For many seniors, retirement is uncharted territory, with financial security top of mind as they enter their later years. Fortunately, there’s dividend investing that can provide a source of passive income to supplement government retirement benefits such as the Canada Pension Plan (CPP) and Old Age Security (OAS). It can also help create a more stable, sustainable retirement income.
If you’re hoping to retire soon, a pair of TSX-listed dividend stocks can deliver reliable monthly payouts. Vital Infrastructure Property Trust (TSX: VITL.UN) and Diversified Royalty (TSX: DIV) provide the defensive cash flow retirees need. The real estate investment trust (REIT) has made regular monthly distributions for more than 16 years, while the royalty corporation’s dividend payment history spans nearly 14 years. Best of all, both offer a generous 6.9% yield.
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Healthcare-focused real estate
Vital Infrastructure owns and operates essential healthcare real estate, including medical office buildings, specialized hospitals, outpatient facilities, and life-science/health research centers. Formerly known as NorthWest Healthcare Properties, the $1.3 billion real estate investment trust (REIT) rebranded in March 2026 and has streamlined its business to focus exclusively on being a global healthcare infrastructure platform.
The platform leases properties in North America (U.S. and Canada), Australasia (Australia and New Zealand), and Brazil to government-supported healthcare systems, major hospital operators, and established medical practitioners under long-term contracts. Vital sold its European portfolio to strengthen the balance sheet and enhance financial flexibility.
The investment thesis is that Vital Infrastructure has resilient occupancy, long-dated leases, and durable cash flows. Favourable demographic trends are additional tailwinds, offering protection against economic downturns. Portfolio fundamentals remained strong, as evidenced by the 96.4% occupancy rate and 13.1 years weighted average lease expiry (WALE) at the end of the second quarter (Q2) of 2026.
Suppose you invest today, VITL.UN trades at $5.20 per share (+6.3% year to date). An $8,694.40 investment, or 1,672 shares, will generate $50 monthly passive income.
Multi-brand royalty corporation
Diversified Royalty acquires royalty streams from established, multi-location businesses and franchisors. The $775.8 million multi-royalty company has eight royalty partners from several industries in North America. Mr. Lube & Tires, Canada’s leading quick-lube service business, is the largest royalty partner.
Sutton, Mr. Mikes, Nurse Next Door, Oxford Learning Center, and BarBurrito complete the Canadian royalty pool. Stratus Building Solutions and Cheba Hut are the U.S. royalty partners. It owns the AIR MILES trademarks and rights. Under the licensing arrangement with Bank of Montreal, DIV will receive a fixed annual royalty payment of $3.9 million paid quarterly over 10 years ending January 31, 2036.
The appeal of the small-cap stock to income investors stems from the highly diversified businesses with consistent consumer demand. DIV’s top-line revenues generate steady, inflation-resistant monthly dividend payments. At $4.11 per share, the year-to-date gain is 15.6%, even outpacing the TSX’s +12.8% return.
High-yield income engine
Pairing Vital Infrastructure with Diversified Royalty in a retirement portfolio creates a high-yield income engine. For over a decade, both companies have sustained their monthly payouts, driven by the resilience of their underlying businesses.
The predictable monthly cash flows should ease a retiree’s budget planning. At less than $10 per share combined, the duo represents a compelling option for income-focused investors.
