This 10.72% Dividend Stock Pays Cash Every Month

This dividend stock remains a consistent, defensive dividend producer that will give up over 10% in income each and every month.

Amy Legate-Wolfe

Author Bio 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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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. Social Media 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 June 21, 2024 4:40 pm EDT

Are you looking for cash flow? Monthly dividend payments provide a steady and predictable income stream. This is particularly beneficial for retirees or those relying on investment income to cover living expenses, as it aligns better with monthly budgeting needs compared to quarterly or annual payouts.

That’s why today, we’re going to focus on Slate Grocery REIT (TSX: SGR.UN), which provides investors with monthly dividends at a yield of 10.72% as of writing.

So, let’s get into why this stock is a prime choice on the TSX today.

That juicy yield

First, the obvious. Slate Grocery REIT offers a high dividend yield of 10.72%, which is appealing for income-focused investors seeking stable and high returns on their investments. This yield is significantly higher than the average yield in the REIT sector, providing an opportunity for enhanced income.

Despite offering a high yield, Slate Grocery REIT has a history of maintaining sustainable dividend payouts. This is achieved through careful financial management, maintaining a healthy balance sheet, and ensuring that payout ratios are within manageable limits.

A strong history

What’s more, Slate Grocery REIT has shown a track record of consistent performance. Historically, the real estate investment trust (REIT) has managed to maintain its dividend payouts, which reflects the stability and reliability of its income-generating assets. This consistency is crucial for investors looking for dependable income sources.

The REIT has reported strong earnings in the past, indicating robust financial health. This has included consistent rental income from its portfolio of grocery-anchored properties. It also has been maintaining high occupancy rates, which ensures steady cash flow. Furthermore, it offers positive growth in NOI, demonstrating effective property management and rental income growth.

Future defence

What’s more, Slate Grocery REIT’s portfolio primarily consists of grocery-anchored properties. Grocery stores are considered essential businesses, which means they tend to perform well even during economic downturns. This defensive nature of the portfolio adds a layer of security to the investment, as grocery stores generally maintain stable operations and foot traffic regardless of economic conditions.

And the future looks strong. This comes from the potential for portfolio expansion through acquisitions of additional grocery-anchored properties, which could further enhance revenue and income. Slate stock also should see increasing urbanization, and consumer preference for conveniently located grocery stores is likely to sustain demand for the REIT’s properties. Also, the strategic adaptation to e-commerce trends by incorporating online order fulfillment capabilities in their properties, catering to the evolving retail landscape.

But above all, it holds a strong market positive. Slate Grocery REIT holds a strong position in the market due to its focus on necessity-based retail properties. This niche market position provides a competitive edge, as demand for grocery-anchored properties remains relatively inelastic.

Bottom line

Right now, the dividend stock could bring in significant income even from a $1,000 investment. In fact, here’s what you could earn on the TSX today from that investment.