If there’s one thing reitrees don’t want to worry about when investing in dividend stocks, it’s cuts. A solid payout ratio is pretty much essential when it comes to investing in dividend stocks for passive income in retirement. Yet, this can be all but ignored when picking up these stocks.
So today, I’m going to look at three dividend stocks with completely solid payout ratios. These companies also provide high yields to boot! So retirees can look forward to stable, lifelong income.
Slate Grocery REIT
Slate Grocery REIT (TSX: SGR.UN) currently has a payout ratio of 41.2%. That’s an incredibly stable payout ratio for a high dividend yield currently at 8.72%! This dividend comes out monthly, with annual passive income amounting to $1.17 per share.
The company is supported by its investments in the essential service of grocery-anchored chains. These are located across the United States, and the REIT continues to expand its operations. Acquisitions are a regular occurrence, which continues to bring in more revenue.
Yet shares are trading at just 4.7 times earnings, with the passive income stock down about 18% in the last year. So it’s certainly a great buy on the TSX today for retirees looking at dividend stocks.
Nexus Industrial REIT
Another strong choice is Nexus Industrial REIT (TSX: NXR.UN), which currently has a payout ratio at 35.7%. Again, this is a strong payout ratio for a company currently offering a dividend yield at 6.52%. It too is a monthly passive income provider among dividend stocks, coming to $0.64 per share on an annual basis.
In the case of Nexus stock, it’s a Canadian-based company focusing on growth by investing and acquiring industrial properties, offices, and retail locations. Even in the last few years with the pandemic and economic downturn hurting the markets, Nexus stock managed to increase its operations. As of writing, in its most recent earnings, the company reported an increase in net operating income of 71% year over year.
Yet again, shares trade at a valuable 5.4 times earnings as of writing. Nexus stock is down 26% in the last year. So you can look forward to receiving passive income for a steal among your other dividend stocks.
PRO REIT
Finally, PRO REIT (TSX: PRV.UN) is the last of this batch with a payout ratio of 31.5% as of writing. It currently holds a dividend yield at 8.08%, which also comes out on a monthly basis. This comes to annual passive income of $0.45 per share.
Similarly to the other dividend stocks in this article, PRO REIT focuses on properties in the retail, office, and industrial sector within Canada. Though here the largest revenue comes from its industrial properties. Overall it’s been doing quite well, with over $1 billion in assets, as well as a 9.4% increase in revenue year over year.
More acquisitions are in the company’s future, so retirees can look forward to more dividend income and growth from this stock. Shares are trading at just 3.9 times earnings, down 22% in the last year. So again, lock in a deal from these dividend stocks and create monthly income starting this month!
