Passive-income stocks can be a saviour in these trying times. Sure, the Bank of Canada held the interest rate at 5% this week. However, the labour data coming out of the United States left stocks a bit flat. This comes after the strongest month we’ve seen in a while, with November seeing shares rise substantially.
This is all to say that while the market is still recovering, passive income stocks are a great buy. However, make sure to include returns in your passive income futures. After all, a company can’t support a dividend without the cash to do so. With that in mind, here are the two most affordable and strong passive-income stocks that also provide monthly income!
Nexus REIT
Nexus Industrial REIT (TSX: NXR.UN) is a great option for those seeking passive income each month. The real estate investment trust (REIT) focuses on industrial properties, which is why I like it so much in the first place. Industrial properties make up the warehouses, assembly lines and other essential parts of this growing part of the real estate market.
In such a strong, growing sector, it’s clear that Nexus REIT should continue to do well. The problem is that the passive-income stock has seen shares drop, as its fair value and foreign exchange currency have caused the company to see less growth.
Its recent quarter saw net operating income rise to 91% for the fourth quarter from industrial properties. Its occupancy rate also held at 97%, with net operating income hitting $29.3 million. This was a 17.9% increase from the year before. There were further increases across the board, suggesting the stock is bound to see quite a recovery.
Yet shares continue to trade under $8 per share as of writing, with a dividend yield of 8.57%. That dividend comes to $0.64 per share annually, distributed on a monthly basis. So, with shares up 6% in the last two months, now could be a great time to jump back in on this passive-income stock.
Slate REIT
Another strong passive income stock offering monthly dividends is Slate Grocery REIT (TSX: SGR.UN). Slate stock was a strong provider in the past because it provided the essential grocery chains that Americans use across the country. But again, in a higher inflation and interest rate environment, it became tough to maintain.
However, it still remains true that Slate stock continues to hold these grocery-anchored chains across the United States. Further, Slate will see growth recover when the market and economy recover. This could be a great time to consider the REIT.
The passive-income stock continues to see strong growth and leasing fundamentals. This included a 4.6% increase in rental revenue and 1.8% increase in net operating income. However, it still trades at a loss, with net income down 63% year over year. But now, the company argues, could be a great time for value investors to get in.
In fact, slate stock continues to buy back shares at these lower rates. Trading at just $11 per share as of writing, it offers a 10.83% dividend yield as of writing. This comes out as $1.17 per share annually, dished out on a monthly basis as well. Furthermore, shares have increased 11% in the last two months, offering a nice return for those getting in now.
