Retirees: 3 Super Dividend Stocks to Own for Passive Income

Retirees on the hunt for passive income should stash high-quality dividend stocks like Northwest Healthcare Properties REIT (TSX:NWH.UN).

| More on:
money cash dividends

Image source: Getty Images

This time last year, I’d discussed why Canadians could look to build passive income and shift their work-life balance. Retirees should be particularly attracted to this strategy. Historically low interest rates have degraded traditional fixed-income products. Investors need to assume some risk in order to guarantee income that will outpace inflation in this climate. Today, I want to look at three dividend stocks that could allow retirees to gobble up passive income.

Why this REIT is perfect for retirees in 2021 and beyond

Granite REIT (TSX:GRT.UN) is a Toronto-based real estate investment trust that is engaged in the acquisition, development, ownership, and management of logistics, warehouse, and industrial properties in North America and Europe. Shares of this dividend stock have climbed 29% in 2021 as of late-morning trading on November 15. The stock is up 4.2% month over month.

In Q3 2021, Granite REIT saw net operating income (NOI) rise to $84.5 million — up from $76.5 million in the previous year. Meanwhile, adjusted funds from operations (AFFO) jumped to $61.2 million or $0.93 per share compared to $52.7 million, or $0.91 per share, in Q3 2020. Revenue increased to $288 million in the first nine months of 2021 — up from $247 million for the same period last year.

Retirees should look to add this dividend stock that possesses a very attractive price-to-earnings (P/E) ratio of 5.7. It offers a quarterly dividend of $0.25 per share. That represents a 3% yield.

Gobble up passive income with this grocery-focused REIT

Grocery retail stocks offered investors some extra security during the COVID-19 pandemic. Essential services proved to be a solid target in the face of the crisis. Moreover, surging inflation has impacted food prices and given a boost to retailers. Retirees looking to hedge against surging inflation should consider this REIT.

Slate Grocery REIT (TSX:SGR.U) is a Toronto-based REIT that owns and operates grocery-anchored real estate in the United States. Shares of this dividend stock have climbed 18% in the year-to-date period. The stock is up 12% from the same period in 2020.

The REIT released its third-quarter 2021 results on November 2. Its new leasing volume hit a record 229,290 square feet — up 18% from the previous year. Rental revenue rose 6.6% year over year to $34.0 million in Q3 2021. Meanwhile, adjusted funds from operations (AFFO) jumped 28% to $11.4 million. Retirees on the hunt for passive income can rely on its monthly distribution of $0.072 per share. That represents a monster 7.9% yield.

One more passive-income stock for retirees today

Northwest Healthcare REIT (TSX:NWH.UN) is a Toronto-based REIT that owns and operates a global portfolio of high-quality health care real estate. The demand for healthcare services is set to erupt in the years and decades ahead as the developed world wrestles with an aging population. This makes Northwest a great target for retirees. Shares of this REIT have climbed 8.9% in 2021. The stock is up 10% year over year.

In Q3 2021, revenue was largely flat at $95.6 million. It delivered strong portfolio occupancy of 96.9% — up 20 basis points from the previous quarter. Meanwhile, its international portfolio held at a strong 98.5%. Total assets under management jumped 15% from the prior year to $8.5 billion.

Retirees hungry for passive income can rely on Northwest’s monthly distribution of $0.067 per share. That represents a strong 5.9% yield. This dividend stock also boasts a very favourable P/E ratio of 6.7.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Investing

stock analysis

2 Safe Stocks I’m Buying Hand Over Fist Right Now

Although there is still a tonne of uncertainty about the economy heading into 2023, here are two safe stocks to…

Read more »

dogecoin is a speculative investment

Man’s Best Friend: A Retail Stock That Weathers Recession

Pet care could be recession resistant, so Pet Valu (TSX:PET) should be on your radar.

Read more »

oil and natural gas
Energy Stocks

Better Buy: Suncor Energy Stock or Canadian Natural Resources

Suncor and Canadian Natural Resources are generating strong profits. Is one undervalued?

Read more »

Arrowings ascending on a chalkboard
Dividend Stocks

3 TSX Stocks With Dividends That Outpace Inflation

Investors that worry about losing buying power due to inflation could put money into these three stocks! They’re known for…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

Dividend Seekers: Which of These 3 TSX Energy Stocks Is a Better Buy?

Which is a better bet among TSX energy bigwigs?

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

3 Top Value Stocks to Buy in December 2022

Stocks such as Bank of Montreal and NFI Group are trading at attractive and cheap valuations in 2022.

Read more »

edit Person using calculator next to charts and graphs

4 Things to Know About Algonquin Stock in December 2022

Algonquin Power & Utilities (TSX:AQN) stock is down, but did you know these four key facts about it?

Read more »

oil and gas pipeline
Energy Stocks

Better Deal: Enbridge Stock or Pembina Pipeline?

Enbridge and Pembina Pipeline are two top Canadian energy infrastructure stocks. Which is a better deal for income and growth…

Read more »