Invest $10,000 in This Dividend Stock for $566 in Passive Income

PMZ.UN could turn a $10,000 TFSA into a steady monthly payout, as long as mall occupancy holds up.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 5, 3:30 pm EST

| More on: PMZ.UN

Key Points

Primaris pays monthly income from mall rents, aiming for steady cash flow through all market cycles.
Its payout looks covered, with FFO rising and a payout ratio near 53%.
The big risk is filling Hudson’s Bay vacancies while managing occupancy and debt costs.

A $10,000 Tax-Free Savings Account (TFSA) won’t buy instant freedom, but it can start a real passive-income habit. The goal is to own something that can keep paying through boring years and ugly years, not just the fun ones. When distributions arrive, you can reinvest them and slowly increase your unit count without lifting a finger. Over time, that snowball effect can matter more than the first month’s payout. The key is picking a payout that looks covered by cash flow and a business model that can adapt. So, let’s look at one dividend stock offering that.

diversification is an important part of building a stable portfolio — Source: Getty Images

PMZ

Primaris Real Estate Investment Trust (TSX: PMZ.UN) is a Canadian enclosed shopping-centre real estate investment trust (REIT) that pays monthly distributions. It’s the opposite of a hype stock. You’re buying rent from tenants in malls, plus management’s ability to keep space leased and push rents over time.

If the Bank of Canada signals multiple cuts, REITs can get a lift as income assets often look more attractive when yields are falling, and refinancing worries ease a bit. But you can’t invest in PMZ.UN based only on rate hopes. The unit price can swing on every macro headline. What matters is whether the centres keep generating cash, and whether vacant space is getting re-leased at decent economics.

Into earnings

Primaris’s third-quarter (Q3) 2025 release showed both progress and one very real mess to clean up. Total rental revenue was $159.2 million, and management said it already reflected a $2 million negative impact tied to Hudson’s Bay Company issues. Same-properties cash net operating income (NOI) rose 0.7% year over year, and Primaris explained that underlying growth looked stronger once adjusting for a one-time operating cost accrual and the impact from disclaimed HBC locations.

For REIT investors, funds from operations (FFO) is the cash-flow lens that usually matters most. Primaris reported FFO per unit fully diluted of $0.443, up 5.7% from the prior year, and it put the FFO payout ratio at 52.6%. That’s a meaningful buffer, as it suggests the distribution isn’t being stretched to the limit. Primaris also reiterated 2025 guidance for same-properties cash NOI growth of 4% to 5% and FFO per unit fully diluted of $1.78 to $1.82. Therefore, it’s still pointing to a steadier full-year picture.

Earning income

Valuation is where PMZ.UN can start to feel comfortable for a beginner who wants income without paying a premium. Primaris reported net asset value (NAV) per unit of $21.58 as of Sept. 30, 2025, and management highlighted unit buybacks at what it called a deep discount to NAV. Primaris also announced a distribution increase from $0.86 to $0.88 per unit annually.

So, can $10,000 actually supplement your income? After the increase to $0.88, it’s looking like a strong option, assuming your unit count stays the same. It won’t replace a paycheque, but it’s a real monthly stream you can reinvest, stack with other TFSA holdings, and grow as you add contributions. Here’s what it might look like on the TSX today.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
PMZ.UN	$15.52	644	$0.88	$566.72	Monthly	$9,994.88

Bottom line

The lifetime test is staying power. Primaris shows enough cash cushion to keep paying while it works through vacancies, but the risk is clear. Management updated 2025 occupancy guidance to 85% to 87%, assuming HBC disclaims all its leases. Watch the pace of backfilling that space, debt costs, and tenant sales trends. If those hold up, PMZ.UN can be a reasonable starter REIT for monthly TFSA income.