Got $10,000? 1 Dividend Stock for $61 in Monthly Passive Income

Boost your monthly returns by investing in this high-quality TSX monthly dividend stock and adding it to your self-directed investment portfolio.

| More on:
Key Points
  • Diversified Royalty (TSX:DIV) buys royalties from multi‑location businesses and pays monthly dividends; Q3 2025 distributable cash rose 18.8% and the payout ratio eased to 89.3%, enabling two payout increases in 2025.
  • At ~$3.89/share with a $0.02375 monthly distribution, a $10,000 investment would yield about $61/month — a useful monthly‑income example, but investors should diversify rather than concentrate capital in one name.
  • 5 stocks our experts like better than [Diversified Royalty] >

Stock market investing isn’t all about making big moves and investing in companies that suddenly make you rich overnight. While there is always the odd chance that can happen, there are more sustainable ways to approach stock market investing to grow your wealth. Seasoned investors know and understand how to use the equity securities market to achieve their financial goals without unnecessary risks.

A slow and steady approach, whereby you use stock market investing as a passive income stream, can be an excellent way to put your money to work. If you have $10,000, investing it across a portfolio of monthly dividend stocks can unlock regular passive income to boost your earnings or achieve various financial goals.

Today, I will discuss a monthly dividend stock you can consider investing in for this purpose.

Colored pins on calendar showing a month

Source: Getty Images

Diversified Royalty

Diversified Royalty Corp. (TSX: DIV) can be an excellent pick for dividend investors seeking monthly returns instead of waiting for quarterly dividends. Monthly payouts offer faster compounding, smoother cash flows, and the feeling that you’re making extra money in your sleep every month without lifting a finger.

Diversified Royalty is a $662.36 million market-cap multi-royalty company that acquires royalties from multi-location businesses and franchisors across North America. It offers businesses it acquires complete operational control, participates in their growth, and offers tax deductibility on royal payments. In turn, it purchases trademarks of the companies it acquires, creating a win-win scenario for Diversified Royalty and its partners.

[Insert chart here – Diversified Royalty (Ticker:DIV)]

2025 saw the company increase its payouts twice, owing to its solid business model. The company doesn’t focus on running the day-to-day operations of the shops and restaurants it acquires. Instead, it lets the companies run their operations while giving Diversified Royalty a cut of the sales.

Diversified Royalty has been busy with acquisitions, and its business model has been successful. The company targets established names with immense growth potential. This lets it acquire a predictable royalty stream. The reliable income that it generates from royalties, in turn, helps the investor in top-line royalties fund its growing monthly dividends.

The third quarter of 2025 saw distributable cash rise by 18.8% from the same period in the previous year. The payout ratio also declined from 94.1% in the same quarter last year to 89.3%, reflecting the ease on the company’s balance sheet when paying out monthly distributions.

Foolish takeaway

While you should always diversify your capital when investing in the stock market, I want to show you what a hypothetical $10,000 investment in Diversified Royalty stock can do in terms of monthly dividends. When actually investing in the stock market, be mindful that you diversify your investment capital across several assets to minimize the risk. For the sake of explaining the example, the table below shows what a $10,000 investment in DIV stock shares would return:

TickerRecent PriceDividends Per Share Per MonthAmount InvestedTotal Dividends Per Month
DIV$3.89$0.02375$10,000$61.03

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Investing

trails of light
Tech Stocks

Canada’s Aerospace Boom Is Taking Off: 3 TSX Stocks I’d Buy Now

Canada’s aerospace edge is real, and a global defence-spending surge could make three TSX names worth watching.

Read more »

investor looks at volatility chart
Investing

TSX Sinks, Then Soars: Making Sense of Last Week’s Volatile Trading

iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV) and other low-cost dividend players are worth sticking with through rate-related…

Read more »

Nickel ore is mined from the ground.
Metals and Mining Stocks

Critical Minerals Could Become Canada’s Next Investment Boom: Here’s the Stock I’d Watch

Canada wants to break China’s grip on battery minerals, and Nouveau Monde Graphite could be an early test of whether…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Monday, September 21

TSX investors will closely watch Tiff Macklem’s speech today for fresh interest rate clues, while weaker commodity prices and Canada-U.S.…

Read more »

Canadian Dollars bills
Investing

5 TSX Stocks to Buy With $10,000 in September

With resilient businesses, solid financial performance, and visible growth opportunities, these five TSX stocks offer compelling opportunities for long-term investors.

Read more »

sleeping man relaxes with clay mask and cucumbers on eyes
Dividend Stocks

The 1 Canadian Stock That’ll Be Your TFSA’s BFF

Loblaw is a core holding candidate for a long-term TFSA. Canadians can consider dollar-cost averaging into a position over time…

Read more »

Piggy bank on a flying rocket
Bank Stocks

Why BMO Is the Only Stock I’d Hold Forever in My TFSA

Canada’s dividend pioneer is the ultimate anchor stock and forever holding in a TFSA.

Read more »

man touches brain to show a good idea
Dividend Stocks

2 High-Yield Dividend Stocks: Here’s My Take on Whether They’re Actually Good

SmartCentres REIT and Gibson Energy, for example, are two Canadian companies that offer relatively high dividend yields.

Read more »