How a $10,000 Investment in This Dividend Stock Could Generate $32 a Month in Passive Income

A $10,000 investment can create meaningful passive income, but the best stocks for that job usually aren’t the ones with the wildest yields. They’re often dependable businesses with stable cash flow, solid assets, and a payout that looks sustainable instead of stretched. That’s why many income investors end up looking at real estate investment trusts (REIT). These can offer steady monthly distributions, and when you buy the right one at the right price, the income starts showing up without much drama.

GRT

Granite REIT (TSX:GRT.UN) is one of the stronger names in that group. It owns logistics, warehouse, and industrial properties across North America and Europe, with about 147 investment properties and roughly 62.6 million square feet of leasable area. Industrial real estate still sits close to long-term trends like e-commerce, supply-chain upgrades, and demand for modern distribution space, making it an ideal choice.

Over the last year, Granite stock stayed active instead of standing still. In January 2026, it announced about $292 million in acquisitions and $190 million in dispositions, including four distribution facilities in Houston and another in Fort Lauderdale. Those deals added newer logistics assets while also keeping the portfolio moving toward markets and buildings with stronger long-term demand.

Into earnings

The earnings side also looked healthy. Granite reported 2025 funds from operations of $5.91 per unit, up 8.6% from 2024, while fourth-quarter funds from operations (FFO) came in at $1.59 per unit, up 8.2% year over year. Net income attributable to unit holders for the fourth quarter reached $135.4 million, up from $83.7 million a year earlier. Those are the kinds of numbers income investors like to see, as these suggest the payout still has support underneath it.

The valuation looks reasonable for a high-quality industrial REIT, though not exactly dirt cheap. Granite stock recently held a market cap of about $5.5 billion and a dividend yield of 3.8% at writing. It also boasts a price-to-book ratio of about 1. That puts it in the category of quality income rather than bargain-basement yield chasing. And here’s the key detail: at a recent unit price around $91.70, a $10,000 investment would buy roughly 109 units. With Granite’s distribution at $3.55 per unit, that works out to about $32.25 a month in passive income at recent prices.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTGRT.UN$91.70109$3.55$386.95Monthly$9,995.30

Looking ahead

Even so, the fit still makes sense for investors who want dependable monthly cash. Granite stock raised its targeted annualized distribution effective with the December 2025 payment, and it has kept declaring that higher monthly payout into 2026. That tells you management feels comfortable enough with the business to return a bit more capital to unit holders.

The future outlook also looks solid. Granite stock has nearly $900 million in liquidity, continued leasing momentum, and a portfolio that remains tied to warehouse and logistics demand rather than shakier corners of real estate. It also expects to report first-quarter 2026 results on May 6, giving investors another near-term checkpoint. The risks are real, of course. Industrial real estate can cool if the economy weakens, and higher financing costs never help. But Granite stock still looks like the kind of REIT that could keep compounding quietly over time.

Bottom line

So while the headline math looks a little generous at today’s price, the bigger idea still holds up. Granite stock remains a strong option for investors who want monthly income from a real business with quality assets and a respectable yield. A $10,000 investment will get you closer to $32 each month. For a steady income stock you can hold for years, that’s not a bad place to start.

The post How a $10,000 Investment in This Dividend Stock Could Generate $32 a Month in Passive Income appeared first on The Motley Fool Canada.

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More reading

• 3 Canadian REITs Worth Holding in an Income Portfolio Through Any Market Condition
• 2 TFSA Dividend Stocks I’d Lock In Now for Long-Term Income
• 5 Canadian Dividend Stocks That Could Grow Your Paycheque Over Time
• Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine
• How to Pull $265 Per Month Tax-Free From Your TFSA

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.