If you’re a retiree, instead of slowly chipping away at your precious savings during your retirement, turn them into a stable source of income. One way this can be done is by leveraging the power of dividend stocks.
However, not all dividend stocks are created equal. As a retiree, your appetite for risk can’t be too large. You want to invest in dividend stocks offering a sustainable and reliable source of safe income.
These three dividend stocks are ideal for your retirement portfolio, offering incredibly high yields and stable growth prospects.
Slate Retail REIT
Slate Retail (TSX:SRT.UN) is a REIT with growing operations within the U.S., with a focus on grocery-anchored real estate. It entered the U.S. market following the 2008 recession and has, in a span of just 12 years, acquired a retail portfolio of over 85 properties totalling nearly 11 million square feet. It continuously boasts an occupancy rate exceeding 95%.
The company offers its investors a handsome yield of 8.7%. If you invest $300,000, you get very comfortable annual earnings of $26,100. It has been the sixth consecutive year the company has increased the dividend payouts, and it is likely 2020 would be no different.
With most of its portfolio concentrated in rapidly growing cities like Charlotte, Denver, and Atlanta, and with the company preparing for a new wave of acquisitions, its growth prospect looks fairly stable.
BTB REIT
BTB (TSX:BTB.UN) is an excellent and reliable stock to invest in, offering a yield of an incredible 8.55%. Equally attractive is the company’s policy of giving a monthly dividend payout.
You may be wary of investing, as BTB isn’t exactly a big name in the lucrative Canadian real estate market and only has a market capitalization of around $308 million.
However, thanks to its diversified portfolio and primary focus on the Quebec market, it has a stable and growing cash distribution. Its gross profits for the last 12 months have been $47.64 million, with a revenue of $90.13 million. The dividend yield has remained fairly consistent with a five year average of 9.04%. Right now, its stock is trading cheap at $4.9.
Inter Pipeline
Inter Pipeline (TSX:IPL) is one of the largest employers in Alberta and boasts over $5 billion in assets. The company’s stock is one of the safest to invest in for two primary reasons.
The first is the fact the company effectively holds a near monopoly over the production and distribution of oil in the regions it operates in.
The second reason is 80% of Inter Pipeline’s cash flow stems from cost-of-service and fee-based contracts, making its revenue relatively insulated from global oil price fluctuations.
Thanks to secure cash flow stability and lack of any serious competition, the company can afford to dole out a nice dividend yield of 7.8%.
Foolish takeaway
Putting away all your money in one or two companies, even as promising as the ones mentioned, is a recipe for disaster. It is better to safeguard yourself from dangerous risks and diversify your portfolio. Still, for the portion of the funds you want to reasonably set aside for dividend stocks, these three options are definitely worth considering.
