Investing $10,000 in dividend-paying stocks can turn into a massive portfolio over time, especially when you reinvest those monthly dividends! Imagine this: every time you receive a dividend, instead of cashing out, you buy more shares. This means more dividends in the next cycle. The compounding effect can create a snowball of growth, allowing your initial investment to work harder for you. Over the years, with the power of reinvestment, that $10,000 could grow exponentially, thereby helping you reach your financial goals faster while enjoying the thrill of watching your money multiply! Here’s how to get started.
Consider Crombie
Crombie REIT (TSX:CRR.UN) focuses on high-quality retail and mixed-use properties across Canada. With a portfolio boasting well-known grocery stores, shops, and other essential services, Crombie real estate investment trust (REIT) offers investors a chance to tap into the steady income generated by these properties. It’s all about providing stability and growth. Thereby making it an appealing option for those looking to add a bit of real estate flair to their investment mix!
What sets Crombie apart is its strong track record of consistent dividend payments; Crombie REIT is, therefore, perfect for those seeking passive income. So, let’s look at how earnings support more growth.
Into earnings
Crombie REIT’s second-quarter 2024 results showcased impressive operational and financial performance that has investors smiling! The trust reported a 3.4% increase in same-asset property cash net operating income (NOI), indicating its properties are thriving. Even better, the renewal spreads were robust, with rents climbing 9.6% above expiring rates. Its committed occupancy held steady at 96.4%, reflecting a solid demand for its grocery-anchored portfolio. Plus, it made strategic moves by acquiring a new grocery-anchored property — all while also cashing in on the sale of another, demonstrating its savvy in capital allocation.
On the financial front, Crombie continues to shine, with a normalized funds from operations (FFO) per unit growth of 6.75%. A notable highlight is the positive trend change in their credit rating to BBB (low), signalling a strong financial condition and further enhancing investor confidence. It also invested significantly in development initiatives, pouring nearly $25,000 into modernization projects to unlock even more value.
Offering value
Crombie continues to shine as a compelling long-term monthly dividend stock, especially with its recent earnings performance! With a solid annual dividend yield of around 5.72%, investors can count on some reliable income flowing in each month. The trust has maintained a committed occupancy rate of 96.4% and showcased strong renewal spreads of 9.6% on leases, indicating a healthy demand for its grocery-anchored properties. These factors, along with their consistent efforts in modernization and strategic acquisitions, suggest that Crombie is well-positioned to grow its portfolio and, in turn, its dividends over time.
Despite a payout ratio that appears extremely high at 4,853.79%, Crombie’s financial metrics indicate a commitment to maintaining those dividends while navigating its debt strategically. With quarterly revenue growth of 4.20% and a notable increase in normalized FFO per unit, it seems like Crombie REIT is not just a reliable source of income but also a smart choice for long-term investors looking to build wealth through reinvested dividends. So, if you’re eyeing a steady monthly income, Crombie REIT might be a valuable addition to your portfolio!
Bottom line
So, how much could that $10,000 get you? Here’s what that might look like as of writing with just dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | PORTFOLIO TOTAL |
| CRR.UN | $15.65 | 639 | $0.89 | $568.71 | monthly | $10,000 |
That’s right, you’ll gain $568.71 in annual passive income — without even including returns! So, consider Crombie REIT today.
