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.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 9, 2023 1:00 pm EST

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.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY
SGR.UN	$14.80	676	$1.17	$790.92	monthly

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.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY
NWH.UN	$9.59	1,043	$0.80	$834.40	monthly

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!