It can be all well and good to recommend long-term holds that eventually lead to incredible dividends. Passive income that you can look forward to every quarter, even every month! But retirees don’t have that kind of time. They need dividend stocks that pay well right now.
So this one is for you. Let’s look at three dividend stocks that pay strong, solid dividend yields with stable payouts. What’s more, you can still hold them for decades to come.
Slate Grocery REIT
Grocery real estate investment trusts (REIT) have been recommended over and over by analysts lately. Their popularity comes from the stable cash flows that these REITs produce. And Slate Grocery REIT (TSX:SGR.UN) has proven as much.
Slate stock currently holds an incredible 8.9% dividend yield as of writing, and a stable payout ratio at 41.2% as well. Shares are down 13% in the last year, providing a great opportunity for retirees looking to gain some solid passive income offering high yields. What’s more, it’s one of the dividend stocks that pay out monthly.
Another strong area to look for solid passive income is through royalty companies. These companies simply collect cash from their franchise locations. This makes those payments stable even during downturns. And A&W Revenue Royalties Income Fund (TSX:AW.UN) is, therefore, a solid and growing option.
Shares of A&W Royalties is down about 8% in the last year, and currently offers a dividend yield at 5.19%. What’s more, its payout ratio still remains at a stable 89% as of writing. Therefore, retirees looking for dividend stocks that provide safe income should certainly consider this stock.
Finally, retail stocks have been hit hard lately. But not Canadian Tire Corporation (TSX:CTC.A). Shares continue to do well, thanks to the company’s growing presence in Canada. It remains a top discount option during economic downturns. Canadians continue to go to the company for auto repairs. The popular retailer also has a new Triangle Rewards program, several acquisitions, and gas locations to consider as well.
Shares recovered in the last year, and are now up 2% in 52 weeks. CTC.A still trades near value territory at 16.2 times earnings, offering a 3.88% dividend yield as well. And, of course, it too holds a strong 33% payout ratio as of writing.
Let’s say you’re a retiree looking to create significant cash flow while the market is down. You decide to put $6,000 into each of these stocks to see how much you can create per year. Below, I’ll go through what your initial investment would look like, as well as where it could end up in the next year should shares hit 52-week highs.
|COMPANY||RECENT PRICE||NUMBER OF SHARES||DIVIDEND||TOTAL PAYOUT||FREQUENCY||TOTAL PORTFOLIO|
|SGR.UN – low||$13.17||456||$1.18||$538.08||monthly||$6,000|
|AW.UN – low||$37.20||161||$1.92||$309.12||monthly||$6,000|
|CTC.A – low||$176||34||$6.90||$234.60||quarterly||$6,000|
|SGR.UN – highs||$16.38||456||$1.18||$538.08||monthly||$7,469.28|
|AW.UN – highs||$42||161||$1.92||$309.12||monthly||$6,762|
|CTC.A – highs||$185.89||34||$6.90||$234.60||quarterly||$6,320.26|
As you can see, you could turn an $18,000 portfolio into $20,551.54, along with $1081.40 in annual dividends. That’s total returns of $3,632.94 in just one year!