Canadian investors looking for some ultra-high-yield dividend stocks right now have quite a few options around. With the market performing the way it has, many companies have gone into value territory. Some have seen their dividend yields rise higher and higher, as shares fall lower and lower.
However, if you’re looking for a “screaming buy,” it has to do with more than just a dividend yield for these dividend stocks. These are companies that are going to do well coming out of 2023, and continue climbing for years to come. This comes down to a number of reasons. So, let’s get into them now.
NorthWest REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is the first company I would recommend. You’ll also notice that I get into only real estate investment trusts (REIT) in this article. There’s a reason for that. REITs pay out most of their taxable income to shareholders, usually in the form of dividends.
So, what’s important is to make sure those dividends are stable and will keep coming, no matter what the market does. That’s why I’m getting into NorthWest REIT. There are a few reasons behind this, but the most important is that it’s in the healthcare sector.
Healthcare properties are needed, no matter what happens in the world. NorthWest focuses on healthcare facilities and hospitals, which bring in long lease agreements. It currently has an average lease agreement at 14 years as of writing, with a 97% occupancy rate.
So, when you look at NorthWest stock and see it’s down 41% in the last year, see it as the deal it is. You can pick it up with a massive yield at 9.77% and look forward to a huge rebound after 2023.
Slate Grocery REIT
We learned during the pandemic that essential services was where the best investment should be. Yet while there were some companies that faltered after the end of restrictions, there were others that merely showed the strength that was there all along.
This included Slate Grocery REIT (TSX:SGR.UN), which focuses on grocery chains throughout the United States. The company expanded during the pandemic and has continued to do so since then. Yet shares of the REIT are down about 18% in the last year.
This is again why now is a great time to pick up dividend stocks such as this one. Slate REIT may be down now, but certainly has a strong future ahead of it thanks to its grocery-anchored locations. So, while shares may be down, it trades at a valuable 4.77 times earnings. You can therefore lock up a dividend yield currently at 8.79%!
SmartCentres REIT
Finally, SmartCentres REIT (TSX:SRU.UN) is a bit trickier, but still one of the dividend stocks I would consider a great deal right now. While the company’s locations focus on retail stores, these are smart deals with companies such as Wal-Mart.
What’s more, SmartCentres is expanding. The company is now in an expansion process to “SmartLiving.” This will include investments in everything from condos and hotels to seniors’ residences — all while remaining connected to its retail locations.
While shares trade down 19% in the last year, it’s a great time to get in on this stock. It trades at just 8.61 times earnings as of writing and offers investors a dividend yield at 7.04% as of writing. So, pick up these dividend stocks with these ultra-high yields while they last.
