Month-to-month dividend shares supply a definite benefit for earnings buyers. As an alternative of ready for quarterly payouts, you obtain 12 cheques a 12 months. This frequency aligns completely with month-to-month payments and permits for quicker compounding for those who reinvest the dividend proceeds.
If you’re seeking to safe a dependable passive earnings stream in 2026, Automotive Properties Actual Property Funding Belief (TSX:APR.UN) is a standout candidate. This distinctive Canadian REIT presents a excessive yield of seven.2% and just lately demonstrated the monetary power to develop its payout.
Automotive Properties REIT: A novel landlord on your earnings portfolio
Whereas most Canadian Actual Property Funding Trusts (REITs) deal with flats, workplaces, or buying centres, Automotive Properties REIT does one thing totally different. It owns a portfolio of 91 income-producing business properties comprising automotive dealerships and restore centres.
The automotive retail trade is very fragmented. Many dealerships are family-owned companies sitting on invaluable land. As these house owners look to consolidate or release capital, Automotive Properties REIT steps in as a specialised landlord.
This area of interest technique has confirmed resilient. The REIT’s properties are important to the operations of its tenants who can’t promote vehicles or service autos purely on-line. The bodily actual property is vital. This dependency helps excessive occupancy charges and dependable hire assortment.
Robust monetary efficiency
The REIT’s most up-to-date third-quarter 2025 outcomes present a enterprise in a robust progress mode. Rental income elevated by 7.9% in comparison with the identical interval final 12 months. This progress was pushed by hire escalations and new acquisitions.
Progress might speed up in 2026 following the acquisition of 15 extra properties in the course of the previous 12 months. The REIT has aggressively grown its portfolio from 29 properties comprising 1.1 million sq. toes of gross leasable space (GLA) by January 2016 to 91 properties comprising 3.4 million sq. toes of GLA going into 2026.
Extra importantly, the REIT is changing into extra worthwhile for its unitholders because the portfolio grows. Its Adjusted Funds From Operations (AFFO), a key metric for REIT distributable money circulate, elevated 8.8% throughout the newest quarter. This progress outpaced the dividend fee, bettering the AFFO payout ratio to a wholesome 81%, down from 86.3% a 12 months prior. A decrease payout ratio means the distribution is safer and leaves more money retained for future progress or distribution will increase.
Purchase this REIT for rising month-to-month passive earnings
Traders typically fear that high-yield dividend shares could not develop their payouts. Automotive Properties REIT defied that development in August 2025 by elevating its distribution by 2.2%.
The REIT now pays a month-to-month distribution of $0.0685 per unit, or $0.822 yearly. With the inventory buying and selling round $11.40, that interprets to a beneficiant 7.2% yield for 2026 and past.
Utilizing the Rule of 72, a 7.2% yield reinvested constantly might theoretically double your capital in roughly 10 years, assuming the inventory value stays secure. After all, if the REIT’s models respect, your whole returns could possibly be even greater.
Managing the dangers
REITs are delicate to rates of interest, as greater charges make borrowing dearer. Nevertheless, administration has been proactive, whilst charges decline. As of late 2025, roughly 84% of the REIT’s debt was fastened, with a weighted common rate of interest of 4.4%. This insulates the stability sheet from speedy volatility within the bond market – ought to there be any.
Traders must also notice that the Dilawri Group is each the REIT’s largest tenant and largest unitholder. Whereas this focus could possibly be seen as a threat, it additionally aligns the tenant’s pursuits with these of the shareholders. The group participated in a non-public placement in late 2025, supporting the belief’s accretive acquisitions-led progress plans. You might be a richly rewarded co-investor with this strategic investor, and earn high-yield month-to-month passive earnings from the REIT whereas watching its progress plan unfold in the USA.
The Silly backside line
Automotive Properties REIT presents a compelling mixture of excessive dividend earnings, area of interest market dominance, and bettering monetary security metrics. Traders searching for a gradual stream of month-to-month passive earnings to fund their life-style or reinvest for the longer term ought to give this 7.2% yielder a more in-depth look.
