2 Under-the-Radar Dividend Payers With Solid Growth Prospects in 2024

These under the radar monthly dividend payers could provide good growth prospects in 2024 and beyond.

| More on:
Growing plant shoots on coins

Image source: Getty Images

Here are a couple of monthly dividend payers that are under the radar. They may not be the top choices for new investors who have just started investing, but they appear to have solid growth prospects for 2024 and beyond.

RioCan REIT

RioCan REIT (TSX:REI.UN) took a dive in 2023, falling about 15% year to date to about $18 per unit. The pressure primarily came from higher interest rates and the negative outlook in retail real estate. On a closer look, the retail real estate investment trust’s (REIT) results have actually been quite resilient. For example, its funds from operations (FFO) per unit have been holding up since 2021, while the stock has come down and appears to be undervalued.

The Canadian REIT consists of 192 properties, including 10 that are under development. Its properties are primarily located in key markets across Canada, including the Greater Toronto Area, Ottawa, Montreal, Calgary, Edmonton, and Vancouver.

In the third quarter, it reported a high committed retail occupancy of 98.3%, while its overall committed occupancy was 97.5%. Additionally, it’s able to generate higher rental income from mark-to-market rents. Year to date, its blended leasing spread is 11.2% versus 9.0% a year ago. It also highlighted that its development projects continue to add steady streams of new and diversified net operating income. These are demonstrations of a quality portfolio.

Importantly, management anticipates its FFO payout ratio will be at most 65% this year. So, its current cash distribution yield of close to 6% is sustainable. Given some patience, the stock could deliver a decent upside of 29-50% over the next few years while paying a nice monthly income.

Savaria

Savaria (TSX:SIS) is an unloved small-cap stock that’s trading at similar levels as a year ago. However, it could experience strong growth next year and beyond from merger and acquisition activities and the trend of an increasing aging population.

The $1 billion market cap stock is a global leader in the accessibility industry. It designs, manufactures, distributes, and installs accessibility equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, and elevators for home and commercial use.

In addition, Savaria manufactures and markets a selection of pressure management products for the medical market, medical beds for the long-term care market, and medical equipment and solutions for the safe handling of patients, including ceiling lifts and slings. Furthermore, it converts and adapts vehicles for personal and commercial uses.

Interestingly, Savaria is a Canadian Dividend Aristocrat with a five-year dividend-growth rate of 12.2%. The analyst consensus 12-month price target on Savaria stock is $19.50, which represents a decent discount of 24% or near-term upside potential of close to 32%, at $14.78 per share at writing. At this quotation, it also offers a dividend yield of 3.5%, paid out as monthly income.

Notably, its payout ratio is expected to be a bit high at about 83% of adjusted earnings this year. Should the company be able to grow over the next few years, it would be able to quickly reduce the payout ratio to levels that are more comfortable.

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 Kay Ng has positions in RioCan Real Estate Investment Trust and Savaria. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Construction work on a site
Dividend Stocks

2 Engineering & Construction Stocks You Can Buy and Hold for the Next Decade

Two prominent engineering and construction stocks are buying opportunities before the industry rebounds and grow in the next decade.

Read more »

Canadian Dollars
Dividend Stocks

For a Shot at $5,000 in Annual Passive Income, Buy 1,975 Shares of This TSX Stock

Are you looking to earn steady income? While there is no certainty in stocks, this stock can give you a…

Read more »

Target. Stand out from the crowd
Dividend Stocks

1 Magnificent Canadian Dividend Stock With 33% Upside to Buy and Hold Forever

Dividend stock Brookfield Business Partners LP (TSX:BBU.UN) is a powerhouse of growth, with even more to come in 2024.

Read more »

top TSX stocks to buy
Dividend Stocks

Passive Income: How Much to Invest to Get $6,000 Each Year

TSX energy stocks such as Enbridge can help you earn a passive stream of recurring income.

Read more »

protect, safe, trust
Dividend Stocks

Income Investors: 2 Safe Dividend Stocks to Own for Passive Income for Years

Long-term passive-income stocks should ideally offer enough dividend growth to counteract inflation while preserving or growing your capital.

Read more »

analyze data
Dividend Stocks

The 1 Best Growth Stock on the TSX Today

Fairfax Financial Holdings (TSX:FFH) stock took a hit, but it's still a great growth play for the long-term.

Read more »

Happy family father of mother and child daughter launch a kite on nature at sunset
Dividend Stocks

Got $10,000? That’s All the Start-Up Funds You Need to Get Money for Doing Nothing 

Have you been delaying long-term investments for later? Investing money while you are working can help money work for you.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

Buy 32 Shares in This Glorious Dividend Stock and Create $1,074.88 in Passive Income

This dividend stock is also a growth stock you're going to want on your side over the next year and…

Read more »