Retirees: Boost Your CPP by $1,296.36 in 2024

For many Canadians, relying solely on the Canada Pension Plan (CPP) for retirement just does not cut it. The average monthly CPP payment is about $1,200 as of writing, which translates to roughly $14,400 a year. When you consider that the median household income in Canada is about $70,000, it becomes clear that CPP alone may leave many retirees facing a significant income gap. And with costs only rising, how can Canadians bridge the gap?

Dividend stocks!

This is where dividend stocks come into play! Investing in dividend-paying stocks can provide a steady stream of income. This makes these stocks an attractive option for Canadians looking to boost their retirement savings. Dividend stocks often offer yields that can significantly outperform traditional savings accounts or Guaranteed Investment Certificates (GIC). For instance, with average dividend yields around 4-5%, investors can enjoy regular payouts that can be reinvested or used as supplemental income. Plus, many established companies increase dividends over time. This not only helps keep pace with inflation but also contributes to overall portfolio growth.

Moreover, dividend stocks tend to be associated with stable companies that have a proven track record of generating profits, thus making them less volatile compared to growth stocks. This stability can provide peace of mind for investors, especially those nearing retirement. By building a portfolio of quality dividend stocks, Canadians can create a more robust financial cushion to enjoy their golden years. All without the stress of financial uncertainty.

Consider REIT stability

Now, let’s talk about Slate Grocery REIT (TSX:SGR.UN) and why it stands out as an attractive investment opportunity! With a market cap of approximately $753.93 million, SGR.UN has been demonstrating solid earnings momentum, particularly in the grocery-anchored real estate sector.

In the second quarter of 2024, the real estate investment trust (REIT) completed over 706,811 square feet of leasing, achieving new deals at an impressive 28% above the comparable average in-place rent. This strong leasing activity is a clear indicator of demand for high-quality grocery real estate. And this is resilient even in fluctuating market conditions. As Blair Welch, chief executive officer of Slate Grocery REIT, noted, “Favourable fundamentals in the grocery-anchored sector continue to provide tailwinds for our portfolio of high-quality grocery real estate.”

Additionally, SGR.UN’s recent performance showcases a commitment to growth and stability. The REIT’s same-property net operating income (NOI) increased by 3.5% year over year, reflecting the positive impact of its strategic leasing efforts. With 94.8% of its total debt fixed at a weighted average interest rate of just 4.5%, the REIT is well-positioned to weather potential interest rate fluctuations. Moreover, trading at a 42.8% discount to its net asset value, SGR.UN presents a compelling opportunity for investors looking to enhance their portfolios, all with an asset that combines solid income potential with long-term growth prospects.

Bottom line

So, how much passive income could you make? Let’s take that $14,400 and put it towards Slate Grocery REIT. Here is what that could turn into through dividends alone:

That’s right; even without returns, you could earn $1,296.36 in annual passive income, coming out monthly at $108.03!