I’d Put $7,000 in This Monthly Dividend Machine for Life

If you want monthly income from a dividend stock, you need a company that is one thing: essential.

With inflation rising, housing costs surging, and economic worries mounting, it’s no surprise that Canadians are feeling the squeeze. A new BMO survey shows financial stress jumped significantly between March and April 2025. Cost-of-living concerns rose 17 points, inflation worries rose 16, and over half of Canadians now say they’re more worried about their finances. For anyone looking to invest, that kind of uncertainty can make markets feel like a minefield.

shopper chooses vegetables at grocery store

Source: Getty Images

Consider essentials

Even in shaky times, there are steady opportunities. One of the best places to look is in real estate investment trusts (REITs), especially those that pay consistent monthly income. If you’re aiming to grow your wealth and earn passive income over decades, Slate Grocery REIT (TSX: SGR.UN) is worth a serious look.

Slate Grocery REIT isn’t flashy, but that’s kind of the point. It owns 116 grocery-anchored real estate properties across the United States. These aren’t experimental retail spaces or high-rise condos. We’re talking about shopping centres built around grocery stores, the type of business that people visit rain or shine, recession or not. That stability has helped Slate weather tough markets.

Get in on dividends

Right now, the REIT trades for about $14.93 per unit. With a $7,000 investment, you could scoop up around 468 units. It pays a monthly dividend of $0.0983 per unit, which adds up to $1.19 per year. That works out to an annual yield of around 7.9%. So that same $7,000 investment could earn you about $557 per year, or about $46.42 per month in cash, paid directly to your account.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYINVESTMENT TOTAL
SGR.UN$14.93468$1.19$557.00Monthly$6,986.24

That’s not bad for a stock that flies under the radar. And Slate’s business looks strong enough to keep those payouts coming. According to its most recent earnings report, Slate generated US$53.1 million in revenue in Q1 2025, up from US$51.9 million a year earlier. Net income came in at US$12.3 million, up year over year. That kind of growth is comforting in a shaky market.

More to come

More importantly, the REIT has kept occupancy high, currently around 94.4%. That means rent continues flowing in. With grocery stores as anchor tenants, Slate’s properties see consistent foot traffic and demand. People need food no matter what the market is doing, and that makes these properties far less risky than office towers or malls.

Slate has also been careful with debt. While interest rates remain a concern across the board, the REIT has taken steps to lock in favourable terms and avoid excessive leverage. That’s a big deal if you’re depending on monthly dividends. A dividend stock that stretches itself too thin with debt can’t always keep its promises to shareholders. But Slate’s current debt-to-equity ratio of about 133% is manageable for a real estate-focused operation.

So why put $7,000 into this REIT now, and not wait? Because monthly dividend machines like this don’t stay cheap forever. You lock in today’s yield when you buy, and that income keeps adding up. Reinvest it, and you let compound growth do the heavy lifting over the next few decades. Even better, that income isn’t tied to one part of the market; it’s based on real tenants, real leases, and real property.

Bottom line

At a time when Canadians are reporting historic levels of anxiety about inflation, job security, and recession risks, it’s more important than ever to focus on stable assets. Slate Grocery REIT offers a way to earn consistent monthly income from a business that provides essential services.

The BMO survey shows people are nervous, and with good reason. But investing in something like Slate Grocery REIT is one way to take control. You won’t get rich overnight, but you’ll get something just as valuable: reliable income, month after month, backed by grocery stores that don’t go out of style. In a world full of financial noise, that kind of quiet confidence is worth every penny.

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

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