Canadian investors with limited capital can purchase three price-friendly dividend stocks and earn extra monthly income. You can also build wealth over time if you reinvest the cash dividends.
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Extendicare stock: Ideal for long-term investors
Extendicare (TSX: EXE) is ideal for long-term investors, including retirees. The $767.9 million long-term care (LTC) provider offers housing, care and related services to seniors and has a broad footprint in Canada. It is well-positioned to capitalize on the aging population.
At only $9.20 per share, the year-to-date gain is 32.47% and a corresponding dividend yield of 5.19%. In the first half of 2024, net operating income (NOI) and net earnings increased 33.57% and 65.3% year-over-year to $97.5 million and $38.9 million.
Slate Grocery stock: Resilient and defensive
Slate Grocery (TSX: SGR.UN) is a cash cow. The $808.9 million real estate investment trust (REIT) owns and operates grocery-anchored real estate across U.S. metro markets in 23 states. At $13.68 per share, you can enjoy the ultra-high 8.46% dividend.
The resilient nature of pure-play grocery-anchored focused property assets makes Slate Grocery a defensive holding. Since 94.8% of its tenants offer essential everyday products, the REIT generates durable cash flows in good and bad times. Rising demand and limited new construction for this property type are positive trends.
Regarding food logistics, grocery stores facilitate the last mile of food distribution and other essential goods to end-users or consumers. All the grocers also have omnichannel distribution for click-and-collect and home-delivery grocery sales. Walmart and Kroger are the top two tenants.
“Favorable fundamentals in the grocery-anchored sector continue to provide tailwinds for our portfolio of high-quality grocery real estate,” said Blair Welch, CEO of Slate Grocery. Besides the current market fundaments, he added that the below-market rents within the portfolio will enable the REIT to continue growing revenue and increasing shareholder value.
Pizza Pizza stock: Turning comfort food into income
Buying one share of quick-service pizza brand Pizza Pizza (TSX: PZA) is like buying a single medium-sized pizza that transforms into income. The cost to you is $13.39 per share, and the dividend offer is 6.93%.
The $440.65 million royalty corporation owns the rights to Pizza Pizza and Pizza 73 restaurants. Its franchise-oriented business has been around since 1967. Today, it is one of the most popular pizza chains in Canada. The royalty pool has 672 Pizza Pizza and 102 Pizza 73 restaurants.
“Our national footprint across Canada and omni channel presence provide customers with unmatched convenience to experience our brands,” said Paul Goddard, President and CEO of Pizza Pizza Limited. However, this restaurant stock is a pure-play dividend stock, so don’t expect much price appreciation.
Nonetheless, the dividend track record is mighty impressive. Pizza Pizza has paid 227 monthly dividends (almost 19 years now), dating back to November 28, 2005.
