If you’re a long-term investor looking for robust and reliable income, you may want to consider investing in some quality Canadian dividend stocks. While recent hikes in interest rates have made traditional saving methods look attractive lately, the rates might not remain as high for very long. That means these traditional saving methods may not look as attractive as dividend stocks in the coming years.
In this article, I’ll explain how buying 2,000 shares of a fundamentally strong Canadian dividend stock could help you earn $116 per month in passive income.
A top Canadian dividend stock to buy now
While macroeconomic uncertainties have driven the stock market down in 2023 so far, some dividend stocks with solid financial bases are continuing to outperform the main TSX benchmark. One such attractive Canadian dividend stock is Dream Industrial REIT (TSX:DIR.UN).
The stock price of this industrial real estate-focused open-ended REIT (real estate investment trust) currently trades with more than 12% year-to-date gains at $13.11 per share. By comparison, the TSX Composite Index is up 1% in 2023. At the current market price, Dream Industrial offers a decent 5.3% annualized dividend yield and distributes its dividend payouts on a monthly basis.
Here are some key factors you should know before investing in Dream Industrial REIT.
Top factors to know before buying this stock
Besides a strong presence in its home market, Dream Industrial REIT had a strong portfolio of 321 industrial properties in key markets across the U.S. and Europe at the end of the March 2023 quarter. With this, its portfolio was worth about $7.8 billion and had a gross leasable area of around 70.4 million square feet. Including the REIT’s share of equity accounted investment, the committed occupancy rate at its properties stood solid at 98.6% at the end of the same quarter.
The underlying strength of its long-term financial growth trends could be understood by the fact that Dream Industrial’s revenue grew positively by 114% in five years between 2017 and 2022. More importantly, increasing rental income and portfolio expansion boosted its adjusted annual earnings by 605% during the same five-year period.
Also, Dream Industrial’s robust balance sheet and diversified tenant base, including some renowned global companies like Auchan, Amazon, and GVT Transport & Logistics, make this monthly dividend stock even more attractive to buy for income investors. These positive factors, along with the REIT’s consistent focus on new acquisitions, you can expect to earn healthy capital gains on your investments in the long term.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Dream Industrial REIT | $13.11 | 2,000 | $0.05833 | $116.66 | Monthly |
| Prices as of June 26, 2023 |
Bottom line
If your risk appetite allows you to buy 2,000 shares of Dream Industrial REIT, you can earn $116.66 per month in extra income from its dividends, which is equivalent to around $1,400 per year. To buy these many shares at the current market price, you’ll have to invest about $26,220 in this Canadian monthly dividend stock right now. But instead of relying on a single stock, it’s always ideal to diversify your dividend stock portfolio to be on the safer side and minimize your risks.
