There are several industries where you can find high-quality dividend stocks that offer passive income. One of those industries is real estate, where some of the best dividend stocks to buy are high-yield REITs.
REITs can be great investments since their operations are typically defensive. Depending on what subsector of real estate these funds operate in, they can be highly resilient.
And with tenants often signing years-long leases, these funds can offer stability and comfort for long-term investors.
If you’re looking to find the best high-yield REITs on the TSX, here are three to buy now.
A top healthcare REIT offering a high yield for investors
If you’re looking to earn an attractive yield investing in real estate, one of the best high-yield REITs to buy for the long haul is Northwest Healthcare Properties REIT (TSX:NWH.UN).
Northwest owns hospitals and medical office buildings in several countries around the world. This is a business that’s incredibly defensive, and not just because healthcare is so crucial. Over 80% of Northwest’s revenue is either funded directly or indirectly by governments, so it’s incredibly reliable.
Furthermore, after two years of a pandemic, where there were several shutdowns and non-emergency medical procedures were often postponed, there is a tonne of pent-up demand.
Therefore, while Northwest still trades at a reasonable price, and while it offers an attractive yield of 5.8%, it’s one of the best high-yield REITs to buy now.
One of the highest-yielding REITs to buy now
If you’re looking for a dividend yield that’s even higher than 5.8%, you may want to consider True North Commercial REIT (TSX: TNT.UN). True North is one of the best REITs to buy if you’re looking for a sky-high yield. It’s a commercial REIT with 46 properties spread across five provinces and roughly $1.4 billion in assets.
Currently, its distribution offers a yield of more than 8.5%, which is why it’s one of the top high-yield REITs to consider.
It’s worth noting, though, that True North doesn’t offer much growth potential at the moment. However, the distribution is attractive, and with several of its tenants being government agencies, it has a tonne of resiliency in its portfolio.
If you’re looking for the best high-yield REITs to buy now, True North is worth consideration.
One of the best REITs to buy for the long haul
Lastly, a REIT with the lowest yield on the list but still one of the best REITs to buy now is CT REIT (TSX: CRT.UN).
CT REIT is the retail REIT that’s majority owned by Canadian Tire. The fund also gets more than 90% of its revenue from Canadian Tire. And while it only offers a yield of 4.8% today, that’s still an attractive amount. Furthermore, unlike the other two REITs on the list, CT REIT is a Canadian Dividend Aristocrat.
So, while it doesn’t offer as high a yield today, a few years from now, it could offer the highest yield on cost of the three.
In addition to its long-term potential, though, CT REIT has proven to be incredibly resilient. So, it’s no surprise that it is a Canadian Dividend Aristocrat and one of the best REITs to buy now.
Therefore, if you’re a passive-income seeker looking to get showered in dividends, CT REIT is one of the best investments to consider today.
