Make $275 a Month in Passive Income With 1 Solid Stock

For income-hungry investors looking for a growth stock and high dividends, it doesn’t get much better than WPT Industrial Real Estate Investment Trust (TSX:WIR.U).

| More on:
edit Balloon shaped as a heart

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

If you’re one of the many Canadians who opened a Tax-Free Savings Account (TFSA) a decade ago this year, I don’t have to tell you how great the program is. But for those of you who are still humming and hawing about whether to keep your cash in your savings or start up this account, let me convince you with one phrase:

Free money.

This isn’t a joke, and it’s not like one of those game shows where you win $10,000 and walk away with $5,000 after taxes. No, if you invest in a reliable stock with a strong, stable monthly dividend, that dividend will give you money no matter what happens to your shares. They go up, they go down, and there remains that reliable dividend coming into your account month after month. The best part, because it’s in your TFSA, you won’t have to worry about the government taking even one dime back from what you’ve made.

Those dividend funds don’t have to be small either. If you choose the right stock, you can receive as much as $275 every month to pay groceries, bills, or put away from that dream vacation. And to get there, the simplest and most reliable way it to choose a real estate investment trust (REIT) with a dividend yield higher than 5.5%.

The ideal candidate I’ve found is also one that has a strong chance to skyrocket in share price over the next decade. WPT Industrial Real Estate Investment Trust (TSX:WIR.U) focuses on a sub-industry that is about to see a lot of growth in the coming years. This comes from the substantial increase in e-commerce and online shopping, where businesses will need a place for logistics and distribution centres. In fact, retail industry analysts expect e-commerce sales to increase by US$1.2 trillion between the end of 2018 and into 2020. That’s an enormous opportunity for a REIT like WPT.

WPT is a young stock, which means it’s in an ideal place for investors to get in before both the industrial properties industry and the stock itself seriously take off. Meanwhile, WPT is growing on a large scale, already owning 70 light industrial properties across the United States, with an incredibly impressive occupancy rate of 99.1%.

On top of that, as the company completes acquisitions, those new properties will add to WPT’s strong bottom line. In its latest quarter, the company reported an increase of 3.4% year over year in net operating income.

While the stock is fairly valued at the moment, analysts predict the stock will be on the rise in the next few years, reaching about $15 per share in the next 12 months. That makes this stock a rare opportunity for investors looking for growth in a new industry, which is hard to find among REITs.

Then, of course, there’s that dividend of 5.58% at the time of writing, which is paid out monthly at $0.063 per share. To take advantage of this stock and receive $275 per month, that would mean investors would need to invest $60,150 at the time of writing.

Foolish takeaway

WPT has it all when it comes to a reliable dividend stock. It’s in an area of rapid expansion, it’s in a period of growth, and it has a dividend yield that will likely only increase as the company continues to perform well. As e-commerce providers seek more and more space, WPT will be among the few that can offer it up to the growing industry.

For the investor that’s looking for a strong source of income and wants their stock to consistently over perform, WPT is the ideal candidate for your TFSA.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.

More on Dividend Stocks

Happy family father of mother and child daughter launch a kite on nature at sunset
Dividend Stocks

Parents: Here’s Every Credit and Benefit You Can Claim From the CRA

Parents have it hard already, so make sure the CRA is doing everything for you by dishing out payments you're…

Read more »

edit Colleagues chat over ketchup chips
Dividend Stocks

3 Canadian Dividend Stocks to Buy and Hold for Life

These dividend-paying stocks have solid earnings base to support their payouts for decades.

Read more »

A golden egg in a nest
Dividend Stocks

Create a Million-Dollar TFSA With Just $1,000

If you have a TFSA, you can easily make a million-dollar portfolio by investing on a consistent basis in this…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Canadian Stocks With Over 6% of Dividend Yield

Boost your passive income with three safe dividend stocks.

Read more »

TFSA and coins
Dividend Stocks

TFSA Pension: 2 TSX Dividend Stocks to Buy Now and Hold for Decades

These top TSX stocks pay great dividends and look cheap to buy right now for a TFSA retirement fund.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

TFSA Dividend Income: 2 TSX Stocks to Buy on the Pullback

These TSX stocks look oversold and pay attractive dividends that continue to grow.

Read more »

oil tank at night
Dividend Stocks

1 Top TSX Energy Stocks for Summer 2022

TSX energy stocks have tanked recently, but they could enjoy a nice summer rally. Here's one top stock I'm eyeing…

Read more »

TIMER SAYING TIME FOR ACTION
Dividend Stocks

Market Correction: 2 Cheap TSX Dividend Stocks to Buy Now for a Self-Directed RRSP

These top TSX dividend stocks look cheap right now for a self-directed RRSP focused on total returns.

Read more »