Right now is an excellent time to get into a stellar TSX stock. You can pick up so many for a great deal on the TSX today, offering a chance at superior returns in the years to come.
But what if you need cash now?
That’s why one of those options you choose should be a TSX stock that offers passive income. Today, I’m going to focus on one that will pay you each month and could still see incredible growth by 2030.
Granite REIT
A great option is TSX stock Granite REIT (TSX:GRT.UN). This company focuses on industrial and warehouse properties across North America and Europe. If you’re not aware, these are the types of properties that e-commerce companies use, but not just e-commerce companies.
If you need to store, ship, and assemble products, these are the businesses that get you there. Some have partnerships with worldwide companies. As for Granite, analysts have pegged the company as moving into “higher gear” with rental rates rising and supply needed more than ever to meet demand.
And it’s important to remind ourselves that right now is a short-term problem on the TSX today. Long term, e-commerce will make a comeback and thrive. It was predicted even before the pandemic, and it will go on long after it’s over. Now, analysts expect “above-average demand” for this space and Granite REIT in particular.
Stable cash flow and rising dividends
Now, let’s look at the numbers for Granite REIT. This TSX stock has built a stable and solid portfolio of assets in both North American and Europe. It’s managed to acquire strong acquisitions and maintains a pipeline that will allow the company to consistently increase its cash flow.
What analysts particularly like about Granite is that it’s able to grow even in market volatility. Furthermore, investors are starting to realize there is some growth happening in the markets. This TSX stock has now gotten back to where it was a month ago, with shares rising 4.33% in the last week alone.
As for dividends, this TSX stock has managed to grow its dividend by a steady and solid rate. Its dividend has grown at a compound annual growth rate (CAGR) of 3.96% over the last decade alone. That’s consistent growth that you can look forward to month after month.
Adding it up
If you want to create $250 per month in passive income from this TSX stock, it won’t be a small investment. To do that, you would need to have 967 shares — an investment of $77,419 on the TSX today. Still, trading at 3.36 times earnings, and with shares down 23% year to date, you’re getting a deal — one that would have cost you $102,502 just a few months ago!
Shares of this TSX stock have also grown over the last decade by 231%. That’s a CAGR of 13.34%, and that’s not including the major growth before and just taking into consideration the fall on the TSX today. But even with these conservative numbers, you could turn your $77,419 investment into $260,242 by 2030 by reinvesting dividends!
