Invest $9,000 in This Dividend Stock for $59.21 in Monthly Passive Income

Monthly passive income can be an excellent way to easily increase your over income over time. And here is a top choice to get started.

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 14, 2024 9:00 pm EST

| More on: PRV.UN

Creating monthly passive income with a $9,000 investment can be a brilliant way to kickstart a consistent revenue stream without constantly monitoring the market or timing trades. Passive income means the possibility of regular cash flow. Even when the market is volatile or when you’re busy with other things. The appeal is the freedom it gives you to plan financially, knowing there’s a monthly deposit into your account. This approach is ideal if you want to supplement income or reinvest your dividends for long-term growth. Today, let’s look at a great way to get started.

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PRO REIT

One stock that shines in the monthly passive income space is PRO Real Estate Investment Trust (TSX:PRV.UN). As a real estate investment trust (REIT), it’s designed to generate steady income from its portfolio of real estate assets. This includes industrial properties that are largely immune to short-term market fluctuations. PRV.UN currently offers a solid dividend yield of around 7.95%, making it a high-income option. With your $9,000 investment, you’d start seeing monthly dividends that can provide either extra cash flow or fuel for reinvestment.

The latest earnings report from PRO REIT reveals the company’s resilience. For the third quarter (Q3) of 2024, property revenue was stable at $24 million despite the sale of non-core properties, showcasing the REIT’s adaptability. Net operating income (NOI) grew by 1.5% year over year, reflecting efficient management. Occupancy is strong, too, with 97.2% of gross leasable area occupied, underscoring the trust’s commitment to maintaining a high occupancy rate.

What’s impressive about PRO REIT is its strategic focus. In 2024, the REIT sold non-core office properties, raising $71.2 million, which was redirected to industrial assets. This pivot to industrial real estate, which now accounts for 86% of the portfolio’s GLA, positions the trust well for the future. Industrial properties have stable demand, particularly in high-traffic areas like near Montreal-Trudeau International Airport. Where PRV.UN recently acquired an industrial building leased to a national logistics company.

Safe and stable

With a beta of 1.75, PRO REIT may be a bit more sensitive to market fluctuations. Yet its portfolio adjustments have aimed to minimize this risk. This strategic move towards industrial properties supports a consistent revenue base and potentially shields it from market swings. Its current share price, hovering at $5.69, also offers a chance to buy in at a reasonable valuation relative to book value.

One factor that adds to PRO REIT’s allure is its dividend track record. It has maintained a steady dividend payout with a forward annual dividend of $0.45, aligned with the industry’s stable income distribution practice. And with a payout ratio of 323.28%, this REIT prioritizes delivering returns to its shareholders. For a passive-income investor, knowing that dividends are a priority provides a reassuring layer of predictability. So, how much could that $9,000 investment bring in? Let’s look at it based on today’s dividend.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	INVESTMENT
PRV.UN	$5.70	1,579	$0.45	$710.55	monthly	$9,000

Bottom line

As you can see, investors can bring in an annual income of $710.55 from this dividend stock. That comes down to $59.21 each and every month!

For long-term passive-income seekers, PRO REIT’s future outlook is promising. Its shift toward industrial properties in areas with strong economic fundamentals suggests a forward-thinking approach to portfolio stability. Industrial properties generally offer lower vacancy risks, adding to the reliability of your monthly income stream. This strategic positioning can be advantageous for a REIT in today’s shifting economic landscape.

In summary, with a $9,000 investment, PRO REIT offers a strong mix of income potential, portfolio stability, and management expertise. It’s a solid choice for those looking for dependable monthly income, especially in a diversified and economically durable sector like industrial real estate. With its focus on strategic acquisitions, consistent occupancy rates, and stable dividends, PRV.UN is an attractive option for anyone looking to build a passive-income portfolio.