When the world feels like it’s spinning off its axis, investors tend to flock to assets that pay reliably and stay steady. It’s no surprise, then, that high-yield monthly dividend stocks are back in the spotlight. These income machines don’t promise massive upside, but what they lack in flash, they make up for in consistency. One such stock is Slate Grocery REIT (TSX:SGR.UN). With a monthly dividend and an 8% yield, this real estate investment trust (REIT) may be one of the best hedges against global chaos.
About Slate
Slate Grocery REIT focuses on exactly what its name suggests: grocery-anchored real estate. That might sound boring, but it’s exactly the kind of asset that investors love when the rest of the market turns unpredictable. Grocery stores tend to stay open no matter what’s happening in the world. These generate steady foot traffic and are considered essential. So, landlords like Slate benefit from long-term leases and tenants who rarely miss a payment.
Right now, Slate pays a dividend of $1.17 annually. At a recent price of around $14.50, the yield comes in at approximately 8%. That’s more than double what you’d get from most guaranteed investment certificates (GIC) or bonds. And the fact that the distribution is paid monthly makes it easier to plan your cash flow, especially if you’re retired or reinvesting.
Into earnings
Slate continued to hold steady even as many REITs have faced pressure from high interest rates. In its first-quarter earnings report for 2025, Slate posted revenue of $78.9 million, a 1.5% increase from the previous quarter. Net operating income rose to $52.3 million, and net income came in at $17.6 million. That marked a nice rebound from the fourth quarter of 2024, when net income had dipped slightly. These results show that Slate is managing through rising rates and inflation better than many of its peers.
From a balance sheet perspective, Slate looks well-positioned. It reported $3.22 billion in total assets and $1.98 billion in total liabilities as of its last filing. Its debt is largely fixed-rate and staggered over the next several years, which helps cushion the impact of higher borrowing costs. With a debt-to-assets ratio of around 61%, it’s moderately leveraged for a REIT, but that’s typical for the sector.
Looking ahead
Another strong point is its tenant base. About 84% of its portfolio is anchored by grocery stores like Kroger, Publix, and other large tenants. These are tenants with strong credit and proven ability to operate through economic downturns. In fact, Slate has a 98% occupancy rate across its properties and an average lease term of more than five years. That gives it a lot of predictability when it comes to rental income.
On the valuation side, the dividend stock trades at a price-to-earnings (P/E) ratio of about 16, with a forward P/E closer to 9.5. The price-to-sales ratio is under three. These numbers suggest the dividend stock is fairly valued, especially given its high yield and strong operating results. It’s not trading at a huge discount, but it’s certainly not expensive relative to what it delivers. Even so, investors could bring in $806.13 annually from dividends alone, or about $67 each month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SGR.UN | $14.51 | 689 | $1.17 | $806.13 | Monthly | $9,994.39 |
Bottom line
There are always risks to keep in mind. Interest rates could rise further, which would increase the cost of debt and potentially slow growth. A recession could hit consumer spending, though grocery stores tend to fare better than other retail stores in tough times. And while Slate’s payout ratio is on the high side, the company has kept its monthly dividend steady.
For investors looking for stable, high-yield income, Slate Grocery REIT fits the bill. It offers an 8% yield, dependable monthly cash, and a portfolio of essential real estate. It’s not flashy, but it’s reliable. In an uncertain world, that’s exactly what many portfolios need. If you’re searching for a hedge against global chaos, this monthly dividend stock might be one of the best choices on the TSX today.
