A 8.9% Dividend Stock Paying Cash Every Month: Perfect in a Volatile Market

There are few real estate stocks that offer the stability and growth as this top dividend stock.

In a market filled with volatility and uncertainty, steady income is hard to ignore. For many Canadian investors, especially those looking to build reliable monthly cash flow, a real estate investment trust (REIT) can be the answer. Among the many on the TSX, PRO Real Estate Investment Trust (TSX: PRV.UN) is standing out for all the right reasons. It offers a dividend yield of nearly 9%, pays you every month, and focuses on the kind of real estate that’s thriving even as the market shifts.

investor looks at volatility chart

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About PROREIT

PROREIT isn’t a flashy name, but it’s a dependable one. Based in Montréal, it owns a growing portfolio of industrial, commercial, and retail properties. The big story here is industrial real estate, and PROREIT has leaned into it. As of writing, it owns 115 income-producing properties across Canada, totalling about 6.1 million square feet of gross leasable space. That includes warehouses, light industrial buildings, and logistics centres, properties that are in demand as companies try to improve delivery times and storage capacity.

What makes PROREIT attractive right now is its occupancy rate. At nearly 98%, it’s clear that its tenants are not only staying but paying. That high level of occupancy is critical because it shows stability. It means the dividend stock is consistently collecting rent, which supports its ability to pay out dividends to investors.

Now, about that dividend. PROREIT currently pays $0.0375 per unit every month. That might sound small, but on an annual basis, it adds up to $0.45 per unit. With the stock trading at around $5 as of the most recent update, that works out to a forward dividend yield of 8.92%. For comparison, that’s significantly higher than many other REITs and far better than the average guaranteed investment certificate (GIC) or savings account. And because it pays monthly, you don’t have to wait long to see your passive income in action.

Showing strength

PROREIT’s recent earnings show a dividend stock that’s staying focused on long-term stability. For the full year 2024, it reported revenue of $99.2 million. Net income came in at $2.38 million, while earnings per share (EPS) landed at $0.04. At first glance, the EPS might seem low, but with REITs, that’s not the full story. What matters more is funds from operations (FFO), a measure of the actual cash available to distribute to unitholders. While exact FFO wasn’t listed in the latest earnings snapshot, PROREIT has historically covered its dividend with this metric, which suggests sustainability.

Another piece of the puzzle is the REIT’s focus on secondary markets. Instead of trying to compete for the most expensive buildings in Toronto or Vancouver, PROREIT is buying up quality properties in growing communities in Central and Eastern Canada. Think of places like Moncton, Halifax, or mid-sized Ontario cities. These areas often offer higher cap rates, less competition, and reliable demand. In short, these help PROREIT keep expenses down and returns up.

There are risks, of course. Interest rates could stay high, which affects borrowing costs and real estate valuations. Consumer sentiment and economic activity also influence tenant demand. However, PROREIT’s focus on industrial properties helps buffer some of that risk. E-commerce, shipping, and local logistics are structural trends, not passing fads. That means continued demand for well-placed warehouses and industrial spaces.

Bottom line

For income investors, PROREIT is worth a look. It pays nearly 9% annually, hands that cash to you monthly, and owns the kind of real estate that isn’t going out of style anytime soon. It’s not going to be the fastest-growing dividend stock on the TSX, but it doesn’t have to be. In a volatile market, the appeal of slow, steady, and monthly income is real.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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