This is your last chance to collect the upcoming dividend on a safe stock that yields over 9.7%.

That’s right. I’ve found a company that generates so much cash, it’s able to pay more than TRIPLE the dividend of your typical blue-chip stock. In fact, shareholders in this remarkable business earn up to four times more in retirement income than an RRSP.

But if you want to collect this giant dividend, then you have to act fast. The next round of cheques are scheduled to be mailed out in a few weeks. To be eligible, you have to become a shareholder of record by Friday, June 26. Let me explain…

The energy patch has not historically been a great place to look for dividend income, but that might be about to change.

Drilling for oil is an expensive business. As a result, producers are forced to plough almost all of their profits back into operations just to keep the lights on. That’s why outside of a few super majors or master limited partnerships, few energy stocks ever sport big yields.

That was true, at least, before the current downturn. The recent drop in crude prices, however, has knocked down valuations on many high-quality oil stocks. Investors can now find juicy payouts in shares of battered firms, many of which are yielding 5%, 7%, even 10%.

Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is one of my favourites. Only 10 years ago, the company was an obscure start-up based out of Calgary. But through a series of savvy acquisitions, Crescent Point has assembled a rich portfolio of assets across Utah, Alberta, and Saskatchewan.

As a result, the stock is now gushing dividends. Today Crescent Point pays a monthly distribution of $0.23 per share, which comes out to an annual yield of 9.7%. Needless to say, that’s one of the tallest payouts in the Canadian oil patch.

With a payout like this, it doesn’t take a large investment to generate some serious cash flow. Starting with a $15,000 investment, you can earn an extra $120 in monthly income. With a $150,000 investment, you can collect $1,200 per month.

And while other energy companies are struggling under the weight of low oil prices, Crescent Point is under no immediate pressure to cut its dividend.

Before rates started plunging last summer, management locked in prices for some of its future production. As of May the company had hedged nearly half of its oil output through the remainder of 2016 at an average price of more than US$90 a barrel.

It’s worth noting that Crescent Point has maintained its dividend since 2008, and energy has had lots of ups and downs in that time. Oil prices would have to fall to less than US$45 a barrel—and stay there for six months or so—before management would even consider a cut. And if the company ever did need to conserve cash, it could always cut back on capital spending.

Collect up to $1,200 in monthly income starting July 15

Bottom line, despite the recent drop in oil prices, Crescent Point still pays out one of the safest distributions around. In fact, the company is exploiting its strong financial position to scoop up overleveraged rivals on the cheap. Crescent Point could actually exit the industry’s current downturn in a stronger position than it entered.

However, if you want to start collecting these “oil-well royalties,” then you have to act fast. The next round of distributions are scheduled to be mailed out in a few weeks. That’s why you need to become a shareholder by June 26 to be eligible to collect your first dividend cheque on July 15.

The post Collect Up to $1,200 in Monthly Income Starting July 15 appeared first on The Motley Fool Canada.

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Over the past few years, some of the world’s smartest money managers have been quietly accumulating positions in a little-known corner of the tech industry. According to industry sources, this technology could be bigger than the iPhone, 3D printing, and even the personal computer. Early estimates predict this emerging market might soon be worth up to US$2 trillion.

Now their bet is paying off. Some of these companies have already reported blowout profits and this might only be the beginning. Let me explain…

How to strike it rich in the second Internet gold rush

Picture this…You wake up in the morning and your coffee maker automatically brews a fresh pot. As you drain the last drop of cream, your refrigerator orders a refill. Then after, you hop into the car and your vehicle dashboard sends an alert. There’s a traffic jam on the main drag, so your smartphone gives you an alternative route to work. Your office computer is notified and reschedules that nine o’clock meeting.

These ideas might sound farfetched. In fact, it resembles something out of a science fiction movie. The crazy part is that all of these innovations are possible today thanks to the Internet of Things, or IoT.

Simply put, the IoT is the connection of people and objects to the Internet. Today, more than 99% of all “things” are unconnected. But soon, just about everything you use—including your car, T.V., and appliances—will be online.

However, the household is just the beginning. For instance, the IoT could allow sensor-equipped shopping carts to improve a customer’s experience in a store and boost sales. Moisture detectors could manage irrigation systems to save water. Traffic lights could be remotely controlled to reduce energy use.

