In this market that continues to be quite volatile, it’s clear that finding a great dividend stock holds value. Yet even in any market condition, a great dividend stock is a winner to have on the books. After all, investors should try and remember that it’s not about timing the market when investing. Instead, it’s about time in the market.
That’s why today I’m going to discuss a dividend stock investors can buy and hold forever. In that time, it will bring you monthly cash in the form of dividends. However, you can also look forward to strong returns as well. So, let’s get into it.
Go industrial
When it comes to finding safe, long-term dividend stocks paying monthly, I love looking at industrial real estate investment trusts (REITs). These companies have such a strong future and a stable past. That’s because industrial properties encompass essential properties that will be around for the foreseeable future.
These include the warehouses needed to store and ship products we need with a quick turnaround, the assembly lines to make everything from cars to dishwashers, and even storage facilities and other elements of the production of goods.
Because of this, these properties have many benefits. They are stable thanks to long-term contracts, as well as only really needing one or two tenants. But they’re also stable when looking at their future. As industrial properties will continue to be needed no matter what happens in the world, these are stable stocks to continue picking up.
Nexus REIT
Of these industrial properties, Nexus Industrial REIT (TSX: NXR.UN) is a strong choice right now. The company offers huge value, trading at just 4.32 times earnings as of writing. And it’s a monthly dividend stock as well, offering a yield of 8.53% as of writing.
What’s more, the company is a steal. It trades down 27% in the last year, but in the last month, as the market has shown a recovery, it is up 14%. And with a payout ratio of just 36%, that dividend looks incredibly safe.
As for its earnings report, the company showed more signs of strength. It purchased property in London, Ontario, for $55.8 million. It also increased its credit facilities from $375 million to $525 million. It maintained a 97% occupancy rate, with a net operating income of $29.3 million, up 17.9% year over year. So, as there continues to be increases, investors should certainly take note of this recovery.
Analysts already are
Nexus REIT and its recovery have already caught the eye of analysts after a strong earnings report. Whether they believe the stock will perform with the rest of the sector or outperform, most analysts peg the stock’s share price as higher than the current $7.50 as of writing.
The company continues to make progress in scaling and upgrading its portfolio. While higher interest rates and leverage certainly have made an impact, this is a short-term issue for long-term holders. That’s why its hedging program will provide relief and allow for an optimistic future for those getting in on this monthly dividend stock now.
For now, investors can look forward to an absurdly high dividend yield and a safe future from this industrial stock. One that will provide you with income every month for as long as you hold it.
