For many Canadians, the idea of building wealth feels overwhelming. Stocks can be unpredictable, the economy keeps changing, and saving large amounts of money isn’t always realistic. But there’s a quiet, dependable way to grow your money that doesn’t get enough attention. It’s called dividend investing. And if you’ve got just $300 to put to work today, there’s a strong case for looking at Allied Properties REIT (TSX:AP.UN) as one of the smartest options on the TSX.
The beauty of compounding
Dividend income is more than just a nice perk, it’s one of the most powerful tools for long-term compounding. Unlike growth stocks, which may require you to sell shares to lock in profit, dividend-paying Canadian stocks give you cash back on a regular basis. That income can then be reinvested into more shares. And those new shares? They pay dividends, too. Over time, this creates a snowball effect, where your investment grows not just from stock price gains, but from the consistent reinvestment of income.
That’s where Allied Properties REIT comes in. With shares currently trading at around $15.75 as of writing, you could buy roughly 19 shares with $300. That might not sound like much, but thanks to its monthly dividend of $0.15 per unit, those shares would generate nearly $2.85 in monthly income to start. Reinvest that amount consistently, and you’re building a foundation that gets stronger every year.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| AP.UN | $15.75 | 19 | $1.80 | $34.20 | Monthly | $299.25 |
Why Allied
Allied Properties focuses on urban office spaces in cities like Toronto, Montreal, and Vancouver. It doesn’t deal in massive suburban office towers. Instead, it owns stylish, character-rich buildings in prime downtown locations. Its properties attract companies in technology, media, and design, sectors that value collaboration and creativity. This focus helps differentiate it from traditional office REITs, which have been more heavily affected by work-from-home trends.
Despite economic headwinds, Allied has held its ground. In its latest earnings report, Allied posted revenue of $141.1 million and net operating income of $91.4 million. While overall occupancy dipped slightly, the trust still maintained a solid leasing pipeline and a strong tenant base. Management has also been working to shore up its finances. It completed $850 million in refinancing, with minimal impact on annual interest expenses. That’s a big deal in today’s high-rate environment.
More to come
Allied has also made progress in reducing its debt and improving liquidity. It currently has access to over $700 million in capital, providing a safety cushion in case the market turns. And while some REITs have had to cut distributions, Allied has reaffirmed its commitment to maintaining its payout, even during economic uncertainty.
Beyond the numbers, investing in a REIT like Allied gives you exposure to Canadian real estate without the hassle of buying property yourself. It’s diversified across dozens of buildings, hundreds of tenants, and multiple cities. So, instead of putting all your eggs in one basket, you’re spreading your risk while still earning real estate-style returns. And because REITs are required by law to return most of their earnings to shareholders, you can expect income to be a central part of the investment.
Bottom line
Let’s say you invested $300 today and reinvested every dividend. You continued adding a small amount each month – maybe another $50 or $100. Over the next five, ten, or twenty years, that portfolio would steadily grow. And by reinvesting those dividends, you wouldn’t just be growing your income, you’d be accelerating it.
In a world where instant returns are glamorized, dividend investing is all about the long game. It rewards patience, discipline, and consistency. It won’t make you rich overnight, but it can absolutely make you wealthier over time. So if you’re sitting on $300 and wondering how to make it count, Allied Properties REIT might be your answer. With a high yield, monthly income, and a solid foundation in Canadian real estate, it’s a Canadian stock that fits perfectly into a strategy built on compounding and long-term thinking.
