For many Canadians, finding a reliable source of passive income is a top priority. Dividend stocks remain one of the most attractive ways to achieve this goal.
Unlike growth stocks, which rely heavily on capital appreciation, a strong dividend stock provides consistent payouts that can help investors weather market volatility.
But what if you could take it a step further and enjoy a dividend stock that pays you every month instead of quarterly?
That’s exactly what Dream Industrial REIT (TSX:DIR.UN) offers – a 5.6% yield backed by stable financials and strong growth prospects.
Let’s take a closer look at why this dividend stock could be a smart addition to a Canadian investor’s portfolio.
Why Dream Industrial REIT Stands Out
Dream Industrial REIT currently provides an annual dividend of $0.70 per share, or about $0.058 per month, resulting in a 5.6% yield.
For Canadians seeking steady income, that’s a meaningful return, especially with payments arriving every single month.
Even more important than the yield itself is whether the company can sustain it. During the second quarter of 2025, Dream Industrial’s funds from operations (FFO) payout ratio stood at just 68.7%.
That leaves plenty of room to cover dividends comfortably, as anything approaching 90% would start to raise concerns.
On top of that, cash flow drivers remain strong. Net operating income rose 5%, while FFO per unit increased 4%.
Rent renewals delivered spreads above 20%, with Ontario and Quebec seeing double-digit growth. All of this points to a dividend stock not only maintaining but potentially increasing its payout over time.
Also See: Turn $240 a Month Into $1 Million With This Powerful ETF
A Healthy Balance Sheet Adds Safety
When evaluating any dividend stock, Canadian investors should look beyond just payouts. Balance sheet strength is key to ensuring long-term stability. Dream Industrial continues to check this box:
- Committed occupancy sits at 96%, with in-place occupancy at 94.1%.
- Net debt to total assets remains at a manageable 38%.
- 84% of assets are unencumbered, providing flexibility.
- The REIT holds about $900 million in pro forma liquidity.
These figures show that Dream Industrial has the financial cushion to handle market challenges while still rewarding shareholders.
With more than 70% of 2025 maturities already addressed, the risks of refinancing are reduced, further supporting its ability to keep paying dividends.
Growth Opportunities on the Horizon
The best dividend stock is one that doesn’t just pay income but also grows in value over time. Dream Industrial is trading at just 0.8 times book value, meaning investors are effectively buying high-quality assets at a discount.
If market sentiment improves, there’s room for the share price itself to rise, creating additional upside.
Growth initiatives are also promising. The company has expanded in the Greater Toronto Area (GTA) and the Netherlands, generating yields between 6% and 10%.
Meanwhile, its solar repowering projects are already delivering 20%+ returns on cost, strengthening cash flow while adding inflation protection.
This combination of domestic and international growth ensures that Dream Industrial remains competitive and resilient in the face of economic uncertainty.
Also See: Why IBM Stock (NYSE: IBM) Is a Dividend Champion to Watch in 2025
The Bottom Line
For Canadians looking to secure a steady stream of passive income, Dream Industrial REIT offers an appealing package: a monthly dividend stock with a yield of 5.6%, supported by strong operations, a conservative balance sheet, and future growth opportunities.
To put things into perspective, a $7,000 investment in Dream Industrial at today’s price of $12.44 per share would purchase roughly 562 shares.
That would translate into an annual payout of $393, deposited into your account month after month.
In a market where uncertainty often dominates the headlines, stability is worth its weight in gold. Dream Industrial REIT gives Canadians a rare opportunity: a dividend stock that pays monthly, provides a healthy yield, and trades at a discount.
For income-focused investors, this could be a cornerstone holding to help build long-term wealth.
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