In short, the applications for cities, countries, and companies is enormous. For instance, Cisco CEO John Chambers predicts that by 2020

• the market for IoT products and services could hit US$2 trillion;
• the data equivalent of every movie ever made will be transmitted each minute; and
• the IoT could add US$19 trillion to the world’s gross domestic product each year.

If that sounds like an opportunity to you, I’d have to agree. Even if the IoT only lives up to a fraction of the hype, companies that collect, store, and analyse all of this data are poised to make a fortune.

Sierra Wireless Inc. (TSX:SW)(NASDAQ:SWIR), an emerging company based out of British Columbia, is positioned to do exactly that. In essence, Sierra is building the nervous system of the IoT. Its wireless modules allow ordinary objects to connect to the Internet, creating the networks needed for all of these devices to talk to one another.

BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY), too, is looking to strike its claim in the new Internet gold rush. Last year, CEO John Chen announced Project Ion—a series of initiatives designed to put the company at the centre of the IoT revolution.

“While there are five billion handsets in the world that we want to connect to, there may be 500 billion devices out there,” Mr. Chen wrote last year. “That presents a tremendous opportunity for an organization with the experience and track record of QNX.”

Connecting 500 billion devices to the Internet would generate an enormous amount of data. But if BlackBerry has its way, however, it can provide the tools to distill this deluge into actionable information. So, where Apple and Google have built the apps to gather these facts and figures, BlackBerry is working hard to organize all of this data into something useful.

The smart money is betting on the Internet of Things; should you buy, too?

Of course, I’m not the first person to spot this opportunity. Some of the world’s smartest money managers have also been quietly building positions in companies on the forefront of this boom.

According to SEC filings, billionaire technology investor Chuck Royce has accumulated an US$8.4 million stake in Sierra Wireless. Other hedge fund managers, including Prem Watsa, Irving Kahn, and Jeff Buick increased the size of their positions in BlackBerry last quarter.

What could have these money mavens so excited? I’d say it could mean only one thing: they see an epic rally ahead.

The post It’s BlackBerry Ltd. vs Sierra Wireless Inc. in the Battle for the Internet of Things appeared first on The Motley Fool Canada.

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For many, the biggest challenge when it comes to investing is fear of the unknown. Could the market implode? Could the economy crash? Could a company’s earnings miss expectations?

But there’s one aspect of investing you can hang your hat on: dividends. If you own a solid dividend-paying stock, you can be virtually certain you’ll be paid a regular stream of cash every quarter. For me, at least, seeing those cheques arrive in my brokerage account makes it easier to deal with the market’s inevitable ups and downs.

But some companies are so predictable, in fact, that it’s possible to know not only when the next payment will arrive, but also when the company will raise its dividend. So, with this theme in mind, I’ve put together a list of five companies that will likely hike their payouts over the next year.

1. Canadian National Railway Company

The Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is your ultimate forever stock. Built over a century ago, the firm’s network of track cuts right through densely populated cities from coast to coast. Even if you and I could scrape together a few billion bucks, there’s no way we could secure the right of ways needed to compete against this company. As a result, CN is a cash flow machine, raising its annual payout nearly 19-fold since going public in 1996.

2. TransCanada Corporation

Few companies are as specific about their dividend-growth plans as TransCanada Corporation (TSX:TRP)(NYSE:TRP). In November the pipeline giant said it expects to hike its payout by 8% to 10% annually going forward—in line with growth in earnings per share. With about $46 billion in planned expansion projects, there’s no shortage of growth ahead.

3. McDonald’s Corporation

McDonald’s Corporation (NYSE:MCD) knows how to share the wealth. Last year the golden arches returned US$6.2 billion to investors in combined dividends and share buybacks. And there’s more where that came from. According to analyst estimates compiled by Bloomberg, McDonald’s is expected to hike its dividend by about 5% this fall.

4. Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP), as the name would imply, owns a hodgepodge of infrastructure assets all over the world. With $2.3 billion in cash and credit, the partnership is on the hunt for more acquisitions. Needless to say, that should translate into many more dividend hikes in the coming years.

5. The Coca-Cola Co.

The post Dividend Investors: 5 Stocks Poised to Hike Their Payouts appeared first on The Motley Fool Canada.

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If you received a $5,000 bonus, what would you do with it?

For many, such a windfall would be quickly squandered on shoes, electronics, or dinners out. For others, the extra cash would just be a way to put out some financial fires. These folks would probably need the money for an overdue bill or day-to-day expenses.

