If you’re seeking a reliable monthly passive income in Canada, you must try investing your hard-earned savings in some trustworthy dividend stocks with long histories of rewarding their investors, irrespective of economic cycles. In this article, I’ll highlight one such Canadian dividend stock you can buy right now to earn $1,000 in monthly passive income.
A top stock for monthly passive income in Canada
Allied Properties Real Estate Investment Trust (TSX:AP.UN) could be a great Canadian stock for monthly passive income to consider investing in 2023. This Toronto-headquartered, closed-ended REIT (real estate investment trust) currently has a market cap of $3 billion, as its stock trades at $23.42 per share after losing around 48% of its value in the last year. Allied Properties offers an attractive 7.8% annual dividend yield at this market price and distributes its dividend payout every month.
Now, let’s take a closer look at why Allied stock has fallen sharply lately and what still makes it worth buying right now, despite its recent poor stock performance.
Recent weakness
Allied Properties primarily focuses on developing and managing urban workspaces in top Canadian cities and urban data centres in Toronto. The total value of its assets stood at $11.9 billion at the end of 2022, reflecting a whopping 290% increase over $3.05 billion at the end of 2012.
Last year, Allied’s stock witnessed steep losses, as macroeconomic concerns and labour shortages triggered a big selloff across stock market sectors. Besides that, a recent weakness in its revenue growth rate also disappointed investors, pressuring its stock further. These were some of the key reasons why its lost nearly 42% of its value in 2022.
The growth is expected to improve
Nonetheless, Street analysts expect Allied’s revenue-growth rate to turn positive again in the ongoing year with an estimated 26.5% year-over-year jump. Moreover, the REIT has a strong development pipeline. Its top developmental projects, which are expected to be completed in the next couple of years, have an estimated gross leasable area of about 2.8 million square feet.
It’s also important to note that nearly 82% of these office projects have been pre-leased, reflecting the continued strong demand for quality workspaces in Canada. These positive factors can help boost Allied’s financial growth outlook and help this Canadian monthly dividend stock stage a sharp recovery in the near future.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Allied Properties REIT | $23.42 | 6,667 | $0.15 | $1,000 | Monthly |
| Prices as of Apr. 19, 2023 |
Bottom line
If you want to earn $1,000 in monthly passive income from Allied’s dividend distributions, you can buy 6,667 shares now. However, to buy these many shares at the current market price, you’ll have to pour $156,141 into this single stock.
While this example aims to show how dividend investing can help you generate reliable monthly passive income, it’s never a good idea to invest such a large sum of money in just one or two stocks, irrespective of your risk profile. Instead, you may want to diversify your portfolio to keep your risks low by adding more such quality Canadian dividend stocks to it.
