Canadian investors looking to boost their monthly income have multiple options to choose from. High‑yield monthly paying dividend stocks are incredibly appealing for any portfolio.
One of the main advantages of a monthly paying dividend stock is that it helps smooth out cash flow. This comes in handy for retirees looking to draw on that income, or investors who are seeking to build a reliable monthly passive‑income stream.
But the challenge is finding a stock that offers both a strong yield and a business model that can support it. Many high‑yield names come with red flags, so investors need to be selective.
One name that stands out among those stocks is Nexus Industrial REIT (TSX: NXR.UN). With a yield that sits north of 8%, Nexus offers investors one of the most compelling income opportunities in today’s market.
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Meet Nexus Industrial REIT
Nexus has grown into a pure-play industrial REIT over the past several years. That shift included selling off $200 million in office and retail properties and redeploying that capital to the industrial space.
That shift comes with a massive opportunity. Specifically, Nexus is now focused on logistics, warehousing, and distribution space properties. Those property types are growing in demand, supported by both e-commerce growth and supply-chain enhancements.
In short, it’s one of the most resilient sectors on the market, and that’s huge for prospective investors.
While Nexus shifts more into that pure-play industrial role, the sheer strength of the segment is providing several key advantages. Those include higher occupancy, strong leasing spreads, and even long-term demand tailwinds.
This provides Nexus with the foundation it needs to support what is its biggest draw, being the monthly paying dividend stock for any portfolio.
Let’s talk about income
As of the time of writing, Nexus offers one of the better-paying distributions on the market. Currently, the industrial REIT pays out an impressive 8.1%. For investors with just $4,000 to invest in the REIT, that represents a monthly income of just over $25. That’s enough to purchase three new shares each month from reinvestments.
As interest rates continue to stabilize, that yield represents a unique boost for investors, particularly as so many yields have compressed in recent weeks.
This makes Nexus an outstanding option for investors focused on a passive income payer that continues to pay each month.
That being said, unlike some of the more defensive picks on the market, Nexus does come with some risks for investors. REITs are capital-intensive businesses that require significant investments. As the Nexus footprint grows, so too will its payout ratio.
Should you buy this monthly paying dividend REIT?
Nexus offers investors a unique mix of growth potential and high-yield income. The industrial segment remains a unique niche in the REIT market, which continues to grow.
This makes it appealing for investors who have an appetite for some risk while seeking high-yield income.
For investors seeking a meaningful income boost, Nexus is a stock worth watching closely.
