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.

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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.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
SRU.UN – now$23217$1.85$401.45monthly$5,000
SRU.UN – highs$29217$1.85$401.45monthly$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.

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 SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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