What to Buy: Dream Industrial REIT (OTC: DREUF, TSX: DIR-U)

Why to Buy Now: We’re attempting to dial back the risk somewhat this month with a real estate investment trust (REIT) whose properties have a high occupancy rate, at 95.6 percent across the overall portfolio, and generate solid cash flows.

Dream Industrial REIT owns and operates a portfolio of 205 high-quality light industrial properties comprising approximately 15.6 million square feet of gross leasable area located in primary and secondary markets across Canada.

The REIT enjoys solidly bullish sentiment on Bay Street. And it boasts an ample monthly distribution of CAD0.05833, or CAD0.70 annualized, for a current yield of 7.2 percent.

With a market cap of CAD491.2 million, Dream Industrial is just on the cusp of being a small-cap stock. As such, the trading volume of its OTC listing can be pretty thin. While daily trading volume has risen as high as 122,000 shares recently, most days total volume is just a couple thousand shares.

As such, investors should absolutely use buy limits to build or exit their position. Set your buy limit at or below the current price to avoid moving the market.

Dream Industrial REIT is a buy below USD10.