Income investors are constantly searching for the best possible yields without taking on too much risk.

Here are the reasons why I think RioCan Real Estate Investment Trust (TSX:REI.UN) and A&W Revenue Royalties Income Fund (TSX:AW.UN) deserve to be on your radar.


RioCan is in the shopping mall business with more than 300 retail buildings spread out across Canada.

The REIT is attractive because it owns property located on prime real estate, and its anchor tenants tend to be big, stable companies that serve recession-resistant segments of the retail market.

You know the ones I’m talking about: grocery stores, pharmacies, discount retailers, and businesses that sell the everyday household goods we all need on a regular basis.

RioCan renewed one million square feet of space during Q1 at an average rent increase of 6.2%, so demand remains strong, and investors should feel reasonably comfortable with the outlook for the company’s revenue stream.

The company is in the process of finalizing the sale of its 49 properties in the United States. Proceeds from the deal will be used to reduce debt and invest in new growth opportunities. One project involves the construction of condo units at RioCan’s top urban retail locations. If the concept takes off, investors could see a nice boost to revenues and higher distributions.

The stock has rebounded nicely over the past three months, but investors who buy now can still pick up a solid 5% yield.


The burger business is very competitive, but A&W is serving up some impressive numbers.

The company just reported strong Q1 2016 results. Same-store sales increased 8.6% and net income jumped 64% compared with Q1 2015. The royalty pool added 24 net locations over the past year, and the business continues to expand.

Part of the success is attributed to the strong marketing of the company’s use of beef raised without hormones or steroids, chicken raised without the use of antibiotics, and bacon from antibiotic-free pork.

Seniors are another reason why the business is doing well. The Boomer crowd was a fan of A&W when they were teenagers, and they still flock to the burger stand to indulge in the tasty burgers and gulp down the famous root beer.

A&W just raised its monthly distribution to 13 cents per unit. That’s good for a yield of 5.3%.

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Fool contributor Andrew Walker has no position in any stocks mentioned.