The market has recovered nicely from the volatility and lows that we saw earlier this year. And while the market itself is up an impressive 11% this year, not all stocks are up. Some are trading down, including this stock to buy for lifetime income.
Investors seeking out that opportunity for lifetime income potential should consider investing in RioCan Real Estate (TSX: REI.UN).
Source: Getty Images
Meet RioCan: Your new must-have investment
RioCan is one of the largest real estate investment trusts (REITs) in Canada. REITs provide investors with a unique opportunity to invest in real estate but without the property taxes, mortgage and downpayment hassles.
In the case of RioCan, the REIT’s portfolio comprises an increasing number of mixed-use residential properties, including the core suite of commercial retail sites.
In total, RioCan boasts nearly 200 sites located across Canada, primarily in metro markets where demand remains strong. The mixed-use residential properties, in particular, are situated along transit corridors.
For prospective investors, the lifetime income generation potential from owning this REIT is huge. This is especially true for those considering the more traditional passive-income real estate options, such as owning a rental property.
A rental property comes with a host of other added costs. This includes carrying a mortgage, paying for maintenance and ongoing property taxes. Beyond that, there’s finding and keeping tenants to worry about.
Let’s not forget that getting into the property market demands a down payment that, thanks to the white-hot real estate market, can easily be a six-figure commitment.
Perhaps most importantly, when owning a rental property, the entire investment is allocated to a single property.
One property to carry all that risk? There must be a better way to generate lifetime income without that level of risk and investment.
And fortunately, there is a much better way.
Go on. Be a landlord!
One of the best reasons to consider buying shares of RioCan is for the lifetime income-generating opportunity it can provide. Like a landlord collecting monthly rent, RioCan offers investors a juicy monthly distribution.
As of the time of writing, that yield works out to a very appetizing 6.46%.
This means that a $30,000 investment into this REIT today will generate a monthly income of just over $160.
Prospective investors should note that the income generated from that investment comes without a mortgage payment, without property taxes, tenant issues or a hefty down payment.
In fact, prospective investors who purchase the REIT as part of their TFSA can earn that lifetime income tax-free.
Incredibly, that’s not even the best part.
Investors who aren’t ready to draw on that income yet can choose to reinvest those distributions, allowing them to grow. This can greatly increase any eventual income to draw on in future.
Lifetime income generation is possible
No investment is without risk, and that includes RioCan. Fortunately, this REIT boasts plenty of defensive appeal and stable income generation. This factor alone makes it a top pick for any investor seeking lifetime income generation.
Oh, and let’s not forget that, unlike the market, RioCan currently trades at a discount in 2025.
In my opinion, a position in RioCan should be part of any well-diversified portfolio.
Buy it, hold it, and watch your future income grow.