But for those of us with a little discipline, $5,000 could put a big dent into a long-term savings goal. That’s doubly important for those of us who haven’t been saving at all. Perhaps the best thing you can do right now is to put that money to work for you through investing.

Now, some would argue that a $5,000 windfall is a fantasy. However, it’s an attainable figure for many. If you can save $100 a week—about the amount many families spend at restaurants—then you can put away $5,000 in less than a year.

Easy? No. But it’s possible. So, for those of you looking to get started, here are five ways to invest $5,000 now.

1. Save with an online bank

Before you can start building a mountain of wealth, you have to protect yourself from falling off a financial cliff. For someone who is just starting out on their investing journey, I would suggest building up that rainy day fund.

Online banks are a great place to build an emergency money stash. While they don’t have convenient physical locations, online banks tend to offer higher interest rates. Without the need to pay tellers or heat physical branches, they can pass the savings on to you.

2. Money market funds

If you’re investing for five years or less, then consider placing your cash in a money market fund. Money market funds generally buy high-quality, short-term debt that can be easily converted into cash. These are some of the safest, most liquid investments out there.

Guaranteed Investment Certificates, or GICs, are another safe investment that offer higher yields. The downside is that once you’re locked into a GIC, you won’t be able to access your money until the specified maturity date.

3. Index funds

The post Attention Savers: 5 Ways to Invest $5,000 appeared first on The Motley Fool Canada.

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The oil patch isn’t known for big yields, but that’s starting to change.

The recent plunge in crude has knocked down share prices on many blue-chip names. Investors can now find juicy yields in shares of battered stocks, many of which are still paying out decent distributions.

Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) and Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) are two of the most obvious examples. Both sport top yields. Both pay reliable dividends. And if you believe in buying wonderful businesses when Mr. Market throws a sale, low energy prices have allowed investors to buy both of these stocks on the cheap.

But for those of us with limited funds to invest, it’s not easy to choose between these two firms. So today, we’re tackling a pressing question: Which energy giant is a better bet for income? Let’s see how these two stocks stack up on a range of measures.

1. Dividend yield: This metric is straightforward to measure. Cenovus yields a tidy 5.3%, which is one of the highest payouts in the oil patch. However, Crescent Point is paying out even more to shareholders, with a current yield of 9.8%. So, if you need income up front, Crescent Point is your best bet. Winner: Crescent Point

2. Dividend history: Of course, we have to dig a little deeper than that. Dividend investing isn’t as easy as picking out the stocks with the highest yield. Reliability is also important. After all, we don’t want to see our income suddenly dry up without warning. That said, both Cenovus and Crescent Point have long track records of rewarding shareholders, paying out dividends to investors every year since 2009. Winner: Draw

3. DRIP discount: Dividend reinvestment plans, or DRIPs, are an income investor’s best friend. These programs allow shareholders to automatically reinvest cash dividends without paying a broker commission. Even better, DRIPs often allow enrollees to purchase their shares at a discount to the market price. In the case of Cenovus and Crescent Point, these companies allow enrolled shareholders to buy their shares at a 3% and 5% discount, respectively. Winner: Crescent Point

4. Dividend growth: To offset rising prices, dividend growth is just as important as the current payout itself. Unfortunately, Crescent Point has failed to hike its dividend once since the program started six years ago. Cenovus, in contrast, has managed to increase its distribution at a modest 6% compounded annual clip since 2009—more than enough to keep up with inflation. Winner: Cenovus

5. Earnings growth: Of course, future payout increases depend on growing earnings. Unfortunately, low energy prices will mean muted profit growth from the oil patch going forward. Based on analyst estimates compiled by Reuters, Cenovus and Crescent Point are expected to see their earnings fall by 18% and 32%, respectively, over the next five years. Needless to say, that means future dividend hikes are off the table for the foreseeable future. Winner: Cenovus

6. Valuation: But while distribution increases may be on hold, there has never been a better time to add energy stocks to your portfolio. Today Crescent Point and Cenovus trade at 9.3 times and 12.1 times forward cash flow, respectively—well below their historical average. Winner: Crescent Point

And the results are in…

As I said, Cenovus and Crescent Point are both excellent energy companies. You really couldn’t go wrong by adding either one of these to your portfolio. That said, Crescent Point’s bigger yield, cheaper valuation, and excellent DRIP program gives it the slight edge in my books.

