Invest $15,000 in This Dividend Stock for $1,010 in Passive Income

Investors with $15,000 to put aside can use it as a powerful starting point for building passive income. With the right mix of income-producing assets, that $15,000 can generate steady cash flow from day one. All while reinvesting those distributions accelerates growth and helps build a snowball effect. Even a modest portfolio today can turn into a reliable, long-term income stream that supports financial freedom well into retirement, especially when invested in a dividend stock such as Alaris Equity Partners (TSX:AD.UN).

About Alaris

Alaris stock is one of the most overlooked income machines on the TSX. Instead of owning real estate or pipelines, Alaris provides growth capital to profitable mid-market private businesses across North America. In return, it earns contracted, recurring distributions that act like royalty payments, leading to predictable cash flow.

The dividend stock targets businesses with durable margins, strong free cash flow, and long operating histories. This has helped Alaris maintain one of the most stable dividend profiles in the alternative-lending sector. Its model is intentionally conservative. The dividend stock structures deals to protect its capital, receives returns tied to company performance, and diversifies across multiple industries to avoid concentration risk.

This has made Alaris stock a unique hybrid – part private-equity fund, part income trust – but without the volatility or high leverage common elsewhere in the space. Investors buy Alaris primarily for the high, steady monthly distribution. This is supported by multi-year contracts. The dividend stock’s historical returns show its ability to grow distributable cash per unit while maintaining one of the most attractive yields on the TSX.

Into earnings

Most recent earnings reinforced the strength of Alaris’s business model. The dividend stock reported another period of stable and growing distributions from its partner companies, with several positive resets. Alaris’ annual payments from partners automatically increased based on revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) improvements.

This built-in inflation-style protection is something most dividend stocks cannot offer. Earnings also highlighted strong revenue growth from new partnerships and improved performance among its existing portfolio companies. Even with some partners going through restructuring, Alaris’s diversification kept cash flow robust, and management reiterated that payout coverage remains healthy.

The quarter also showcased disciplined capital deployment. Alaris continues to find attractive private companies that meet its strict underwriting criteria – all while simultaneously receiving redemptions at premium valuations when partners buy out Alaris’ stake. These redemptions often generate capital gains that can be recycled into new, higher-yielding deals, boosting future cash flow.

That dividend

Now the good part. Alaris is exactly the type of dividend stock that can turn a $15,000 investment into an unusually large passive-income stream. Right now, it offers a yield of 6.8% for payments of $1.36 annually, dished out quarterly. And because the distributions are underpinned by private-company contracts and not volatile commodity prices or interest-rate swings, the income tends to remain resilient even during downturns. Here’s what investors could earn from that $15,000 at writing, coming to $1,010 annually, or $252.62 quarterly!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTAD.UN$20.17743$1.36$1,010.48Quarterly$14,982.31

For long-term investors, this creates a powerful compounding engine. As Alaris redeploys capital into new deals, distributable cash continues to rise, supporting dividend stability and potential hikes. Pair that with the fact that management only invests in strong, cash-rich businesses, and you get a dividend stock uniquely engineered to produce outsized passive income.

Bottom line

For someone putting $15,000 to work, Alaris offers both high upfront yield and future income growth. This makes it one of the TSX’s most effective vehicles for building lasting quarterly cash flow.

The post Invest $15,000 in This Dividend Stock for $1,010 in Passive Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Alaris Equity Partners Income Trust right now?

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* Returns as of November 17th, 2025

More reading

• 2 TSX Private Equity Stocks That Pay Decent Dividends
• The Smartest Dividend Stocks to Buy With $400 Right Now
• 2 TFSA Stocks to Buy Now With $7,000
• A Dividend Champion Every Canadian Needs in Their TFSA

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Alaris Equity Partners Income Trust. The Motley Fool has a disclosure policy.