Retirees: 2 High-Yield Dividend Stocks for Solid TFSA Passive Income

Two high-yield TSX stocks — a grocery-anchored REIT and an industrial-chemicals provider — offer retirees resilient, TFSA-friendly income with solid balance sheets.

Key Points
  • SGR.UN owns grocery-anchored properties with long leases and strong tenants, producing stable, inflation-linked rent and high TFSA-friendly distributions.
  • CHE.UN supplies essential industrial chemicals for water treatment and food production, generating steady cash flow and a well-covered monthly payout.
  • Together, SGR.UN and CHE.UN offer retirees resilient, high-yield income through diversified, recession-resistant businesses and improved balance sheets.

A great income stock pays a generous dividend. Yet there’s more to it for retirees. Retirees need dividends that offer stable, recurring cash flow, a healthy payout ratio, and a business built on essential services that don’t collapse in a downturn. Retirees should look for companies with long histories of maintaining or growing their dividend, manageable debt, and revenue streams that hold up even when the economy wobbles. So, let’s look at two that fit that retirement dream.

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Source: Getty Images

SGR.UN

Slate Grocery REIT (TSX: SGR.UN) is one of the most compelling high-yield dividend stocks for retirees who want reliable, tax-free income in a Tax-Free Savings Account (TFSA). What makes it stand out is the stability behind its distribution. SGR.UN owns a portfolio of grocery-anchored real estate across the United States. People buy groceries in every market cycle, and that dependable foot traffic keeps tenants paying rent even when interest rates rise or consumer spending tightens.

Another advantage is the real estate investment trust’s (REIT’s) long-term lease structure. Many of SGR.UN’s tenants sign multi-year contracts with built-in rent escalators, giving the trust predictable, inflation-protected revenue. Big chains like Kroger, Publix, and Walmart-owned neighbourhood stores anchor Slate’s properties, and these companies rarely vacate grocery locations because relocation disrupts customer habits. This creates a remarkably sticky income base for the REIT and allows it to maintain a high payout without stretching its balance sheet.

SGR.UN also benefits from a portfolio that tends to be undervalued compared to Canadian retail REITs. Slate can buy properties at attractive prices and lock in better yields on new acquisitions. That makes its business model naturally defensive and cash-rich. Even in a high-rate environment, the trust continued to grow rents and maintain strong occupancy. This proved that the underlying properties are some of the most resilient in the retail world.

CHE.UN

Chemtrade Logistics (TSX: CHE.UN) is another of those rare high-yield TSX stocks retirees can own in a TFSA and actually feel confident about. Chemtrade supplies essential industrial chemicals used in water treatment, food processing, oil refining, and manufacturing. These are sectors that keep running no matter what the economy is doing. That reliable, recession-proof demand gives Chemtrade steady cash flow, which supports its generous monthly distribution.

What makes Chemtrade especially compelling is how disciplined management has become over the past few years. The dividend stock cleaned up its balance sheet, reduced debt, improved margins, and focused on long-term contracts with stable customers. As a result, cash flow has strengthened significantly, giving the current distribution a much firmer footing. Chemtrade’s products are also tied to industries with long-term growth tailwinds, like clean water infrastructure and chemical manufacturing. This helps protect the business from economic shocks.

Another advantage is its pricing power. Because many of Chemtrade’s chemicals play critical roles in industrial processes, customers tend to accept price increases more readily than in competitive retail sectors. This allows Chemtrade to pass rising costs through its supply chain and maintain healthy margins, even when inflation or commodity prices move.

Bottom line

SGR.UN and CHE.UN are two top dividend stocks retirees can count on. At writing, SGR.UN offers an 8.12% dividend yield, trading at just 15.3 times earnings. CHE.UN offers a lower 4.5% dividend yield and also trades at 15 times earnings. Here’s what $7,000 put towards both could bring in today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CHE.UN$14.47483$0.69$333.27Monthly$6,990.01
SGR.UN$14.96468$1.21$566.28Monthly$6,999.68

If you’re a retiree looking for safety from your passive-income dividend stocks, SGR.UN and CHE.UN offer it not just now, but in any economic scenario.

Fool contributor Amy Legate-Wolfe has positions in Walmart. The Motley Fool recommends Kroger, Slate Grocery REIT, and Walmart. The Motley Fool has a disclosure policy.

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