This 8% Dividend Stock Pays Cash Every Month!

This dividend stock can give you not just passive income from dividends, but also from returns expected in the next year.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published November 23, 2023 3:30 pm EST

| More on: SRU.UN

The TSX today remains above the $20,000 mark, with more and more positive data coming out from governments around the world. This means it could indeed be the end of the rise of inflation and interest rates. And that could also mark the beginning of the end of a bear market. This is why it’s time to hunt for a great dividend stock.

Today, we’re going to focus on a monthly dividend stock that’s going to get you through this bear market. One that will have you come out strong on the other side. How do I know? It’s already seeing some positivity.

Consider SmartCentres

SmartCentres REIT (TSX:SRU.UN) was certainly one of the dividend stocks hit hard during the last few years. Whether it was its place as a retail real estate investment trust (REIT) during the pandemic, or during a bear market, it wasn’t doing well.

Yet that seems to be changing. Shares jumped by almost 14% after the company reported its recent third-quarter earnings just about two weeks ago. The company continued to build on the strength gained during the second quarter, with leasing activity increasing to a committed occupancy rate of 98.5%.

There were increases across the board for SmartCentres stock as well. The dividend stock saw same-property net operating income increase 1.9% to $2.6 million, with net rental income up 2.3% as well. Funds from operations (FFO) increased to $0.55 per unit from $0.49 the year before as well. So, all in all, it was a great quarter, and investors saw that.

More to come?

SmartCentres stock also reported during the quarter that there are major developments still underway. This included rental apartments near completion, occupancy and condo closings that generated $6.9 million in FFO, and the beginning of another condo build.

“In addition to the strength of our core recurring retail income, our mixed-use development program also continues to grow and deliver strong results. We are delighted with the progress we have made on our Transit City 4 & 5 condominium projects at the Vaughan Metropolitan Centre. During the quarter, we closed on an additional 274 units in Transit City 4 & 5, and the remaining 106 units at these two towers are expected to close by the end of this year.”
Mitchell Goldhar, chief executive officer of SmartCentres

So, with growth already on the way, there is still time to get in on this great dividend stock. In fact, you could receive quite a lot of passive income each and every month.

How much?

If you’re looking for monthly passive income, then now is the time to get in on this dividend stock. SmartCentres stock trades at just 8.06 times earnings, with an 8.04% dividend yield that comes to $1.85 per share annually. Plus, there is a potential upside of 26% to reach former 52-week highs.

So, here is what that could get you from a $5,000 investment if that happens.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	PORTFOLIO TOTAL
SRU.UN – now	$23	217	$1.85	$401.45	monthly	$5,000
SRU.UN – highs	$29	217	$1.85	$401.45	monthly	$6,293

Investors have now created returns of $1,293 and dividend income of $401.45. Put together, that’s total passive income of $1,694.45. And on a monthly basis? You can look forward to $141.20 each and every month.