What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be going over 2 top Canadian REITs with dividends to buy now. Canadian REITs in general are some of the top stocks to buy, but these are also dividend aristocrats giving them a slight edge over their peers! For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
Having a diversified portfolio is crucial to both minimizing risk but also exposing yourself to multiple growth opportunities offered by different market sectors. And in order to build a well-diversified portfolio, finding top Canadian REITs to buy is a crucial step. Real estate is excellent, because it’s an industry that offers stable long-term growth, but it’s also quite defensive. Plus, if you look for REITs that are Dividend Aristocrats and high-quality dividend-growth stocks, you can have confidence that these are some of the best stocks to own for the long haul. If you have followed me for a while now, you know that I personally hold Riocan and Smartcentres in my own portfolio. You know I can easily go over those stocks in this video since they are also both great Canadian REITs, but I like to talk about a bunch of different stocks on this channel, showcasing Canadian stocks that are sometimes always behind the popular ones, but still perform incredibly well in the Canadian market. So if you’re looking to add exposure to real estate, here are two of the top Canadian REITs to buy and hold for years.
A top Canadian residential REIT to buy for long-term growth. Several high-quality REITs have performed well in recent years, especially residential REITs. However, one REIT whose performance has been unbelievable and continues to offer exceptional long-term growth potential is InterRent REIT (ticker symbol IIP-UN). InterRent owns assets mostly in Ontario but also in Quebec and British Columbia. The fund has been focused mainly on growth, spending tonnes of capital to expand its portfolio and acquire more properties in recent years. In addition, InterRent has done an incredible job of investing in these assets to create more value. Not only that, but many of these investments increase the yield its assets are generating. Therefore, in addition to growing its net asset value a lot over the last decade, InterRent has also been increasing its distribution to investors. It’s worth noting, though, that the REIT doesn’t pay much cash out to investors, as its current distribution offers a yield of just 2.25%. With that being said, InterRent retains more capital to invest in growth, which, for years, has been paying off for investors. InterRent is a $2.12 billion market cap REIT headquartered in Ottawa, specializing in residential real estate. However, like I mentioned, the monthly dividends are only a part of why it could be an attractive investment if you are interested in benefiting from the real estate market. InterRent REIT is currently around 15.14$ and has a 12-month consensus price target of $19.63. The REIT trades for a discount from that price target. You can expect to get decent returns on your investment at current levels if it reaches its price target within a year. InterRent is also a reliable dividend-paying asset that has introduced dividend hikes for the last 10 years, showcasing why it’s a Dividend Aristocrat. Therefore, if you’re looking for high-quality REITs to buy that can offer consistently growing income, InterRent is one of the best to consider.
One of the best retail REITs you can own. If you are an investor that’s looking to buy a REIT that offers more income potential than InterRent, then one of the top Canadian REITs I’d recommend is CT REIT (ticker symbol CRT-UN). CT REIT’s largest shareholder is of course Canadian Tire, hence its name. In addition, more than 90% of CT REIT’s income comes from Canadian Tire or its subsidiary banners. So, it’s a stock that, in recent years, has been highly robust and a top performer compared to its retail REIT peers. As long as Canadian Tire remains the powerhouse that it is, CT REIT is an excellent investment. It’s worth noting, though, that if Canadian Tire were to ever struggle, CT REIT would be exposed. And while Canadian Tire was a major reason why CT REIT performed so well through the pandemic, the REIT has found a tonne of growth potential on its own. Most recently, it announced plans to build a massive distribution centre in Calgary that will be a net-zero warehouse powered by green energy equipment located onsite. So, with the stock reporting an occupancy rate of more than 99% and now reporting three straight quarters of no bad debt expenses, you know the 4.7% dividend yield is incredibly safe. Retail is not the top segment real estate investors would consider in this current market, and I don’t blame them, I wouldn’t even consider it, since it’s a little risky right now. The thing is, this REIT is backed by Canadian Tire, a huge retail player which has resources and is, you know, not a random retail property or business, so that has to be taken into consideration before dismissing this stock solely because it’s retail oriented. In addition to its long-term potential, though, CT REIT has proven to be incredibly resilient. So, it’s no surprise that it is a Canadian Dividend Aristocrat and one of the best REITs to buy now. Therefore, if you’re looking to add top Canadian REITs to your portfolio, CT REIT is one of the best and safest to consider.
Hope you guys enjoyed these 2 Canadian REITs that have strong dividend growth making them 2 great dividend aristocrats and also have a great long term stock growth. If I were to pick one REIT out of the two, I would personally go for CRT-UN, which is strongly backed by Canadian Tire and offers an incredibly high and safe dividend yield. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!