Want $575 in monthly passive income? Buy 5,750 shares of this dividend stock

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The TSX bottomed out this week, hitting 52-week lows after the market reacted to new US inflation data. Unemployment insurance claims were on the rise, while inflation continued to rise, even with ever-higher interest rates. This has created a scary situation – one that could lead to a recession south of us by 2023.

The thing is, there are still opportunities in all of this. In fact, long-term investors are probably already aware of many of them. However, it can be scary to think about investing during a recession, which is why you want to invest in something safe and stable.

Today I am going to review what this safe and stable dividend stock should be.

The Best TSX Dividend Stocks for Monthly Income

The best dividend stock for those looking for monthly income has to be Slate Grocery REIT (TSX: SGR.UN). This grocery chain real estate investment trust (REIT) operates across the United States and has actually benefited from rising interest rates. It’s because if there’s one thing people need, it’s food.

As we have seen during the pandemic, no matter what, grocery chains will stay open. This has allowed the REIT to continue to generate stable revenues, even as other companies closed during the pandemic. Its investment in this “essential real estate” has generated earnings above estimates, quarter after quarter. And it should happen again when the results come out next month.

In fact, when it last reported second-quarter earnings, Slate saw growth on the back of a $425 million acquisition of 14 properties. Occupancy remained at 93.4%, up 20 basis points from the prior year, with net operating income up 1.5% year-on-year ‘other. Overall, everything was up while other companies were down.

The numbers don’t lie

Not Only Can You Recoup That Dividend Stock With The Stability Behind It, You Can Get It For A Steal and with substantial passive income to boot. While stocks are down, it’s far in market-beating territory, down just 2.43% since the start of the year! And yet, it remains a commercial flight at 5.7 times earnings.

Now for that dividend. This dividend-paying stock is yielding 9.26% at the time of writing! And again, this comes out every month. So you can create a solid passive income on a monthly basis for life, all for a lot. Plus, it’s a solid defensive stock in these uncertain times.

If you were to buy 5,750 shares at the time of writing, that would bring in $575 every month in passive income! Your investment would total $79,235 at the time of writing. It’s a huge investment, and Fool recommends having a more diversified portfolio, but if you were to buy 5,750 stocks at 52-week highs, it would have cost you $100,683!

At the end of the line

Slate is a great choice for stability in both monthly passive income and defensive play. You can expect stocks to rise faster with an ongoing market downturn. Plus, you can receive immense passive income from the dividend stock while you wait.

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