Why a $35,000 Investment Needs This Strategic Allocation

These three dividend stocks are some of the top options for those seeking not just growth but dividend income as well.

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Investing $35,000 in today’s market means striking a balance. You want income, growth, and resilience. That’s easier said than done when inflation, rates, and uncertainty are all high. But with the right mix of Canadian stocks, it’s possible to build a portfolio that offers monthly income, long-term capital gains, and defensive strength. So, let’s look at a strategic way to hit all those marks.

Dream REIT

Dream Industrial REIT (TSX:DIR.UN) is a great place to start. This real estate investment trust (REIT) focuses on industrial properties like warehouses and logistics hubs. These spaces have become increasingly valuable due to e-commerce and shifts in the supply chain.

Dream Industrial reported net income of $47.5 million in its most recent quarter, along with a 94.8% occupancy rate. It pays a monthly dividend of $0.70 per share annually, which works out to an annual yield of around 6%. At a recent price of $10.60, the REIT continues to offer stable income for investors seeking consistent returns. A portion of your $35,000 in this REIT gives you income you can count on.

BAM

Next up is Brookfield Asset Management (TSX:BAM). It’s a global leader in alternative assets, including real estate, infrastructure, and renewable power. In the first quarter of 2025, it reported fee-related earnings of US$742 million, up 22% from last year. Brookfield also raised US$25 billion in capital, bringing its fee-bearing capital to over US$495 billion.

The Canadian stock focuses on managing long-term capital with predictable cash flows. For investors, that means exposure to some of the world’s biggest trends, including clean energy and digital infrastructure. Its dividend yield is modest, but its capital appreciation potential makes it a strong growth holding in any portfolio.

Intact

Intact Financial (TSX:IFC) adds some defensive strength. As Canada’s largest provider of property and casualty insurance, Intact delivers stable earnings and strong cash flow. In the first quarter of 2025, it posted net income of $631 million, or $3.69 per share. Its combined ratio improved to 92.2%, showing underwriting strength even in a tough environment.

Intact’s stock has been steadily climbing and now trades around $310. It also offers a quarterly dividend that comes out as $5.32 annually, translating to a yield of about 1.7%. While that yield isn’t huge, its dividend has grown steadily over the years. It’s a quality stock that anchors your portfolio and cushions volatility.

Restaurant Brands

Finally, there’s Restaurant Brands International (TSX:QSR), the parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs. It’s a global fast-food giant with over 30,000 restaurants. In the first quarter of 2025, the Canadian stock posted revenue of US$2.11 billion, up slightly year over year. While it missed earnings estimates slightly with adjusted earnings per share of US$0.75, it still reported solid system-wide sales growth of 2.8%.

The Tim Hortons brand continues to show resilience in Canada, and Burger King’s international presence gives the Canadian stock growth potential. QSR adds consumer exposure and brand power to this balanced mix, all with a solid dividend.

Bottom line

A strategic allocation of about $8,750 into each of these four stocks gives you a well-rounded $35,000 portfolio. Dream Industrial provides passive monthly income and industrial real estate exposure. Brookfield brings long-term global growth. Intact offers stability, with a steady dividend and strong fundamentals. Restaurant Brands adds a mix of income and brand-driven growth in the consumer space. Together, these would bring in $1,339.97 annually in dividends alone!

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDTOTAL PAYOUTFREQUENCYINVESTMENT TOTAL
DIR .UN$10.60825$0.70$577.50Monthly$8,745.00
BAM $74.71117$2.40$280.80Quarterly$8,741.07
IFC $31028$5.32$148.96Quarterly$8,680
QSR $89.3997$3.43$332.71Quarterly$8,670.83
TOTAL$1,339.97$34,836.90

This portfolio works well for investors who want a blend of income and capital gains. You’re not putting all your eggs in one basket, and each stock plays a different role. With the Canadian market facing uncertainty, a thoughtful allocation like this one could be just the move to make your money work smarter. Over time, the income adds up, and the growth compounds within the shelter of a Tax-Free Savings Account or long-term portfolio.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust, Intact Financial, and Restaurant Brands International. The Motley Fool has a disclosure policy.

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