These Canadian REITs Could Help You Generate Passive Income

These REITs are some of the best to consider if you want passive income on top of solid growth over the last several years.

Pixelated acronym REIT made from cubes, mosaic pattern

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If you’ve been looking into Canadian dividend stocks, then you’ve likely already come across real estate investment trusts (REITs). REITs are a strong choice for those looking to gain dividend income, as they much pay out a large portion of net income after tax as dividends.

But while dividends are great, you certainly also want passive income through returns. Let’s look at three REITs with solid dividends as well as returns.

Choice Properties

During this downturn, there are a number of REITs that have been suffering. Those especially connected to real estate in the retail sector have suffered. However, those connected to grocery chains have fared far better. Take Choice Properties REIT (TSX:CHP.UN) for example.

Choice properties in the last few years has switched to focusing on mixed-use properties. It’s now the main REIT managing Loblaw buildings. These buildings have also seen residential properties built on top of them as well.

That provides investors with multiple sources of income from just one property. Shares are now down 7% in the last year and 9% year to date. The stock also trades at 15.53 times earnings, putting it near value territory. Given it’s still up 35% in the last decade, it could be a great time to consider the stock and its solid 5.55% dividend yield as of writing.


Not all retail REITs are created equal, which is why CT REIT (TSX:CRT.UN) is another strong choice these days. The company focuses on Canadian Tire properties across Canada, with about 370 properties on its roster right now. That’s properties that offer Canadian Tire products, true, but also provide Canadians with their automotive necessities. The company is the most popular choice for Canadians across the country for tire changes, oil changes, and more.

These properties tend to have lease agreements nearing the double digits. It’s not just these lease agreements that fuel the stock, but also mixed-use properties as well as distribution centres. So, it continues to do fairly well, even during this downturn.

Even so, shares of CT REIT are down 11% in the last year and 4% year to date. Yet again, given it’s up 52% in the last decade, it’s a great time to consider CT REIT for its 5.89% dividend yield while it trades at 13.63 times earnings.

Granite REIT

Finally, we have Granite REIT (TSX:GRT.UN), which focuses on industrial properties across North America and Europe. The company mainly focuses on these industrial properties that involve themselves with assembly lines, distribution centres, warehouses and more. In fact, one of its largest tenants is Magna International, which continues to create deals that mean more production of automotive parts.

While the rest of these REITs have a focus on companies that need to actually sell something, there continues to be a shortage of industrial properties. Therefore, Granite REIT remains in high demand and likely will for at least the next decade.

Shares are down just 3.5% in the last year and up almost 19% year to date as of writing! You can still grab a 3.83% dividend yield as well to bring in some solid passive income while this stock continues to grow.

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 Loblaw Companies. The Motley Fool recommends Granite Real Estate Investment Trust and Magna International. The Motley Fool has a disclosure policy.

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