Buy 1,000 Shares of 1 Dividend Stock, Create $58/Month in Passive Income

Dividend-paying stocks are a reliable option for investors seeking passive income. Moreover, dividend stocks offering monthly payouts are even more attractive as they mirror a regular paycheque, supplementing your income to cover living expenses or to reinvest.

Against this background, here is a top Canadian stock that pays a monthly dividend. Its solid fundamentals, strong history of consistent distribution, and a high yield make this dividend stock an attractive option. Buying 1,000 shares of this company would help create a $58/month in passive income.

A reliable monthly dividend stock

For monthly passive income, investors could consider Dream Industrial REIT (TSX:DIR.UN). The real estate investment trust (REIT) operates industrial properties. The REIT has a portfolio of urban logistics and distribution facilities across Canada, the U.S., and Europe, which diversifies its earnings geographically.

Dream Industrial had approximately 1,470 tenants at the end of Q4 2025, and the weighted-average lease term is about 4.2 years. Importantly, the company maintains strong diversification across industries, with no single sector contributing more than 18% of its total annualized gross rent. This reduces concentration risk and helps stabilize rental income even when certain industries face economic pressure.

Notably, strong leasing activity supports healthy occupancy levels and favourable rental spreads across the REIT’s properties. As occupancy remains high and rents increase, the company generates stronger comparative property net operating income (NOI) along with higher funds from operations (FFO). This financial strength supports its payouts.

Dream Industrial REIT currently distributes $0.058 per unit each month, translating to an annual yield of about 5.5%. For investors seeking reliable monthly cash flow, Dream Industrial REIT is a compelling option.

Earn a steady monthly income of $58

Dream Industrial REIT will likely maintain its monthly distributions through 2026 and beyond, supported by steady operational growth and strong demand for industrial real estate. In 2025, the REIT reported funds from operations (FFO) of $1.05 per unit, up 5% year over year. Rental fundamentals also improved, with average in-place rent rising 8% and same-property net operating income growing roughly 6% over the year.

Leasing conditions strengthened notably in the second half of 2025. Higher leasing activity across key markets led to stable asking rents. The REIT reported in-place and committed occupancy of 96.2%, while tenant retention remained solid at about 70%, reflecting consistent demand for its industrial assets.

Beyond its core property portfolio, Dream Industrial has been expanding ancillary revenue streams that help drive cash flow even when rent growth moderates. Its solar initiatives and private capital platform are the most mature examples, and both are expanding faster than its traditional real estate operations. These businesses are already making meaningful contributions to overall FFO.

Management is also focused on strengthening free cash flow and lowering the payout ratio, a strategy that should strengthen the sustainability of future distributions. At the same time, the REIT continues to recycle capital from non-strategic properties into urban industrial assets and selective new developments that benefit from long-term structural demand.

Overall, Dream Industrial is well-positioned to continue returning significant cash to its shareholders. For income investors, holding 1,000 shares of Dream Industrial REIT would currently generate $58 in monthly passive income.

CompanyRecent PriceNumber of SharesDividendTotal PayoutsFrequencyDream Industrial REIT$12.671,000$0.058$58MonthlyPrice as of 03/11/2026

The post Buy 1,000 Shares of 1 Dividend Stock, Create $58/Month in Passive Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Dream Industrial REIT right now?

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* Returns as of February 17th, 2026

More reading

• Got $14,000? Here’s How to Structure a TFSA for Lifelong Monthly Income
• Turn a TFSA Into $300 in Monthly Tax-Free Income
• Canadian Real Estate Stocks That Could Be Due for a Big 2026
• These Canadian Dividend Stocks Are Breathtakingly Cheap Right Now
• 4 Canadian Dividend Stocks to Buy if You Want $500 a Month

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.