Need $5,000? Get it Today From This Canadian Stock

This Canadian stock offers stability through its investments, and consistent growth even in a market downturn. And yet, it’s an incredible deal.

| More on:

Image source: Getty Images

Canadians have been working hard this year to make ends meet. Inflation keeps rising, as do interest rates, and I’m sure you’re sick of hearing about it. But, if you’re looking to generate cash flow, it’s important that you arm yourself with knowledge.

We could all use some extra cash, which is why today I’m going to focus on one Canadian stock in particular. This stock can bring in $5,000 of passive income this year if you invest right now. That’s $5,000 pretty much guaranteed, connected only to the dividend and nothing else. And with the economy rebounding, you can eventually look forward to even more.

So let’s get into this Canadian stock, and look at why it’s one everyone should hold.

Granite REIT

Granite REIT (TSX:GRT.UN) doesn’t have the highest dividend, the highest returns, or the largest portfolio. But it does offer something great: stability. That stability comes from its investments in industrial, warehouse, and logistics properties.

If you were to look at the company’s performance over the last few months, you’d have no idea there’s been a market downturn. And I mean this in several ways. Granite has become the Canadian stock to beat in the industrial property industry. These properties are sorely needed right now during a time of severe supply constraints. Further, they’re incredibly cheap to run. So the company can pretty much sit back, collect cash, and use it to buy more properties.

Which it has. During the last quarter, Granite closed $193.6 million in acquisitions. Same property net operating income also increased by 4.6% year-over-year, with funds from operations up to $1.05 per unit from $0.93 per unit. All that to say this Canadian stock is not just holding steady, but growing.

Still cheap

This Canadian stock, however, has been beaten down due to the economy. Shares are down 22.5% year-to-date at the time of this writing. Even still, that’s an improvement. Over the last few weeks, shares are up about 10%.

So now could be a great time to get in on this consistent growth. Especially as the Canadian stock remains so incredibly cheap. Granite currently trades at just 3.02 times earnings. It also offers 0.92 times book value. All while holding a stable 4.02% dividend yield.

That passive income is paid out monthly to investors of the Canadian stock, and has grown at a compound annual growth rate (CAGR) of about 3.96% over the last decade. Its shares are up 232% in that time, for a CAGR of 13.36%.

Make that $5K

How can this Canadian stock bring you $5,000 this year? Let’s break it down. With a dividend of $3.10 per year, that would mean you need to buy 1,613 shares. Shares cost about $80 right now, so you’re looking at an investment of $129,040. Sure, it’s a lot. But remember, these gains aren’t even connected to how the company’s shares perform. So if it were to return to pre-fall prices, that $129,040 could turn into $169,365!

And let’s not forget we should be holding this stock long term. So if you were to hold Granite for another decade and see the same growth, that’s when things really get interesting. Based on historical movement and reinvesting dividends, your portfolio could be worth $577,739! All while bringing in that sweet passive income.

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. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST.

More on Dividend Stocks

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »

Payday ringed on a calendar
Dividend Stocks

3 Dividend Stocks That Pay Me More Than $54.57 Per Month

These three dividend stocks have done me well over the years, so let's look at how much I've gotten in…

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Royalty: 3 Fabulous Stocks to Buy Now for Decades of Passive Income

Rogers Communications stock and Canadian Natural Resources stock could pay you dividends for decades to come.

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

For growth and dividends this April, look to these two REITs that have quite the promising present as well as…

Read more »