Income investors looking to accumulate growth of their portfolios are always on the lookout for attractive investment options. High-yield dividend-paying stocks are ideal for investors of all kinds. You might be in search of something to add to your TFSA in the long term. You might even be looking to make a passive monthly income.
Real estate investment trusts (REITs) are an attractive option for investors looking for a reliable way to make their money work for them. REITs have a reputation for giving shareholders a healthy dividend income. It makes REITs a more reliable investment option to consider than most others on the stock exchange.
We live in uncertain times, where a recession might hit the stock market any time. Nobody knows for a fact when it will happen, but a recession is no longer a matter of if. In times like these, a good REIT can be the saving grace that will not just protect your portfolio but grow it. To this end, Slate Retail REIT (TSX:SRT.UN) may be an ideal option to consider.
The name Slate Retail REIT might be a little off-putting for some people. Is it a company in the retail sector or the real estate sector? Investors are a little wary of retail stocks in light of Forever 21, a major retailer, recently closing down operations in Canada. You should not worry about Slate. The REIT stock is in retail, but it has locations in U.S. grocery stores as well.
Food retailers fare better than most other types of retailers, and perhaps that is what owes to a low-flying Slate. Not really coming in the limelight a lot, Slate has increased by almost 2% in the last six months. Is it a cause for concern or a good thing for value? Considering that investors might be hesitant in buying Slate shares, this could mean the stock has good value today.
There is a likelihood that the $12.98 per-share value of the company at the time of writing makes it a bargain for investors. The fact that Slate has a dividend yield of 8.69% causes a significant impact on how attractive the REIT is for investors. The company pays dividends in U.S. dollars, so you can expect the actual profits to fluctuate a little due to conversion rates.
Typically, if you invest around $30,000 in Slate, you can anticipate an annual dividend income of around $2,600. These are rough figures, and they can likely increase over time. The U.S. dollar might strengthen compared to its Canadian counterpart, or the company might raise dividend payments. Even both of these things can happen.
Calling Slate’s dividend yield juicy is an understatement. The company’s 8.69% dividend yield is fantastic. Between that and steady payouts, I feel inclined to believe Slate REIT could be a massive buy-and-hold option you should consider.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Adam Othman has no position in any of the stocks mentioned.