When market headlines grow gloomy, and trade tensions start to boil, it’s only natural to crave something solid … something predictable. For many Canadians, that means shifting focus toward dividend-paying stocks, especially those that deliver monthly income. Slate Grocery REIT (TSX:SGR.UN) might not have the flash of a tech stock or the buzz of a new initial public offering (IPO), but when it comes to stability, it quietly checks all the right boxes. And with a yield hovering around 8.3%, it’s no wonder income-focused investors are taking a closer look.
Image source: Getty Images
Why Slate?
Slate Grocery REIT is exactly what it sounds like. It owns a portfolio of grocery-anchored real estate properties across the United States. These aren’t trendy fashion boutiques or speculative tech campuses. These are the kinds of places where people buy milk, bread, and eggs, no matter what’s happening with tariffs or interest rates. That’s what gives this real estate investment trust (REIT) its edge. Grocery stores are essential, and foot traffic tends to hold up even when the economy is under stress.
As of the end of 2024, Slate Grocery REIT held 121 properties across 24 states. Together, these made up more than 15.7 million square feet of leasable space. The dividend stock maintained a portfolio occupancy of 94.8%, a strong number that reflects consistent tenant demand. Even more impressive, in the fourth quarter (Q4) of 2024, the REIT completed 672,000 square feet of leasing at rates 28% higher than the average in-place rents. That’s not just stability; it’s growth. In a space where rent bumps can be hard to come by, Slate’s ability to sign leases at premium rates shows its properties are in demand.
Value and income
Financially, the dividend stock is holding up well. In its most recent earnings report, Slate reported same-property net operating income (NOI) growth of 4.3% over the trailing 12 months. That may not sound flashy, but in the real estate world, consistent NOI growth is a green flag. It means more money is being generated from existing assets, without needing to stretch for risky expansion. The dividend stock also refinanced over $633 million in debt in 2024, doing so at comparable rates to its maturing obligations. That’s no small feat in a rising interest rate environment, and it speaks to the confidence lenders have in Slate’s assets.
Now, let’s talk dividends. Slate Grocery REIT currently pays a monthly distribution of around $0.10 per unit, which translates to roughly $1.20 annually. As of writing, that works out to an annual yield of about 8.3%. For context, that’s more than four times what a standard savings account pays. And unlike fixed-income products, there’s potential for capital appreciation over time.
And here’s the real kicker. When trade tensions rise, as they are now, consumer behaviour tends to shift. People eat out less and cut back on luxury items, but they still go to the grocery store. In fact, grocery demand often holds steady or even rises in tough times. For Slate Grocery REIT, that’s good news. It means reliable rent payments from tenants. These tenants tend to be large, stable corporations with strong cash flows of their own. If you’re worried about what an economic slowdown or new tariffs might mean, having exposure to something like Slate can help offset the anxiety.
Bottom line
In short, Slate Grocery REIT might not be the most exciting name on the TSX, but it’s one of the steadiest. As trade tensions simmer and the global economy throws the occasional curveball, there’s something deeply comforting about a dividend stock built on grocery stores. People need to eat. And investors? They need cash flow. Slate delivers on both.
