Dividend stocks are great, and real estate investment trusts (REITs) are some of the best out there. But there’s a catch. These are only great buys if the companies themselves are essential. Real estate, as we’ve seen, can be fickle. Investors can’t just hope that buildings will always be full, unless they’re in the right industry.
Two industries that provide this essential investment are industrial properties and consumer staples. Today, we’re going to look at two that offer a great way to create some strong passive income, while also providing safe and stable returns.
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DIR
Dream Industrial REIT (TSX: DIR.UN) is our first option, focusing on industrial properties across Canada. The dividend stock is primed for the picking, demonstrating strong earnings, a higher-than-average dividend yield, and more growth in the future.
During its second quarter of 2025, the dividend stock reported strong results with a 4% increase in funds from operations (FFO). Furthermore, it saw growth in its comparative properties’ net operating income (NOI). Even while facing a 24.4% decline in net income from valuation losses, the stock is still managing debt maturities by making strategic investments to enhance its growth. This focus on cash flow and capital allocation will provide further stability for investors.
In fact, it could even mean more appreciation in dividends for income-focused investors, especially as the dividend stock continues to acquire more properties. These include ones that will enhance its portfolio, seen in the second quarter with $80 million made in strategic acquisitions, especially in Ontario and Quebec. So, for growth in a stable industry that keeps on giving, Dream could be a top choice.
SGR
Slate Grocery REIT (TSX: SGR.UN) is another strong option, given its investment in United States-anchored grocery chains. This sector is an attractive investment for those seeking steady returns while also enjoying capital appreciation from its undervalued assets.
Just like with Dream, Slate had a solid quarter. The company maintained solid same-property NOI growth of 3.6%, driven by leasing strategies as well as favourable rent spreads. Furthermore, despite seeing declines in net income and FFO, the REIT managed to present stable debt management. Even its outlook shows minimal maturities through 2026, so income potential should remain consistent.
Overall, Slate is a strong and valuable option for those seeking a stable income as well as growth. That’s just what comes from investing in a company that’s investing in one thing we all need: groceries.
Bottom line
So, not only are investors likely to continue seeing their share prices rise, but they’ll absolutely see monthly dividend income flooding in. That’s right: monthly. Right now, if you were to put $5,000 towards each dividend stock, you’d be looking at around $58.57 per month, or $702.80 per year!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (per share, annual) | TOTAL PAYOUT (annual) | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| DIR.UN | $12.22 | 409 | $0.70 | $286.30 | Monthly | $4,997.98 |
| SGR.UN | $14.25 | 350 | $1.19 | $416.50 | Monthly | $4,987.50 |
Whether you’re looking at Dream Industrial for its strategic growth and increasing shareholder value, or the stable income from grocery real estate, investors can’t lose. That’s what makes these two Canadian REITs the best option if you’re looking to double your passive income.
