3 Great Canadian Dividend Stocks to Build Retirement Wealth

If you want retirement income, these three offer it in spades. With dividend yields all above 8%, you’ll be swimming in a sea of cash.

Canadian investors have been obsessed with dividend stocks for some time now. And I get it! You can create passive income that should help you through these difficult times of inflation and lower returns. 

However, dividend stocks are also strong for after these hard times. They can help build wealth by using the passive income to reinvest back into the market. Over time, you’ll build a powerhouse of retirement wealth.

So, which stocks should get you started? Let’s get into three strong dividend stocks to invest in right now.

First National

Investors seeking stable dividend income and growth potential should consider adding First National Financial (TSX: FN) to their portfolio. As one of Canada’s largest non-bank mortgage originators, First National benefits from a diversified revenue stream across residential and commercial mortgage sectors. Plus, it offers an 8.15% dividend yield!

First National has demonstrated impressive financial performance. In the first quarter of 2024, the company reported a revenue increase of 20% year over year, reaching $518.0 million. This growth was driven by a higher interest rate environment and increased mortgage servicing income. The company’s income before taxes surged by 40% compared to the same period in the previous year, highlighting its robust profitability.

First National’s mortgages under administration (MUA) increased by 9% year over year, reaching $145.1 billion as of March 31, 2024. This growth reflects the company’s strong market position in both single-family and commercial mortgage portfolios. The commercial segment, in particular, saw a significant 17% increase, underscoring the company’s expanding footprint in this lucrative market. So, with its consistent dividend payouts, strong financial performance, technological advantages, and strategic market position, FN stands out as a reliable choice for long-term investors looking to build wealth and secure their financial future.

Slate Grocery REIT

Another strong option to consider is Slate Grocery REIT (TSX: SGR.UN). Slate Grocery REIT focuses on grocery-anchored properties in the United States, which are considered essential retail infrastructure. This focus on grocery-anchored properties ensures a steady flow of rental income, as grocery stores are less susceptible to economic downturns compared to other retail sectors. This makes Slate Grocery REIT a more resilient investment, particularly in volatile market conditions — especially with a 10% dividend yield!

Slate Grocery REIT continues to expand its portfolio through strategic acquisitions. Recently, the real estate investment trust completed the acquisition of 14 properties totalling 2.5 million square feet across the United States. These acquisitions enhance the REIT’s income-generating capacity and geographical diversification, further solidifying its market position.

Slate Grocery REIT has consistently reported strong financial results. For the full year of 2022, the REIT reported funds from operations (FFO) of US$1.1 per share, up from US$1.03 in 2021. This improvement in financial performance underscores the REIT’s ability to generate sustainable earnings and support its high dividend yield. With its high and consistent dividend yield, stable business model, strong historical and financial performance, and positive market outlook, SGR.UN is well-positioned to provide both income and growth potential for long-term investors.

Fiera Capital

Finally, a stellar dividend-paying stock to consider as well is Fiera Capital (TSX: FSZ). Fiera Capital is a leading independent asset management firm with over $165.2 billion in assets under management as of March 31, 2024. This substantial AUM underscores the firm’s strong market position and its ability to attract and retain significant investments. And it offers a dividend yield of 10.29%!

Fiera Capital has demonstrated strong financial performance, beating analyst expectations in its latest earnings report. For the first quarter of 2024, the company reported earnings per share (EPS) of $0.25, surpassing the consensus estimate of $0.19. The revenue for the quarter was $168.12 million, highlighting the company’s ability to generate significant income even in challenging market conditions.

Fiera Capital continues to grow through strategic acquisitions and partnerships. Recently, Fiera Comox, a subsidiary of Fiera Capital, acquired an 85% interest in a forestry estate joint venture with Ngāi Tahu Holdings. Such strategic moves enhance the company’s portfolio and provide additional revenue streams. Altogether, this makes FSZ a compelling choice for investors looking to enhance their portfolios with a stable and growing dividend-paying stock.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital and Slate Grocery REIT. The Motley Fool has a disclosure policy.

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