Investment goals come in all shapes and sizes, but few feel as satisfying as building a portfolio that directly funds your lifestyle. If you want your investments to do the heavy lifting for your annual travel, you don’t need to buy speculative and fickle penny stocks anymore – invest in steady Canadian dividend stocks that generate reliable, recurring portfolio cash flow.
Choice Properties Real Estate Investment Trust (TSX: CHP.UN) is one of my favourite sources of passive income. Yielding a sturdy 5.2%, this Canadian REIT pays out distributions every single month, making it an ideal candidate to build an automated, dedicated “vacation fund.”
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An essential real estate-anchored passive income stream
Choice Properties is Canada’s largest REIT, boasting a portfolio of nearly 700 properties spanning over 68 million square feet of gross leasable area, valued at more than $18 billion.
The secret to its resilience lies in its defensive foundation. Approximately 83% of its portfolio is concentrated in necessity-based retail. Grocery titan Loblaw Companies serves as its principal anchor tenant, representing roughly 57% of gross rental revenue.
Regardless of economic downturns or inflation pressures, Canadians must buy food and essential household items. That non-negotiable consumer demand has allowed Choice Properties to maintain a stellar portfolio occupancy rate of 97.7% (at June 30, 2026) while consistently generating positive leasing spreads.
As a high-quality investment, Choice Properties REIT units trade at a premium to their most recent net asset value of $14.43 measured on June 30, 2026.
The December 15 & January 15 payout advantage
Unlike standard dividend stocks that pay quarterly, Choice Properties distributes cash every 30 days – arriving around the 15th of every month. This payment schedule provides a unique tactical advantage for Canadian travellers.
CHP.UN’s December 15 payout drops fresh cash as winter flight bookings, resort deposits, or holiday getaway expenses come due. Its January 15 payout hits your brokerage account right when post-holiday credit card statements arrive in the mail.
The remaining 10 monthly payouts steadily accumulate throughout the year, building a stress-free travel piggy bank.
With an Adjusted Funds From Operations (AFFO) payout ratio that comfortably averaged around 88% for 2025, and three consecutive years of distribution increases (the trust currently pays $0.065 per unit monthly, or $0.78 annualized), the REIT’s payout is well-covered by underlying operational cash flow.
Vacation investing with CHP.UN: How much would you need?
To see how investing in Choice Properties REIT units can help fund specific travel goals, here is how many units an investor would need at a recent unit price of $15.06.
Holding the indicative volume of units inside a Tax-Free Savings Account (TFSA) means 100% of every monthly distribution flows directly toward flight bookings and hotel stays – completely tax-free.
Foolish bottom line
Saving for vacations out of a regular paycheque can feel frustrating when everyday expenses eat into disposable income. Investors can effectively build passive income-generating portfolios around defensive Canadian dividend stocks that help finance lifestyles while preserving capital for retirement.
Choice Properties REIT offers a compelling way to quietly fund a trip every year for income investors seeking reliable monthly yields with a built-in holiday bonus.
That said, diversifying your investments across several TSX dividend stocks, and into other asset classes, like REITs, may reduce your total portfolio risk and make the investing journey much more exciting.
