A $26,000 investment can move the needle. It won’t make most investors rich overnight, but placed in the right Canadian stock, it can start building income, growth, and discipline all at once. That’s why Killam Apartment REIT (TSX: KMP.UN) looks like one of the top Canadian stocks to buy in 2026 for investors who want real estate exposure without buying another property.
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KMP
The market still feels tricky. Interest rates remain a major concern for real estate stocks, housing affordability still hurts Canadians, and renters keep facing tight supply in many cities. That mix creates frustration for households, but it can also support landlords with quality properties in strong markets.
Killam owns and operates apartments and manufactured home communities across Canada. Its portfolio leans heavily toward Atlantic Canada, Ontario, Alberta, and British Columbia. This gives investors exposure to rental housing, one of the most basic needs in the economy.
Canada’s housing shortage hasn’t gone away. Apartment demand remains strong, especially as high home prices and mortgage costs keep many people renting longer. For investors, that creates a simple business case. A well-run apartment real estate investment trust (REIT) can raise rents over time, improve occupancy, and collect steady monthly cash flow.
Into earnings
Killam’s latest quarter showed that strength. In the first quarter of 2026, the dividend stock reported net income of $50.3 million, compared with a loss last year. Same-property revenue rose 5%, while same-property net operating income (NOI) climbed 5.4%. Funds from operations (FFO) came in at $0.287 per unit, up 3.2% from last year.
Those numbers show steady progress from a dividend stock tied to a real and ongoing need. Killam also bought back 400,601 trust units during the quarter at an average price of $16.44 per unit. Management said those purchases came at a meaningful discount to net asset value, making it a practical move when a dividend stock believes its own units look cheap.
More to come
The distribution adds another reason to watch it. Killam pays $0.06 per unit each month, or $0.72 per year. Recent data showed a forward yield near 3.8%. So, a $26,000 investment could produce about $1,014 in annual income at that yield, or roughly $83 per month. That won’t replace a paycheque, but inside a tax-beneficial account, it can become a strong building block.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| KMP.UN | $18.82 | 1,381 | $0.72 | $994.32 | Monthly | $25,990.42 |
The better opportunity may come from combining income with long-term growth. Killam doesn’t just collect rent. It can improve properties, develop new apartments, and benefit as rents reset across its portfolio. If interest rates ease over time, apartment REIT valuations could also improve. That gives the dividend stock both income appeal and recovery potential.
Investors still need to understand the risks. REITs carry debt, and higher borrowing costs can pressure cash flow. Killam also suspended its dividend reinvestment plan in April 2026, so investors who want automatic compounding need to manage that themselves.
Bottom line
Even with those risks, Killam looks attractive for 2026. It owns real assets. It serves a basic need, paying monthly income, and it trades in a sector that still hasn’t fully recovered from the pressure of higher rates. A $26,000 investment should never go into one stock without thought. But for investors building a diversified Canadian portfolio, Killam deserves a spot near the top of the watch list.