The post Which Stock Is a Better Buy for Dividend Investors: Cenovus Energy Inc. or Crescent Point Energy Corp.? appeared first on The Motley Fool Canada.

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They laughed when he started investing on his own, but their grins turned to amazement when he unveiled his fortune.

Ronald Read was known around town as a friendly man who often sported a flannel jacket and baseball cap. The Dummerston, Vermont native, a former janitor and gas station attendant, gave no clue as to the size of his wealth.

His hidden talent for picking stocks was only revealed after he passed away. When Read died last June, friends and family were stunned when his estate left $6 million to the Vermont Brooks Memorial Library and the Brattleboro Memorial Hospital.

Stories like Ronald Read are actually not unheard of. But how do people of such modest means accumulate so much wealth? Read’s story reveals a few clues. Let’s review how he amassed such an extraordinary fortune and what lessons we can learn from his example.

1. He lived frugally: Read never looked like a millionaire. He was frugal his whole life, saving money, avoiding waste, and eschewing most luxuries. He was so frugal, in fact, Read sometimes held his coat together with safety pins. His estate included a 2007 Toyota Yaris valued at $5,000.

2. He kept learning: Read subscribed to The Wall Street Journal and kept close tabs on business and other financial news. He thoroughly researched every stock he owned, with a keen focus on strong franchises that were poised to grow profits over time.

3. He bought wonderful businesses: With his savings, Read bought shares of companies that paid out regular dividends. His portfolio included dozens of blue-chip stocks like CVS, JPMorgan Chase, J.M. Smucker, Johnson & Johnson, and Procter & Gamble. Those dividend cheques were then reinvested back into more shares of the same companies.

Owning dividend-paying businesses is a proven wealth-building formula. As you can see in the chart below, boring, high-yield stocks like BCE Inc. (TSX:BCE)(NYSE:BCE), the Royal Bank of Canada (TSX:RY)(NYSE:RY), and the Canadian National Railway Company (TSX:CNR)(NYSE:CNI) regularly beat the broader market over the long haul.

Source: Yahoo! Finance

4. He was a buy-and-hold investor: When Read passed away, he had a five-inch-thick stack of stock certificates in a safe-deposit box. Keeping his holdings in certificate form meant that selling his shares was a laborious, expensive process. Compare that with launching an app on your phone. Trading nowadays is too easy for our own good.

5. He avoided taxes:  Buy-and-hold investing has another advantage over more active strategies—tax deferral. Each time you sell a stock for a profit, you have to pay capital gain taxes. This can take a big bite out of your returns. But by holding on to his shares indefinitely, Read was able to shelter his profits from the IRS, thereby allowing his wealth to compound even faster.

6. He diversified: Read diversified his portfolio across lots of companies in many sectors. This diversification allowed him to spread the risk broadly. Even bad investments like Lehman Brothers had only a small impact on his returns.

7. He took a long time: Read had remarkable patience. He held on to many of his stocks for years and even decades. Read took advantage of the power of compounding, allowing his gains to grow on top of earlier gains. Most investors, in contrast, start saving too late in life and don’t allow time to work in their favour.

The post How Ronald Read Made $8 Million in the Stock Market appeared first on The Motley Fool Canada.

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But if you prefer good old-fashioned businesses and are willing to trade being the talk of your next cocktail party for common sense investing, then you’ll like this strategy just fine.

Investing doesn’t have to be complicated. Buy a few good businesses, reinvest the dividends, and hold on for the long haul. Today thousands of ordinary investors are using this method to grow their wealth.

So, to help get you started, I have listed five stocks that you could literally hold for the rest of your life. Of course, there are no guarantees when it comes to investing.  However, these wonderful businesses are built to last and pay a nice dividend to boot.

Source: Yahoo! Finance

Let’s say a few words about these companies.

Canadian banks are the perfect example of wonderful businesses. Despite grumbling about fees, most customers are happy with their banks…or at least satisfied enough to stay with them. As financial firms begin offering more services, customers are increasingly tied to one lender.

As a result, companies like the Bank of Montreal (TSX:BMO)(NYSE:BMO) and the Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) can easily pass on higher prices. Needless to say, most of those profits are funneled right back to shareholders.

In the same way moats protected medieval castles from attackers, an economic moat protects a business from competition. The Canadian National Railway Company (TSX:CNR)(NYSE:CNI) has a moat more than a mile wide filled with angry mutant sharks.

