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 some generous passive income providers. Besides their dividend-growth streaks of at least seven years, the dividend yield ranges from 4% to nearly 7%, they also pay monthly. 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.
Dividend investing is worth it regardless of the economic environment. However, during inflation periods, companies paying monthly dividends are better options because cash flows are every month, not quarterly. Real estate investment trust (REIT) is the asset class with the greatest number of monthly dividend payers.
The first REIT pick is SmartCentres (ticker symbol SRU-UN). SmartCentres, at the current price per share, pays an over-the-top 6.84% dividend. This $4.6 billion REIT owns and operates a best-in-class portfolio that consists of retail properties. However, the development of residential rental, seniors’ housing, self-storage, office buildings, and hotels are underway or among the master-planned projects. In Q1 2022, rental revenue and net operating income (NOI) increased 1.85% and 4.11% versus Q1 2021. Net income for the quarter was 370 million dollars, which represents a 511% year-over-year growth. Walmart-anchored shopping centres that comprise the bulk of the retail portfolio were the REIT’s pillars during the pandemic. Management said, “We ended the first quarter with solid performances from all aspects of the business. Operational resilience was demonstrated by solid leasing momentum for both existing and new retail tenants.” As of March 31, 2022, occupancy rates were 97%. It is one of the best Canadian REITs to consider if you haven’t already.
The second REIT pick is Dream Office (ticker symbol D-UN). The mandated lockdowns in 2020 and shift to the work-from-home environment affected landlords of offices, including Dream Office. However, Michael Cooper, the REIT’s president and CEO, the state of Canada’s office market is heading in the right direction, although at a measured pace. He also noted the increasing number of cars in their parking spaces every week. The $925 million REIT owns and operates 29 active office properties. Its in-place and committed occupancy rates after Q1 2022 were 81.7% and 85%, respectively. In the quarter ended March 31, 2022, net income rose 415% to 52.28 million dollars versus Q1 2021. Cooper added, “Our business has continued to navigate through uncertainties in the economy and recovery from the pandemic with resilience.” Dream Office trades at $19.67 per share and pays a 5.09% dividend. Great office REIT to consider.
The third and final REIT pick is Granite (ticker symbol GRT-UN). Granite’s 122 income-producing properties consist of logistics, warehouse, and industrial properties. The locations of the leased real estate are in North America and Europe. This $5.2 billion REIT is a Dividend Aristocrat owing to 11 straight years of dividend increases. If you invest today, the share price is $79, while the dividend yield is 4%. In Q1 2022, revenue and NOI increased 13.2% and 11.9% compared to Q1 2021. Granite’s net income climbed 116.3% year over year to $497.7 million. Based on market analysts’ forecasts, the real estate stock could rebound around 7% in one year. Granite is a good Canadian REIT stock to consider.
Investors have no choice but to accept the reality of the present day. Because of rising inflation, purchasing power will reduce, while real income will erode. If you have confidence in the stock market, the recourse to beat or combat rising prices is to create passive income. The rate-hike campaign of the Bank of Canada is ongoing, but the time frame to curb inflation will never be a set thing. Hope you guys enjoyed these 3 Canadian REITs that offer a good amount of passive income on a monthly basis. 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. It is a win-win situation. 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!