A Dividend Stock Offering 10.6% Yield with Monthly Cash Payouts

In the realm of dividend investing, the allure of steady income streams often guides investors' decisions. Real estate investment trusts (REITs) have long been favored for their high dividends and monthly payouts. However, navigating the diverse landscape of TSX Dividend stocks, particularly in sectors with higher downside risks like office spaces, demands careful consideration. Amidst this landscape, a standout dividend titan in the real estate sector emerges: Allied Properties (TSX: AP.UN).


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Navigating the Challenges

As the owner and operator of urban office properties, Allied Properties (TSX: AP.UN) faces unique challenges in a post-pandemic world. With shares currently trading at $17.04, reflecting a year-to-date loss of 12.7%, the REIT offers an ultra-high dividend yield of 10.6%. The question arises: should yield-hungry investors embrace or shun this opportunity?

An Optimistic Outlook

Michael Emory, founder and executive chairman of Allied Properties, maintains an optimistic view despite prevailing challenges. Emory asserts that while demand for office space may have slowed, it has not collapsed entirely. Anticipating a sector recovery by 2026, Allied Properties remains steadfast in its commitment to shareholders.

Financial Resilience

Addressing concerns about potential dividend cuts, Emory affirms that Allied Properties has no plans to reduce its dividends. Despite falling occupancy rates and rising debt levels, the REIT's sustained cash flow per unit and healthy 80% payout ratio provide a solid foundation. Financial results for Q1 2024 demonstrate resilience, with increases in rental revenue and operating income, coupled with a significant reduction in net losses.

Diverse Portfolio and Strong Demand

Allied Properties boasts a diverse portfolio of distinctive urban workspaces, catering to various needs and preferences. Management highlights strong and quantifiable demand across all categories of office space, providing robust support for the REIT's distribution commitment. With a focus on urban intensification and strategic asset management, Allied Properties is poised for long-term success.

Unlocking Monthly Income Streams

For investors seeking consistent monthly income, Allied Properties offers an attractive proposition. With monthly dividend payments and eligibility for tax-advantaged investment accounts such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), the REIT presents an opportunity for passive income generation. A $17,057.04 investment today could translate into a monthly passive income of $150.10, providing financial stability and growth potential.

A Vision for the Future

Looking ahead, Allied Properties remains intensely focused on the longer-term aspects of its commercial real estate business. Embracing urban intensification and strategic asset management, the REIT aims to achieve a stabilized occupancy rate of 95% by 2026. With the largest and most concentrated portfolio of economically productive urban land in Canada, Allied Properties leverages its competitive advantage to drive sustainable growth and shareholder value.


Allied Properties stands as a beacon of stability and opportunity in the world of dividend investing. With a resilient business model, strong financial performance, and a clear vision for the future, the REIT offers investors the potential for attractive returns and consistent monthly income streams. As the landscape of commercial real estate evolves, Allied Properties remains at the forefront, poised to deliver value and growth for its shareholders.
Location: Canada

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