Picture a resident who is a retired teacher in Saskatoon. Every quarter, her property tax and home insurance bills land within days of each other. She wants one dividend cheque to cover both, which is about $750 or $3,000 a year.
One TSX dividend stock that is worth a look in November 2026 is Alaris Equity Partners Income Trust (TSX: AD.UN). The stock currently trades at $21.54 and pays $1.56 a year.
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How much do you need to invest in Alaris for $750 a quarter?
Divide your $3,000 yearly goal by the $1.56 annual dividend, which amounts to 1,924 units.
At $21.54 a unit, that costs about $41,443. Each unit pays $0.39 a quarter, so 1,924 units pay $750.36 every three months, indicating a yield of over 7%.
If you want to invest a lower amount, say $10,000, you can still earn $181 a quarter, or over $720 annually.
What does Alaris Equity Partners do?
Alaris is a Calgary company founded in 2004, which acts like a silent partner for private businesses. It gives profitable, mostly family- or founder-owned companies capital for growth, succession, or a buyout.
In return, Alaris gets preferred equity that pays a monthly or quarterly cash distribution. The payment is set 12 months ahead, which is adjusted each year based primarily on revenue.
It ended Q3 with 26 partner companies in Canada and the U.S.
Why did Alaris report a loss in Q3 2026?
Alaris posted a net loss of $6.2 million, compared with income of $86 million a year earlier. The loss was tied to a $58.9 million non-cash markdown on partner investments.
CFO Amanda Frazer said about 60% of that markdown, or roughly $35 million, came from higher interest rates. The 5- and 7-year rates rose almost 1% in the quarter, which lowers the value of the company’s fixed-yield investments.
Partner distribution revenue rose 25.9% to $72.2 million, while net distributable cash flow, the cash Alaris earns before paying unitholders, rose 46.4% to $54.7 million, or $1.19 a unit.
Over nine months, net distributable cash flow rose to $2.47 a unit, which already covers the annual dividend of $1.56 per unit.
Rates have also eased since September 30, and Frazer said about half the markdown should reverse.
Is the Alaris dividend safe for income investors?
Let’s start with the payout ratio, the share of cash flow paid out as dividends. Alaris paid out 45.1% over nine months, down from 54.4% a year ago, even after it raised the dividend.
Management pegs the forward run rate near 63%, under its 65% to 70% target. On the call, it said about $125.8 million in annual operating cash flow covers $79.2 million of unitholder payouts. The rest will be allocated to lower debt and target new deals.
The weighted average earnings coverage ratio is about 1.5 times, a metric of how easily they afford their payments. And 16 of 26 partners carry no senior debt, or less than 1 times EBITDA.
CEO Steve King explained why Alaris can stay patient on exits, stating:
For us, collecting a 13% or more cash yield each year makes it very attractive to wait for a perfect sale opportunity.
What are the risks of buying Alaris stock now?
No dividend stock is risk-free, and you need to watch out for net book value per unit, which fell to $24.87 from $25.83, and a move in interest rates can impact this metric again.
Sono Bello is one of Alaris’s larger partners. CEO Steve King calls it the world’s largest cosmetic surgery company. To fund its expansion plans, it will pay part of its distribution in kind for a couple of quarters, which means Alaris gets extra securities instead of cash.
Steel tariffs also hit LMS, a steel supplier in British Columbia. King said LMS is perhaps the largest steel importer in Canada. West Coast builders can’t easily buy Ontario steel because of shipping costs, so Vancouver developers have delayed projects. King said that will hurt LMS’s backlog going into 2027.
Notably, Alaris forecasts 2027 distribution resets to be roughly flat.
