Investors these days have heard a lot about what the future might hold. That there could be a recession. That prices are great for many stocks right now and could rise in the near future. Even that you could get rich by investing in some stocks now and holding them for a decade — especially if you consider a dividend stock.
All this isn’t false, and, in some cases, these predictions are quite likely. But none of these predictions help you right now. You need cash in your pocket, especially as inflation and interest rates remain elevated. For Canadians looking to get some extra help, you need a dividend stock that can start paying right away. Today, we’re going to look at one solid option and what that could get you.
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Slate Grocery REIT
Slate Grocery REIT (TSX: SGR.UN) shares remain down in 2023. The grocery-anchored real estate investment trust (REIT) continues to drop, as earnings fall below estimates; however, analysts believe it remains a stable investment — especially for long-term investors who want stellar returns.
But again, we’re not just thinking about the future. That future does look bright, with the company investing in grocery chains across the United States. But what you’re getting right now is a great deal on a great dividend stock.
Compared to its peers, with price-to-earnings (P/E) ratios on average closer to 20, Slate stock looks like a steal. It currently trades at 6.82 times earnings, as of writing, and offers a substantially higher 9.07% dividend yield compared to peers.
So, even though shares are down 13% in the last year, there is little room to drop further. And you can therefore bring in a very high dividend yield, look forward to returns, but also receive passive income from the dividend stock while you wait.
What to consider when investing
I’m not saying that investors should suddenly take out all their investments and put it in this stock. Far from it. Instead, continue doing what you’re doing with those stocks and use the cash you have set aside for investments to put towards Slate stock.
Let’s say you have $15,000 in funds to play with. You could put that towards Slate stock and receive strong passive income from the dividend stock these days. Here is what that could look like as of writing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY |
| SGR.UN | $12.75 | 1,176 | $1.15 | $1,352.40 | Monthly |
That total of $1,352.40 annually then comes to monthly payments of $112.70 as of writing! So, that passive income in your pocket each month right now. You can use that to reinvest or use it to cover bills. But what you can then look forward to are more returns in your future when the stock rises — all while receiving income for your patience. Should Slate stock reach 52-week highs in the next year, that would be a potential upside of 28% as of writing! This would turn your $15,000 into $19,200 as of writing, with returns of $4,200 in your portfolio.
