If you’re looking for consistent dividend payers, you need two things. First, you need Dividend Aristocrats. These are companies that have at least five years of consecutive dividend increases. Then, look at the company’s dividend-payout ratio. You want a company that holds a ratio between 50% and 80%. That way, they put enough focus on the dividend without putting all their cash towards it.
So, where are some of these silent wealth builders for Canadians seeking passive income — both from dividends as well as returns? Here are two to consider on the TSX today.
CT REIT
First off, if you’re looking for passive income, then real estate investment trusts (REITs) are some of the best options out there. These companies must pay out 90% of net income to shareholders, usually in the form of dividends. CT REIT (TSX: CRT.UN) is no exception.
But here’s the thing: CT REIT has been struggling over the last few years. The pandemic led to struggles, and so did rising interest rates and inflation. However, this has put the company into valuable territory, especially for passive-income seekers looking for growth and dividends.
CT REIT has seen a lot of growth in terms of new properties and hasn’t slowed down, even purchasing more during its most recent earnings report. Furthermore, it still holds an incredible 99.1% occupancy rate. And these are long-term lease agreements investors can look forward to.
Yet shares are down 9% year to date, trading at just 14.78 times earnings. In the last month alone, shares of CT REIT have jumped up by 6% as of writing. Meanwhile, you can bring in a dividend yield of 6.17% as of writing. And while the payout ratio is at 89%, that should come down as shares rise higher.
goeasy
For passive-income seekers wanting even more returns, consider goeasy (TSX: GSY). Shares of goeasy stock have hit 52-week highs recently and don’t look as if they’ll be slowing down anytime soon. This comes as the company has proven higher interest rates haven’t hurt the company’s bottom line. In fact, it’s doing better than ever.
The loan provider achieved record loan originations quarter after quarter, despite being on the market for over 20 years and trading during some of the most trying times of high interest rates. Despite all this, shares of goeasy stock have risen straight up, especially as it announces more buybacks to keep investors coming back for more.
Sure, shares are up 41% year to date, but more is certain to come as we enter a better interest rate environment. Right now, Canadians are seeking lower interest rates, sure. But in the future, they’ll have more cash on hand and be willing to take out more loans. And this will be where goeasy stock shines.
For now, you can bring in shares still trading at a valuable 13.36 times earnings, with a 2.44% dividend yield as well. It may even boost that with a payout ratio of 32%. So, it’s yet another of these Dividend Aristocrats offering everything from secure dividends to more returns in the near and distant future for passive income.
