Written by Sneha Nahata at The Motley Fool Canada

Investing in stocks that offer dividends provides investors with a reliable and predictable income stream. This makes dividend-paying stocks especially beneficial for individuals aiming to generate extra cash.

Moreover, when a company pays dividends, it essentially shares its profits with investors. So, the best dividend-paying stocks are companies that are making more money over time, and this can contribute to a higher stock value. Thus, besides giving you a regular stream of money, stocks that pay dividends also have the chance to increase in value over time.

Fortunately, the TSX has several such fundamentally strong companies that have been delivering solid total shareholder returns (dividends plus appreciation in stock price). For instance, Fortis (TSX:FTS) and Enbridge (TSX:ENB) have been growing their dividends for decades and delivered double-digit average annual total shareholder returns over the past several years.

While Fortis and Enbridge are solid income stocks, they pay quarterly dividends. However, here I’ll focus on a stock that distributes dividends monthly, making it a top stock to earn extra monthly cash. Let’s delve into the stock.

A top stock to earn extra monthly cash

While the TSX has several monthly paying dividend stocks, investors can depend upon SmartCentres Real Estate Investment Trust (TSX:SRU.UN) to make extra cash. As a REIT (real estate investment trust), SmartCentres is obligated to distribute most of the earnings to its shareholders. Thus, investors can expect the company to consistently enhance their shareholders’ returns through regular payouts.

SmartCentres pays a monthly cash dividend of $0.154 per share. This translates into a lucrative yield of 8.18% (based on its closing price of $22.63 on November 13).

Against this backdrop, let’s explore the factors to understand why SmartCentres is a reliable investment choice for investors looking for a dependable monthly income and high yield.

Why bet on SmartCentres stock?

The primary reasons to buy SmartCentres stock are its reliable monthly payouts and compelling yield. These attributes stem from its ability to consistently generate solid adjusted funds from operations (AFFO).

Notably, SmartCentres is Canada’s largest fully integrated REIT. The firm owns 189 real estate properties (including 155 retail properties) in the country’s prominent locations, which drives demand, supports occupancy, and enables the company to generate strong AFFO. Overall, SmartCentres boasts an impressive 34.9 million square feet of gross leasable mixed-use space, which positions it well to generate strong financials.