Canadian retirees are searching for high-yielding stocks to help them plug the gap in their monthly expenses.

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 a closer look.


RioCan owns more than 300 shopping centres in Canada and just completed the sale of its 49 properties in the United States.

The company’s core Canadian tenants are usually large companies that sell recession-resistant items such as pharmaceuticals, groceries, discount products, and daily household goods.

This means the largest part of RioCan’s revenue comes from renters who are unlikely to close up shop in the event of an economic downturn. These companies are also less at risk from online competitors.

Demand remains strong for RioCan’s properties. The company renewed one million square feet of space during Q1 2016 at an average rent increase of 6.2%. Funds from operations in the quarter came in at $148 million, up 7% from the same period last year.

RioCan is using the proceeds from the U.S. asset sale to pay down debt and invest in new growth opportunities. One development to keep an eye on is the company’s plan to build condos at some of the top urban sites. If the concept is a success, shareholders could see a nice boost in revenue in the coming years.

RioCan pays a monthly distribution of 11.75 cents per unit for a yield of 5%.


The burger market is pretty competitive, but A&W continues to expand and is delivering fantastic results.

In fact, same-store sales from the company’s 800 locations were 9% higher in Q1 2016 when compared with the same period last year.

The success can be attributed to a number of factors.

First, A&W is often located in high traffic locations such as food courts and highway rest stops.

The company is also differentiating itself by promoting the fact that it only sells beef raised without the use of hormones and chicken raised without the use of antibiotics.

Apparently, that’s a big deal for today’s fast-food fans.

Another factor is the boomer crowd. A&W was a favourite place for today’s retirees back when they were teenagers, and the group still enjoys gobbling up the tasty burgers and washing them down with the famous root beer.

A&W just raised its monthly payout to 13 cents per unit, which is good for a 5% yield.

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