All It Takes Is $5,000 Invested in Each of These 3 Dividend Stocks to Help Generate Nearly $1,200 in Passive Income

Amid the current uncertain economic outlook, building a reliable passive income stream has become increasingly important. It can provide greater financial stability while helping offset the impact of persistent inflation. Among the various passive income strategies, investing in high-quality dividend stocks stands out as an effective option, as they offer the potential for regular income alongside long-term capital appreciation.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCYT$14.86336$4,992.96$0.4184$140.58MonthlyAPR.UN$12.17410$4,989.70$0.0685$28.09MonthlyVITL.UN$5.52905$4,995.60$0.03$27.15MonthlyTotal$1,225.15Annually

A $5,000 investment in each of the following dividend stocks could generate more than $1,200 in annual passive income. With that in mind, let’s take a closer look at these income-generating opportunities.

Telus

Amid the continued growth of automation, remote work and learning, and e-commerce, demand for telecommunications services remains strong, creating a favourable environment for telecom providers such as Telus (TSX:T). Driven by demand growth, the company plans to expand and enhance its network infrastructure with a $66 billion capital investment. These expansions could expand its customer base and support average revenue per user. Also, the company is expanding its AI-enabled services and expects to achieve $2 billion in revenue in 2028, representing 30% annualized growth from $800 million in 2025.

Along with financial growth, Telus is focusing on strengthening its balance sheet and has reduced its net debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) to 3.5 times at the end of the first quarter from 3.9 times a year earlier. The company also expects to improve the metric further to 3.3 by the end of this year. Amid improving financial performance, a strengthened balance sheet, and healthier growth prospects, I believe Telus is well-equipped to continue paying dividends at a higher rate, making it an ideal buy for income-seeking investors. Meanwhile, Telus currently pays a quarterly dividend of $0.42 per share, yielding 11.3%.

Automotive Properties Real Estate Investment Trust

Automotive Properties Real Estate Investment Trust (TSX:APR.UN) is another high-yield dividend stock that I believe is well-suited for income-seeking investors. The REIT owns 95 strategically located automotive dealership and original equipment manufacturer (OEM) properties across major urban markets in Canada and the United States. Backed by its high-quality tenant base, Automotive Properties maintains strong occupancy and rent collection rates. Moreover, its long-term net lease agreements, many of which include inflation-linked rent escalators, generate stable, predictable cash flows regardless of broader economic conditions, thereby supporting consistent monthly distributions. The REIT currently pays a monthly distribution of $0.07 per unit, yielding 6.8% on a forward basis.

Meanwhile, the automotive dealership real estate market in Canada and the United States remains highly fragmented, providing significant opportunities for further expansion. In April, Automotive Properties acquired two automotive dealership properties in California for US$30.2 million, further strengthening its portfolio. Supported by its resilient business model, disciplined growth strategy, healthy payout ratio, and stable cash flow generation, I believe Automotive Properties is well-positioned to continue delivering attractive monthly distributions, making it an excellent choice for income-focused investors.

Vital Infrastructure Property Trust

Vital Healthcare Property Trust (TSX:VITL.UN) is my final pick for income-seeking investors. The REIT owns and operates 134 healthcare properties across North America, Brazil, Europe, and Australia. Its highly defensive portfolio, combined with long-term lease agreements and a predominantly government-backed tenant base, supports high occupancy rates, stable rental income, and predictable cash flows. This resilient business model enables the REIT to reward investors with an attractive monthly distribution, currently yielding 6.5%.

Looking ahead, Vital Healthcare is well-positioned to benefit from favourable demographic trends, including an aging population and rising healthcare spending, which continue to drive demand for healthcare real estate. At the same time, the REIT is enhancing its portfolio through a capital recycling strategy to improve asset quality and create long-term shareholder value. It recently generated approximately $145 million from the sale of 33 properties in the Netherlands and Germany and plans to use the proceeds to reduce debt and reinvest in higher-growth opportunities, particularly in North America.

Supported by its resilient cash flows, strengthening balance sheet, and long-term growth initiatives, I believe Vital Healthcare Property Trust is well-positioned to continue delivering attractive monthly distributions.

The post All It Takes Is $5,000 Invested in Each of These 3 Dividend Stocks to Help Generate Nearly $1,200 in Passive Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Automotive Properties Real Estate Investment Trust right now?

Before you buy stock in Automotive Properties Real Estate Investment Trust, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Automotive Properties Real Estate Investment Trust wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $17,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 97%* – a market-crushing outperformance compared to 88%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of July 6th, 2026

More reading

• This 7% Dividend Play Pays Cash Every Single Month
• BCE or Telus: Which TSX Dividend Stock Is a Better Buy Now?
• Use a TFSA to Make $800 in Monthly Tax-Free Income
• 1 TSX Dividend Stock to Consider While It’s Down 50%
• All it Takes Is $3,000 in Telus to Generate Hundreds in Passive Income

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Automotive Properties Real Estate Investment Trust, TELUS, and Vital Infrastructure Property Trust. The Motley Fool has a disclosure policy.