The year 2023 will soon begin, but the roller coaster ride in the Canadian stock market doesn’t seem to be ending soon. After recovering nearly 11% in the previous two months, the TSX Composite Index has dived by 5.4% in December again. As the broader market sell-off hits stocks across industries, investors are now realizing the importance of having some fundamentally strong dividend stocks in their portfolio. These dividend payers can generate passive income even in a difficult economic environment. In this article, I’ll highlight one of the best dividend stocks in Canada you can buy right now to earn $200 in reliable monthly passive income for years.
A top Canadian dividend stock to generate monthly passive income
Whether you’re investing in dividend stocks or growth stocks, the basic rules of stock investing don’t change much. Primarily, you should always look for companies with a trustworthy business model and healthy track record of delivering strong returns to investors.
Keeping that in mind, Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) could be a great monthly dividend stock on the Toronto Stock Exchange. Now’s the time to consider this stock. The shares of this Toronto-headquartered open-ended REIT have plunged by more than 30% this year so far. At the time of writing, they are trading at $11.77 per share. Nonetheless, its financial growth trends are still positive, which should help it recover fast once the ongoing macroeconomic concerns start subsiding in the near future. Dream Industrial REIT currently has a market cap of $3 billion and an annual dividend yield of 5.9% at the current market price. More importantly, the real estate trust distributes its dividend payouts on a monthly basis.
Now, let me give you some key reasons why I find this TSX monthly dividend stock so attractive to hold for the long term.
Main reasons to buy this stock now
If you want to multiply your savings in a short period of time, then Dream Industrial REIT stock probably isn’t right for you. But if you’re looking to earn steady and consistent positive returns on your investments, then you might want to consider this TSX monthly dividend stock. Interestingly, this stock consistently delivered positive returns for six years in a row (even after excluding its dividends) before falling in 2022. This reliable performance showcases the underlying strength of its business model.
Dream Industrial REIT primarily focuses on managing and operating a large portfolio of 258 industrial assets globally. On a gross leasable area of nearly 46.5 million square feet, at the end of September, its committed occupancy rate stood solid at 99%. Some trustworthy companies like Auchan, Spectra Premium, TC Transcontinental, and DHL are top tenants by gross revenue. Moreover, Dream REIT actively focuses on new quality acquisitions to expand its global presence. Given all these growth-oriented factors, you can expect Dream Industrial REIT’s stock to outperform the broader market by a big margin in the long term.
|COMPANY||RECENT PRICE||NUMBER OF SHARES||DIVIDEND||TOTAL PAYOUT||FREQUENCY|
|Dream Industrial REIT||$11.77||3,429||$0.05833||$200||Monthly|
|Prices as of Dec 22, 2022|
If you want to earn $200 in monthly passive income from its dividends, you can buy 3,429 shares of Dream Industrial REIT now. To buy these many shares at the current market price, however, you’ll have to invest about $40,360 in the stock. This example should give you a good idea of how easily you can generate monthly passive income from dividend investing in Canada. Importantly, you must consider diversifying your portfolio instead of pouring such a big sum of cash into a single stock.