Dividend investment might be helpful if you want a monthly passive income in Canada. Even under challenging market situations, you may expect to generate dependable monthly passive income by investing your hard-earned money in a few high-quality dividend companies. In this article, I’ll showcase one of the top TSX dividend stocks you can purchase right now to get $500 in passive income each month.
Top dividend stock for monthly passive income in Canada
Always make sure to invest in businesses with solid fundamentals and a robust business plan, whether your goal is to generate additional money each month or to retire early. This criteria will assist you in eliminating companies with bleak growth prospects that can potentially raise your risk profile.
In light of this, SmartCentres Real Estate Investment Trust (TSX:SRU.UN) might be a good stock to buy. The shares of this real estate investment trust (REIT), with its headquarters in Vaughan, Ontario, rose by 40% in 2021 but have since corrected downward by 16.7% to trade at $26.82 per share, with a market cap of $3.9 billion. SmartCentres offers a respectable annual dividend yield of 6.9% at the current market price and pays out dividends every month.
What makes this TSX dividend stock worth considering now?
185 buildings owned by SmartCentres REIT are currently occupied to 98.1% capacity across Canada. The REIT is concentrating on its intensification program, which is anticipated to add millions of square feet of space to its already robust portfolio, to accelerate its financial growth over the coming years. Furthermore, the stock is much more appealing due to its solid dividend growth history. Notably, between 2016 and 2021, SmartCentres REIT increased its dividend by 20%.
The stock market has significantly declined over the past year, primarily due to concerns about high inflation and quickly rising interest rates, which have increased the likelihood of a moderate recession in the near future. Investors should concentrate on the stocks whose profitability won’t be significantly impacted by these macroeconomic issues, given the hazy market environment.
For instance, the SmartCentres REIT receives more than 60% of its rental income from sizable, well-established businesses that offer important services. Walmart, Loblaw, Canadian Tire, Lowe’s, Dollarama, McDonald’s, Scotiabank, Dollar Tree, Metro, and Home Depot are just a few tenants on its list. Because of this, short-term economic challenges may not greatly impact the prospects for its long-term growth.
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SmartCentres REIT’s dividends will provide you with passive income of $500 per month if you purchase roughly 3,244 shares of the company right now. However, you’ll need to put down around $87,004 right now in this TSX dividend company to own this many shares at the present market price. You now have a better understanding of how simple it is to begin using dividend investing in Canada to begin generating monthly passive income. However, diversification is usually preferable to investing significant money in a single stock to reduce risk.