real estate have different risks. Diversifying across property types can reduce reliance on one part of the real estate market.

4. Distribution history: Check whether distributions have grown, remained stable or been reduced. Past increases are not a promise of future growth.

5. Valuation: Compare the unit price with operating cash flow, net asset value, debt and the quality of the underlying properties. A falling share price can make a yield look unusually high because the market expects trouble.

Are Canadian REIT Dividends Taxable?

Canadian REIT distributions are not necessarily treated the same way as ordinary eligible dividends from Canadian corporations.

Depending on the trust and the tax year, distributions may include rental income, other income, capital gains or return of capital. The tax treatment depends on the components reported by the REIT and the type of account holding the investment.

In a non-registered account, consult the REIT’s annual tax information and your T3 slip. In a TFSA or RRSP, different tax rules apply, and the account’s eligibility and treatment should be checked before investing.

Final Thoughts

Canadian REITs can be useful for investors seeking recurring income and exposure to real estate without buying properties directly.

For a starting shortlist, SmartCentres and H&R offer higher indicated yields, while RioCan, CT REIT and Choice Properties provide exposure to established retail-related portfolios. Dream Industrial and Granite offer industrial real estate exposure, while CAPREIT and Killam provide residential diversification.

There is no single best Canadian REIT for every investor. Compare distribution coverage, debt, property quality, valuation and your own income goals before buying.

Disclaimer: This article is for educational purposes only and is not financial advice. Market prices and yields change, and distributions can be reduced or suspended. Always conduct your own research before investing.