The company’s network of track would costs tens of billions of dollars to replicate. Furthermore, no other method of transportation can compete with rail over long distances. This competitive advantage has allowed CN to generate oversized profits year after year.

BCE Inc. (TSX:BCE)(NYSE:BCE), too, has a wide moat. Thanks to its sheer size, the company has an enormous scale advantage and network superiority. Given that BCE has paid an uninterrupted dividend for 133 years, shareholders can likely count on those steady distributions (and overpriced cell phone bills) for decades to come.

Finally, Brookfield Infrastructure Partners L.P. (TSE:BIP.UN)(NYSE:BIP) is one of the market’s best-kept secrets. The partnership owns ports in Europe, railways in Australia, toll roads in South America, and utilities throughout Canada and the United States. These are irreplaceable assets, which means they can extract tall profits from the marketplace.

The post Dividend Investors: 5 Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

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Can a stock offer safety and a big yield? If you’re talking about the Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), then the answer seems to be yes.

Confusion and conflicting advice reign in the financial world. According to many analysts, though, higher yields generally translate into higher risk.

Bank of Nova Scotia appears to be the exception. Today the banking giant yields a tidy 4.2%. Yet in spite of the stock’s tall payout, the company is one of the most reliable dividend payers in the country. Bank of Nova Scotia has paid a distribution to shareholders every year since 1832, the second-longest streak of consecutive dividends in North America.

Of course, these are backward-looking numbers, but there’s reason to believe that Bank of Nova Scotia will continue to generate outsized returns. What the stock does in the short term is anybody’s guess. But over the long haul, I expect investors will be handsomely rewarded.

Here’s why:

1. It’s rock solid

I hate dealing with banks, but that’s exactly why I love their stocks: account fees, statement fees, inactivity fees. Each year it seems like more of my cash ends up in bank coffers.

Of course, I’m not the only one who’s frustrated. You can bet there are thousands of other saps just like me stuck feeding more money into the bankers’ pockets. But despite grumbling about fees, most customers are at least satisfied enough to stay with them.

According to Bank of Nova Scotia’s own numbers, about 15% of Canadians were prepared to switch banks five years ago. New data, however, shows that figure is now in the mid-single digits, and expected to plunge further.

The ability to retain a loyal customer base is a hallmark of a wonderful business. Firms like Bank of Nova Scotia that can keep those consumers buying year after year generate strong free cash flows and superior profit margins, putting them in a better position to return money to shareholders through dividends and buybacks.

2. It’s a dividend machine

Speaking of dividends…

It’s easy to find stocks that will pay a handsome yield for a few quarters. But what about stocks you can count on to provide income for decades and even centuries to come?

If history is any guide, Bank of Nova Scotia is the one stock that you could pass on to your grand kids. As I mentioned above, the company has been mailing out cheques to shareholders since before Canadian Confederation. And after reporting another round of record profits last quarter, management is planning to launch a big share buyback program in coming weeks.

Don’t expect this tradition to end anytime soon. Given Bank of Nova Scotia’s AA credit rating and more than $6.9 billion in annual profits, this payout is one of the safest around.

3. It’s attractively valued

The recent drop in oil prices has clobbered stocks and even the banking industry is feeling the pain. Since last summer, Bank of Nova Scotia’s shares have plunged nearly 15%.

So, is it time to panic? Hardly. If you believe in buying wonderful businesses when Mr. Market throws a sale, then now’s a great time to scoop up shares on the cheap.

To value a bank, analysts often use a metric called price-to-book value. This measures what investors are willing to pay for a company’s assets less all senior claims such as debt and other liabilities. Today Bank of Nova Scotia’s shares trade at about 1.6 times book value, which is below its peers and historical average.

Of course, this stock is no slam dunk. The banking industry in Canada is a mature business and households are up to their eyeballs in debt. That means the company’s days of double-digit profit growth are over, at least for the time being.

The post Dividend Investors: 3 Reasons to Buy and Hold the Bank of Nova Scotia appeared first on The Motley Fool Canada.

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Oil stocks aren’t known for their generous dividends, but that might be about to change.

Outside of a few major or master limited partnerships, few energy names sport impressive yields. Drilling for oil is an expensive business, which is why energy companies are forced to plow most of their earnings back into operations.

