The Top Canadian REITs to Buy in March 2023

Don’t just buy any REIT, buy these REITs that promise dividends through monthly passive income, and remain a great deal on the TSX today.

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Right now is a great time to find some real estate investment trusts (REIT) for passive income. There are a quite a few out there, but today I’m going to focus on two REITs. These are the best on the TSX today. Because they are in stable sectors, investors will continue to see payouts month after month.

Slate Grocery REIT

Slate Grocery REIT (TSX:SGR.UN) is a great choice for REITs on the TSX today. Slate stock offers a substantial dividend yield, currently at 7.94%, so it’s absurdly high at this point. Furthermore, shares trade in value territory at 5.2 times earnings!

Slate is a strong choice because it’s in the grocery sector. During the pandemic, the company proved its worth through these grocery-anchored chains throughout the United States. Not only did it manage to stay afloat, but also expand!

The company now has an expanding network of grocery stores that remain strong even during this economic climate. Occupancy remains stable and income continues to climb. So you don’t have to worry about whether or not your passive income will suddenly disappear.

Among REITs, it also produces a monthly dividend. So here’s what you could get with a $10,000 investment on the TSX today.


NorthWest REIT

Another one of the solid REITs I would recommend in March 2023 is NorthWest Healthcare Properties REIT (TSX:NWH.UN). NorthWest stock is also strong because of the industry it’s in. Economists continue to recommend investing in healthcare during a downturn. And what’s more stable than healthcare properties?

While NorthWest stock is young, it’s certainly a strong long-term hold on the TSX today. It offers a whopping 8.51% dividend yield as of writing, and trades at just 8.1 times earnings. Plus, it continues to support a 97% occupancy rate, as well as an average lease agreement of 14 years.

The company hasn’t increased its dividend since coming on the market, but there’s a good reason. NorthWest stock is one of the REITs that’s trying to expand right now. It now has a global portfolio of every type of healthcare property. So you can be sure that those increases will come down the line.

Here is what investors could bring in from passive income by investing $10,000 in NorthWest stock today.


Bottom line

If you’re looking for passive income, REITs are great options. Yet many continue to be in sectors that can fluctuate with the winds of the economy. Essential services such as groceries and healthcare remain strong options no matter what the market does. And these companies have proven time and again that no matter what happens, income will keep coming in.

With that in mind, during March 2023 when the market is as low as it is, it’s a great time to invest in these two REITs. Especially considering both offer dividends on a monthly basis!

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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