3 super dividend-paying stocks to own for passive income

cash dividends

Written by Ambrose O’Callaghan at Motley Fool Canada

This time last year I discussed why Canadians might be looking to build passive income and change their work-life balance. Retirees should be particularly drawn to this strategy. Historically low interest rates have downgraded traditional bond products. Investors have to take some risk in order to guarantee income above inflation in this climate. Today i want to watch three dividend stocks which could allow retirees to swallow passive income.

Why this REIT is perfect for retirees in 2021 and beyond

FPI Granite (TSX: GRT.UN) is a Toronto-based real estate investment trust dedicated to the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe . The shares of this dividend-paying stock climbed 29% in 2021 by the late morning of November 15. The stock is up 4.2% month over month.

In the third quarter of 2021, Granite REIT saw its net operating income (NOI) increase to $ 84.5 million from $ 76.5 million the year before. Meanwhile, Adjusted Funds From Operations (AFFO) jumped to $ 61.2 million, or $ 0.93 per share, from $ 52.7 million, or $ 0.91 per share, in the third quarter of 2020. Revenue increased to $ 288 million in the first nine months of 2021, from $ 247 million for the same period last year.

Retirees should look to add this dividend stock which has a very attractive price / earnings (P / E) ratio of 5.7. It offers a quarterly dividend of $ 0.25 per share. This represents a yield of 3%.

Suck Passive Income With This Grocery Focused REIT

Retail grocery stocks have offered investors additional security during the COVID-19 pandemic. Essential services have proven to be a strong target in the face of the crisis. What’s more, soaring inflation impacted food prices and gave retailers a boost. Retirees looking to hedge against rising inflation should consider this REIT.

FPI Grocery Slate (TSX: SGR.U) is a Toronto-based REIT that owns and operates grocery real estate in the United States. Shares of this dividend stock have climbed 18% in the period since the start of the year. The title is up 12% compared to the same period in 2020.

The REIT released its third quarter 2021 results on November 2. Its new rental volume reached a record 229,290 square feet, up 18% from the previous year. Rental revenue increased 6.6% year-over-year to $ 34.0 million in the third quarter of 2021. Meanwhile, Adjusted Funds From Operations (AFFO) jumped 28 % to $ 11.4 million. Retirees looking for passive income can count on its monthly distribution of $ 0.072 per share. This represents a monster return of 7.9%.

One more stock of passive income for retirees today

Northwest Healthcare REIT (TSX: NWH.UN) is a Toronto-based REIT that owns and operates a global portfolio of high quality healthcare real estate. The demand for health services is expected to explode in the years and decades to come as the developed world grapples with an aging population. This makes Northwest a great target for retirees. Shares of this REIT climbed 8.9% in 2021. The stock is up 10% year over year.

In the third quarter of 2021, revenue was largely flat at $ 95.6 million. It recorded a strong portfolio occupancy of 96.9%, up 20 basis points from the previous quarter. Meanwhile, its international portfolio held steady at a solid 98.5%. Total assets under management jumped 15% from the previous year to $ 8.5 billion.

Retirees hungry for passive income can count on Northwest’s monthly distribution of $ 0.067 per share. This represents a strong yield of 5.9%. This dividend-paying share also benefits from a very favorable P / E ratio of 6.7.

The post office Retirees: 3 super dividend stocks to own for passive income appeared first on The Motley Fool Canada.

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Foolish contributor Ambrose O’Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

2021


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