That was true, at least, before the current downturn. The recent plunge in crude prices has knocked down the valuations on many high-quality stocks. Investors can now find juicy yields in shares of battered firms, many of which are paying out decent distributions.

Of course, there are no sure things, but bigger yields compensate investors for the extra risk. So, with this theme in mind, here are three top dividend stocks from the energy patch.

1. Suncor Energy Inc.

Suncor Energy Inc. (TSX:SU)(NYSE:SU) is hardly a hidden gem. But as the largest energy producer in the country, this company has the size and scale needed to survive the industry’s current doldrums. This is exactly the type of stock you want to own during a prolonged period of low oil prices.

Suncor stands out from its rivals in other ways, too. Over the past few years, Chief Executive Steve Williams has returned billions of dollars to investors through dividend hikes and share buybacks. It’s this sort of commitment to shareholders that has likely attracted the attention of famed value investor Warren Buffett.

2. TransCanada Corporation

While most players in the oil patch are struggling, midstream businesses like TransCanada Corporation (TSX:TRP)(NYSE:TRP) are doing just fine. Midstream is oil lingo for all of the operations involved in moving energy products from the wellhead to the refinery. However, most investors don’t understand that this tends to be the most lucrative part of the industry.

You could think of midstream firms like TransCanada as a toll road. This company charges a fee on every barrel of oil and gas that is shipped through its network, which is then funneled back to shareholders. So, no matter which direction energy prices go, TransCanada still gets paid.

3. Crescent Point Energy Corp.

Finally, Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is the most speculative name on this list. Of course, whenever you see a yield up above 9%, alarm bells should be going off. But while it’s prudent to be concerned, I don’t expect this company will cut its payout anytime soon.

Before oil started plunging, Crescent Point locked in the price for most of its future production. And while other energy producers loaded up on debt during the boom years, this company kept its balance sheet in tip-top shape. In fact, Crescent Point is now using the current doldrums to scoop up rivals on the cheap.

The post Dividend Investors: 3 Top Oil Stocks Yielding Up to 9.7% appeared first on The Motley Fool Canada.

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What would you do with an extra $5,000?

For many, such a windfall would be quickly blown on shoes, electronics, or a vacation. But for those of us with a little discipline, $5,000 could put a big dent into a long-term savings goal. That’s doubly important for those of us who haven’t been saving at all.

Real estate investment trusts, or REITs, are one of my favourite places to stash extra money. Because they’re required by law to pay out all of their earnings to unitholders, these firms often sport big yields. Furthermore, properties like apartment buildings, office complexes, and shopping malls tend to be reliable investments. So, with this theme in mind, here are three REITs I’d buy with $5,000.

1. Boardwalk REIT

Boardwalk REIT (TSX:CAR.UN) is one of the most dependable income streams around. More than two-thirds of the trust’s portfolio consists of mid-tier apartment buildings. It’s nothing fancy, but these assets will crank out cash even if the economy is struggling.

You could think of Boardwalk as the Wal-Mart of real estate. People always need a place to live. And because the business is focused on affordable housing, this firm earns a steady income in any market.

2. RioCan Real Estate Investment Trust 

RioCan Real Estate Investment Trust (TSX:REI.UN) owns one of the largest realty empires in the country, with over 79 million square feet of real estate throughout Canada and the United States. However, this firm isn’t your traditional landlord. Instead, RioCan specializes in commercial real estate like malls and shopping centres—an area of the market typically off-limits to retail investors.

This is how the firm has been able to pay out such consistent, oversized rent cheques. Since its first distribution in 1994, RioCan has never missed a monthly payment to unit holders. Today the trust yields a tidy 5%.

3. Dream Global REIT

Dream Global REIT (TSX:DRG.UN) allows you to invest internationally without renewing your passport. The trust owns Grade A office space throughout Germany, encompassing some 16 million square feet of real estate. These properties are rented out to a number of top companies that I’m sure you’ve heard of, such as Google and BNP Paribas.

Needless to say, these corporate tenants have a lot more rent money than the typical people answering ads in the newspaper. Today Dream pays a monthly distribution of 6.67 cents per unit, which comes out to an annualized yield of 8.2%. But as the fund rolls over tenants into higher-paying leases, I’d expect that distribution will grow significantly in the years ahead.

The post 3 REITs I’d Buy With an Extra $5,000 appeared first on The Motley Fool Canada.

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