I always prefer calculating how much income an investment could actually generate before deciding whether its dividend yield is attractive. While a percentage might look impressive on paper, converting it into monthly dollars makes the potential benefit much easier to understand.
For example, if you want to earn an extra $100 each month, the amount you need to invest will depend heavily on the yield of the dividend stock or fund you choose. On the one hand, higher yields can reduce the initial investment required. On the other hand, they can also come with additional risks that investors shouldn’t overlook. That’s why I’d check whether the business produces enough cash to cover its payments and whether its debt, operating costs, or weaker demand could put future dividends under pressure.
In this article, I’ll highlight one such monthly dividend stock that could help you earn $100 a month from an investment of around $14,520.
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A high monthly dividend stock with a juicy yield
If you’re looking to build a steady monthly passive income stream, BTB Real Estate Investment Trust (TSX: BTB.UN) could be an attractive stock to consider right now.
This Montréal-based real estate investment trust (REIT) owns a well-diversified portfolio of industrial, necessity-based retail, and suburban office properties across Canada.
BTB stock has slipped 7% over the last year to currently trade at $3.63 per unit, giving it a market cap of about $323 million. On the brighter side, the recent pullback has made its monthly distributions even more attractive for income-focused investors, with a yield of 8.3%.
Clearly, the REIT’s recent stock performance doesn’t look encouraging. And some of this weakness comes amid challenges such as tenant departures, vacant properties, and rent concessions. Nevertheless, BTB’s leasing initiatives and ongoing investments are helping it navigate these challenges.
How the trust is navigating temporary challenges
In the second quarter, BTB’s rental revenue rose 4.5% year-over-year (YoY) to $31.9 million. This increase was mainly driven by the impact of a non-cash lease accounting adjustment in the year-ago quarter, along with new leases and higher rental rates on renewals. However, tenant departures and rent reductions partially offset these gains.
Similarly, the REIT’s quarterly net operating income jumped 10.5% YoY to $18.9 million, while its cash net operating income rose nearly 2%. More importantly for income investors, BTB’s adjusted funds from operations (AFFO) rose to 9.8 cents per unit from 9.5 cents a year ago.
These improvements also helped the trust reduce its adjusted AFFO payout ratio to 76.5% from 79.2%, suggesting better distribution coverage.
Why BTB’s monthly income potential looks attractive
Besides its improving quarterly financial performance, BTB’s generous monthly cash distributions make it even more interesting for investors seeking regular passive income.
In October 2026, the trust announced a monthly cash distribution of $0.025 per unit, or $0.30 per unit annually. Based on its current unit price of $3.63, you could buy 4,000 units for $14,520 and earn $100 every month, or $1,200 annually.
Moreover, BTB has been actively repositioning its property portfolio toward industrial real estate to support long-term growth. In March 2026, it acquired three fully leased industrial properties in Leduc, Alberta. More recently, in October, the trust purchased another industrial property in Acheson for $18.8 million.
Together, these two industrial acquisitions represent an investment of $50.3 million and are expected to contribute roughly $3.7 million to its annualized net operating income. I believe such investments could gradually strengthen BTB’s rental income and support its monthly distributions.
Foolish takeaway
Although its 58.1% debt ratio remains a risk worth watching, BTB’s improving quarterly payout coverage, continued leasing efforts, and focus on industrial properties make it an appealing high-yield stock to consider for monthly passive income.
