As investors begin to approach retirement, naturally, their priorities begin to shift. The goal becomes less about chasing high growth and more about generating steady, predictable income while protecting the capital you’ve already built. That’s why the best retirement stocks are those that can provide both reliable dividend income today and stable growth to keep up with inflation over time.
That’s why high-quality dividend stocks are so ideal for investors nearing retirement. The best dividend stocks provide consistent cash flow that can help cover living expenses while still offering exposure to long-term compounding.
The key is finding stocks that strike the right balance between yield, stability, and sustainability. A company paying a high dividend isn’t necessarily a good investment if that payout ratio is high and unsustainable. On the other hand, a stock that’s ultra-safe but pays only a tiny dividend isn’t doing much for your portfolio either.
So if you’re looking for high-quality dividend stocks to buy as you near retirement, here’s why CT REIT (TSX: CRT.UN) is one of the very best.
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A steady business with a reliable tenant
There’s no question that many of the best retirement stocks can be found in the real estate sector. These companies are constantly generating millions in cash flow each month, making them some of the best passive income generators you can buy.
And while most investors tend to look for residential REITs first due to their defensive nature, a stock like CT REIT offers investors a tonne of advantages, which is why it’s one of the best dividend stocks to buy for your retirement portfolio.
Although CT REIT is a retail REIT, what makes it unique is its close relationship with Canadian Tire, one of the most recognized brands and retailers in the country.
In fact, not only is Canadian Tire the majority owner of CT REIT’s shares, it’s also its largest tenant, accounting for roughly 90% of the REIT’s rental income.
Therefore, not only does CT REIT generate nearly all of its money from one of the most reliable retail tenants in the country, but because it’s also owned by Canadian Tire, much of their long-term growth potential is aligned.
Furthermore, CT REIT has plenty of organic growth potential, plus, most of its leases include built-in rent escalations that help offset inflation and support steady revenue growth.
So, it’s no surprise that since going public just over a decade ago, CT REIT has increased its revenue, funds from operations (FFO), and dividend every single year, showing why it’s one of the best dividend stocks that Canadian investors can buy for retirement.
Why is CT REIT one of the best dividend stocks to buy for retirement?
Because of its relationship with Canadian Tire and the significant cash flow CT REIT generates, it’s easily one of the best dividend stocks that Canadian investors can buy for retirement.
While many dividend investors gravitate toward stocks with the highest yields, it’s the quality and sustainability of the dividend that matter most. And although investors often have to choose between an attractive dividend yield or solid dividend growth, CT REIT offers both.
Not only does the stock offer a current yield of more than 5.6% today, but it has also increased its dividend every single year since going public. In fact, in just the last five years alone, including through the pandemic when many retail REITs struggled, CT REIT’s annual dividend has increased by over 13%.
Furthermore, looking forward, the stock continues to have compelling growth potential as new developments come online.
In fact, analysts estimate that for both 2025 and 2026, CT REIT’s revenue will grow by nearly 5%. On top of that, analysts estimate that both its dividend and FFO will increase by roughly 3% over each of the next two years.
So if you’re looking for a reliable Canadian stock with strong long-term growth potential and a solid dividend that pays you to hold it, there’s no question that CT REIT is one of the best options out there for investors.
