Here’s a Safe Canadian Health Care REIT for Your TFSA

Chartwell Retirement Residences REIT (TSX:CSH.UN) is a health care REIT that provides a 4.75% yield for tax-free TFSA income.

Investors are pretty passionate about their TFSAs. And rightly so, as this Canadian investment account can provide us with tax-sheltered income today and into the future, as unlike the RRSP, withdrawals are tax-free no matter when they are made.

The TFSA limit is up to $63,500 today, and with the new year fast approaching, we will likely have another $6,000 to add to this limit. So this is a good time to think about what investments to add to our TFSA for long-term, reliable income.

Chartwell: a REIT with staying power

Chartwell Retirement Residences REIT (TSX: CSH.UN) is the largest provider and owner of seniors housing communities, ranging from independent living to long-term care. We know that the population is aging, we know that senior communities are on the rise, and we know that Chartwell has been addressing this market with much success.

Furthermore, with increased life expectancy and a population that is wealthier than ever before, Chartwell’s business is well-positioned to continue to thrive. With retirement residences that offer independence, a wide array of services, and care and support when that is what’s needed, Chartwell is a real and valid choice for seniors looking for living and life solutions.

Occupancy recovering from a bump in the road

Occupancy levels have taken a hit in the last couple of years, and as they were hit down to today’s levels of just below 90% (from levels of well above 90%). New competition from the likes of Revera and Sunrise homes, especially in the Ontario and Quebec markets, have taken their toll. Chartwell believes, as I do, that the increase in demand from the aging population will boost demand so that Chartwell will recover to better occupancy levels.

Expanding the network

Along with increased competition, Chartwell was also hit by reduced occupancy levels in its properties that were recently acquired, newly developed, and that have had significant redevelopment. There are 19 such properties that management expects will achieve a stabilized occupancy level of 95%, boosting results in the quarters to come.

Dividend income galore

Chartwell currently offers shareholders a dividend yield of 4.25%, and is coming off four consecutive years of dividend increases that have been possible because of the solid fundamentals of its business. This positive position starts with the aging population. According to recent statistics, the next 20 years will see the number of Canadians aged 75 to 85 increase at a rate that is three to four times greater than the general population.

Foolish bottom line

Chartwell REIT continues to provide reliable income to investors, and those who have stuck with the REIT over the longer term have also generated substantial capital gains from their investment. Because I like to look at long-term performance, I will point out that Chartwell REIT’s 10-year price return is 137%. This does not include dividends, which have added another almost $6 per share in dividends over this time period, or another approximately 100% return. So total return exceeds 200%.

Fool contributor Karen Thomas has no position in any of the stocks mentioned.

More on Dividend Stocks

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

An Ideal TFSA Stock for Retirees, Paying 5.2% Each Month

Here's why this popular Canadian real estate stock is one of the best picks for retirees inside their TFSAs.

Read more »

Hand Protecting Senior Couple
Dividend Stocks

A 4.8% Dividend Stock for Monthly Retirement Income

Sienna Senior Living pays $0.08 a share every month, about a 4.8% yield. See Q2 2026 growth, payout safety and…

Read more »

woman looks at iPhone
Dividend Stocks

Is Telus’s New Dividend Safe? What $10,000 Would Earn You Today

Here’s why Telus’s new dividend looks more sustainable and why the cut could make the stock a better long-term investment.

Read more »

woman relaxes with phone
Dividend Stocks

BCE Earnings Preview: Is the Dividend Still the Main Event?

BCE’s Q3 2026 results will reveal whether its shift from dividend growth to debt reduction is delivering meaningful financial progress.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

This 2% Monthly Payer Is the One Stock I’d Never Sell

Supported by strong fundamentals, favourable industry tailwinds, and promising growth prospects, Savaria offers long-term investors the potential for capital appreciation…

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

Generally, aim for 3–6 months of essential living expenses for your emergency money. For those with more variability in their…

Read more »

RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

The RRSP Deadline is in March: Here’s Why November Starters Come Out Ahead

An earlier RRSP contribution plan spreads the cash commitment and leaves more time to make sensible investment choices.

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

BCE vs. Telus vs. Rogers: Which Is the Best Stock to Buy Today?

Which is the best stock to buy today: BCE, Telus or Rogers? Compare their dividends and cash flow to see…

Read more »