How to Buy Dream Industrial REIT Stock in Canada [2024]

Summary: In this guide, we’ll explore how to buy Dream Industrial REIT stock in Canada with Interactive Brokers, our go-to online broker platform.

About Dream Industrial

Dream Industrial REIT is a publicly-traded real estate investment trust focused on owning and operating a diverse portfolio of industrial properties. Some of these properties can include warehouses, distribution centers, and manufacturing facilities.

By investing in Dream Industrial REITs (TSX: DIR.UN), you’re essentially becoming a partial owner of a collection of income-generating industrial real estate assets. The trust aims to provide investors with regular rental income and potential capital appreciation over time.

Buying REITs

Purchasing shares in a REIT is similar to buying stocks of a company. So, when you invest in a REIT like Dream Industrial, you’re buying a piece of the overall portfolio and benefiting from its performance. REITs are required by law to distribute a significant portion of their earnings to shareholders, making them an attractive option for income-oriented investors.

How to buy Dream Industrial REIT stock: Step-by-step

If you’re interested in buying Dream Industrial REIT stock, you can follow our simple step-by-step guide below:

Step 1: Choose a brokerage

To get started, you’ll first need an online brokerage account. However, there are various options out there, making it a bit harder for novice investors to settle. This is why you should research different options and select a brokerage that offers trading of Canadian stocks and REITs and aligns with your investment strategy the best.

That said, our go-to brokerage for REIT investments is Interactive Brokers. It’s fully licensed and regulated by the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Furthermore, it’s home to thousands of investors worldwide, and it also offers a myriad of benefits, such as:

• Low commissions and financing rates to maximize returns;
• Global access to REITs, stocks, futures, bonds, and funds;
• Trading efficiency with advanced technology;
• Secure trading experience.

Step 2: Open an account

Once you settle on a brokerage platform that suits your investment strategy the best, you should open an account. So, just follow the brokerage’s account opening process. This is typically a straightforward process. All you’ll need to do is provide personal information, identification, and financial details, and your account will be set.

Step 3: Fund your account

The next step is to transfer funds into your brokerage account. Luckily, most brokerages offer various funding options, including bank transfers and electronic deposits. Again, just follow your chosen brokerage’s instructions and deposit funds into your account.

Note: Make sure to deposit enough funds for the desired REIT as well as for any additional fees that might come into play.

Step 4: Research DIR.UN

Although you just funded your account, you shouldn’t rush things. The thing is—before making any investment, it’s key to research Dream Industrial REIT. By doing so, you’ll understand its performance history, portfolio composition, management team, and future growth prospects. With this information, you’ll be able to make an informed decision.

Step 5: Place an order

Once you’re confident about investing in DIR.UN, log in to your brokerage account. Search for the stock using its ticker symbol, DIR.UN. Once you find it, enter the number of shares you want to purchase and select the type of order. These include:

• Market orders: Buy at the current market price;
• Limit orders: Set a specific price to buy.

Step 6: Monitor your investment

After placing an order, most novice investors would think that that’s it. However, there’s one more step. This is monitoring your investment. So, after purchasing DIR.UN shares, you should keep an eye on your investment. You can do so by monitoring the REIT’s performance, quarterly reports, and any news that may impact its value.

DIR.UN price today

Pros and cons of buying Dream Industrial REIT stock

What to avoid when buying REITs

A major common mistake novice investors make when buying REITs or making any other investment is ignoring research. Namely, they fail to check the performance of the REIT they desire, its portfolio, and even management. All this can lead to uninformed investment decisions, which can affect the potential profit negatively.

However, ignoring research isn’t the only mistake to make. Avoid these as well:

• Overlooking fees: Be aware of any management fees, transaction costs, or other charges associated with investing in a particular REIT;

• Chasing high yields: While a high dividend yield can be appealing, it’s important to assess the sustainability of those dividends over time;

• Neglecting market trends: Keep an eye on trends in the industrial real estate market and broader economic conditions that could impact the performance of the REIT.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Dream Industrial REIT stock

Can I buy Dream Industrial REIT stock directly from the company?

No, you’ll need to open an account with a brokerage like Interactive Brokers to purchase DIR.UN shares.

Are REIT dividends taxed differently?

Yes, REIT dividends are generally taxed as ordinary income. Hence, be sure to consult a tax professional for specific guidance.

What's the minimum investment for buying REIT stocks?

The minimum investment varies depending on the brokerage you choose.