1 Reliable Dividend Stock Worth Buying Even If You Only Have $400 to Invest

Even with $400, you can start building passive income with this dependable TSX stock.

Key Points
  • Nexus Industrial REIT (TSX:NXR.UN) offers an attractive 8.4% yield with a low share price, making it ideal for small investors.
  • The REIT’s strong occupancy, long lease terms, and steady rental income support reliable cash flows.
  • Ongoing acquisitions, developments, and portfolio optimization could drive long-term income and growth.

Investing in dividend stocks could be a smart way to generate passive income while growing your wealth over time. But what if you only have a small amount of capital to start with? Don’t worry, there are still plenty of opportunities on the Toronto Stock Exchange for investors like you. Today, I’ll highlight one such opportunity that could be perfect for those looking to start their dividend investing journey without breaking the bank. I’m talking about Nexus Industrial REIT (TSX: NXR.UN), a Canada-based real estate investment trust (REIT) focused on increasing unitholder value through the acquisition and management of industrial properties across the country. With a current stock price of $7.61 per share, this could be an excellent entry point for investors looking to get in on the action without shelling out a fortune.

Forklift in a warehouse

Source: Getty Images

A closer look at Nexus Industrial REIT

Nexus Industrial REIT owns a portfolio of approximately 89 properties comprising around 12.9 million square feet of gross leasable area. Its properties are spread across primary and secondary markets in Canada, making it a well-diversified player in the industrial real estate space. The company generates revenue through rental income from its tenants, which include a mix of businesses from various industries.

Nexus Industrial REIT has risen by 8.3% over the last 52 weeks, giving it a market cap of $742.1 million, making it a mid-cap player in the Canadian real estate investment trust (REIT) sector. The company also offers a monthly dividend with an impressive yield of 8.4%, which is quite attractive for income-oriented investors.

Key factors behind recent performance

Despite some short-term challenges, Nexus Industrial REIT posted strong operational performance in the latest quarter. In the fourth quarter of 2025, its net profit was $30.6 million, driven by net operating income (NOI) of $33 million and fair value adjustments of $20.3 million. More importantly, its industrial same property NOI increased 2.8% YoY (year-over-year) to $30 million. The REIT also sold a land parcel in Anjou for $8.5 million.

The company has been actively acquiring and developing new properties to expand its portfolio and increase rental income. For instance, in 2025, it completed two value-accretive projects: a 325,000 sq ft expansion in Ontario and a 115,000 sq ft small-bay complex in Calgary. These projects are expected to contribute significantly to the company’s net operating income (NOI) in the coming years.

Similarly, Nexus Industrial REIT has been focusing on optimizing its portfolio by selling non-core assets and reinvesting the proceeds into more profitable opportunities. This strategy has helped the company improve its financial metrics and strengthen its balance sheet.

Why Nexus Industrial REIT is a great investment right now

Two of the key reasons why I find Nexus Industrial REIT to be a great long-term investment are its strategic initiatives and strong management team. The company’s focus on acquiring high-quality industrial properties in key markets across Canada is expected to drive rental income growth and improve occupancy rates.

Moreover, Nexus Industrial REIT has been actively pursuing development opportunities to expand its portfolio and generate additional revenue streams. With a weighted-average lease term of 6.9 years and an industrial occupancy rate of 96%, the company is well-positioned to weather economic downturns and maintain stable cash flows. Overall, the REIT’s attractive dividend yield, strong financial performance, and long-term growth prospects make it an excellent investment opportunity for income-oriented investors.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT. The Motley Fool has a disclosure policy.

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