Got $10,000? This Dividend Stock Could Deliver $37 a Month in Passive Income

If you’re looking for stocks that offer significant amounts of monthly passive income, real estate investment trusts (REITs) are among the best.

REITs usually have high dividend yields and pay their dividends monthly. The end result of this is – or at least can be – consistent monthly cash flow.

In this article, I explore one high yield REIT that could deliver $37 per month in passive income with just $10,000 invested.

Killam Apartment REIT

Killam Apartment REIT (TSX:KMP.UN) is a Canadian residential REIT. It invests primarily in apartment buildings from Ontario to the Maritimes.

Killam Apartment focuses on a particularly reliable part of the real estate market: housing.

While property categories like malls and mixed office spaces face some “obsolescence” risk (i.e., their property category falling out of style), residential real estate will always be with us.

Residential REITs may need to invest in renovations and maintenance, but they don’t need to worry about their entire portfolio needing to be re-purposed due to a lack of demand for its original function. That’s not an insignificant advantage. In the 2000s and 2010s, many retail REITs had to sell or fundamentally transform their properties when e-commerce made certain types of in-person shopping irrelevant. Mall REITs also suffered extreme vacancies in the same period. Residential REITs like Killam don’t have this problem, and that’s a major benefit to holding them.

Dividend potential

One thing about Killam Apartment REIT that many investors find appealing is its dividend. The stock has a 4.5% yield, and the dividend is paid out monthly. If you invest $10,000 in KMP.UN, you’ll get $37.20 in dividend income per month – with some potential for the yield to increase. Here’s the math on that.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYKillam Apartment REIT$16.12620$0.06 per month ($0.72 per year)$37.20 per month ($446.4 per year)Monthly

Valuation

Having established that KMP.UN has a lot of dividend potential, we can now move on to determining whether the stock is an overall good opportunity.

First, let’s look at the dividend – whether it is sustainable, well supported, growing, and so on.

KMP’s $0.72 annualized dividend was supported by $0.79 in adjusted earnings per share (EPS) and $1.23 in funds from operations (FFO) per share in the trailing 12-month period. These metrics indicate that the REIT’s dividend is, in fact, sustainable, as both are comfortably above the dividend payout.

KMP.UN’s five-year dividend growth rate was 1.2%. That is not particularly fast; however, it’s below the growth rate in FFO and cash flows, which argues for sustainable growth. So, KMP.UN offers modest dividend growth as well as sustainability.

Last but not least, we can take a look at KMP.UN’s valuation ratios. KMP.UN is modestly valued by these metrics, trading at:

• 5 times sales.
• 0.64 times book value.
• 13 times FFO.
• 15.5 times adjusted FFO.
• 5.1 times rental revenue.

These metrics are fairly low, arguing that KMP.UN is a good value today.

The bottom line

The bottom line on Killam Apartment REIT is that it’s a rock solid residential REIT that should stand the test of time. The fact that it pays out monthly dividend income is just icing on the cake.

The post Got $10,000? This Dividend Stock Could Deliver $37 a Month in Passive Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Killam Apartment REIT right now?

Before you buy stock in Killam Apartment REIT, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Killam Apartment REIT 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 $20,155.76!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 90%* – a market-crushing outperformance compared to 81%* 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 February 17th, 2026

More reading

• 3 Canadian REITs to Buy in March 2026

Fool contributor Andrew Button has no positions in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.