Turning $25,000 into $225,000 might sound like one of those too-good-to-be-true investment stories. But with the right dividend stock, time, and the power of compounding, it’s actually quite realistic. The key is to find a company with stable cash flow, consistent dividends, and a long-term growth plan. One Canadian pick that checks all the boxes is SmartCentres Real Estate Investment Trust (TSX:SRU.UN).
Why SRU?
SmartCentres is one of Canada’s largest real estate investment trusts (REITs). It’s best known for its network of open-air retail centres, but it’s evolved into so much more. With 196 properties and over 35 million square feet of leasable space, SmartCentres is a major player in commercial real estate. Even better, it’s found a way to grow in a changing market without losing its dependable core.
Here’s what makes SmartCentres stand out for investors. First off, it pays a monthly dividend. That means consistent income and frequent compounding if you choose to reinvest your payments. Right now, the dividend comes to about $1.85 annually per unit, and with the dividend stock trading around $25.50, that works out to a very attractive 7.2% yield.
The company’s recent financials back up the story. In its most recent earnings report for the first quarter of 2025, SmartCentres posted net rental income of $136.8 million, up 4.6% from the same quarter a year ago. Its funds from operations (FFO) climbed to $0.56 per unit from $0.48. That kind of growth, in the current economic environment, speaks volumes. It shows SmartCentres is managing its properties well and earning more from them quarter after quarter.
Make that money
So, how exactly can a $25,000 investment turn into $225,000? It’s all about compounding. Let’s assume you invest $25,000 into SRU.UN and reinvest the dividends every month. If the stock continues to deliver a total return of around 10% annually between dividend income and modest capital growth, your investment could grow to over $225,000 in about 25 years. That’s not fantasy math. It’s simple long-term investing. And if interest rates stay higher for longer, as the Bank of Canada suggests, dividend-paying investments like SmartCentres become even more valuable to hold.
Of course, no investment is perfect. There are always risks. Interest rates could rise even further, which often puts pressure on real estate valuations. Consumer habits could shift more dramatically away from brick-and-mortar retail. Development projects could run over budget or take longer than expected. But SmartCentres has managed to steer through similar challenges before. It maintained high occupancy during the pandemic, adapted to inflation, and kept its distribution steady through economic ups and downs. That track record builds trust.
There’s also peace of mind in how SmartCentres manages its debt. The company keeps a conservative balance sheet, with a manageable payout ratio and strong relationships with lenders. That gives it room to manoeuvre if things get tough. Investors don’t just want yield; they want yield on which they can count. And this REIT delivers exactly that.
Bottom line
At the end of the day, investing isn’t about flashy stocks or overnight gains. It’s about picking companies with dependable income, long-term growth plans, and the discipline to stay the course. SmartCentres fits that description well. Whether you’re looking to build wealth for retirement, supplement your income, or simply put your cash to work more effectively, this REIT offers a practical, reliable solution.
So, if you’ve got $25,000 and a long-term mindset, SmartCentres Real Estate Investment Trust could be the foundation of something much bigger. With time, reinvested dividends, and a little patience, that original investment might just grow into a six-figure income stream, and that’s the kind of math that’s worth getting excited about.
