stockmarketwalk If you’re looking to invest in real estate but don’t want to deal with the hassle of being a landlord, dividend stocks could be a good option for you. Dividend stocks pay out regular dividends, therefore they can be a good source of income for investors.
Sector overview
The Canada’s housing sector has grown rapidly in the recent years. The house prices exploded in Canada during the COVID-19 pandemic since the record-low interest rates allowed the buyers to afford buying more expensive homes because of the competitive condition of mortgage rates. But, this trend changed direction abruptly in March 2022, when the central bank started to hike the interest rates.
The rising mortgage rates had an immediate impact on the real estate market in Canada, as a result the sales and new listings started to slow. The average home price was $665,849, down 2% compared to last year in June 2022. Similarly, the Canada’s average home price has decreased for the fourth month in a row on monthly basis.
However, the hiking rates and the high inflation rate will expectedly boost the cost of borrowing since the investors expect higher income from real estates because of the growing cost of mortgage.
Real estate is a stable investment, the value typically increases in long-term while it provides steady cashflow. Additionally, it offers a significant long-term return as it allows to predict cash flow toward future property investments.
There are bunch of options available to investors in the stock market. However, for those who prefer a long-term approach to investing, real estate dividend stocks, it has compiled a list of compelling choices using Yahoo Finance Stock Screener.
| Ticker | Company | Market cap | Sector | Industry |
|---|---|---|---|---|
| TSX CSH.UN | Chartwell Retirement Residences | CA$2,6 billion | Real Estate | REIT—Healthcare Facilities |
| TSX CRR.UN | Crombie Real Estate Investment Trust | CA$2,8 billion | Real Estate | REIT—Diversified |
| TSX DIR.UN | Dream Industrial Real Estate Investment Trust | CA$3,4 billion | Real Estate | REIT—Industrial |
| TSX NWH.UN | NorthWest Healthcare Properties Real Estate Investment Trust | CA$3,0 billion | Real Estate | REIT—Diversified |
| TSX SRU.UN | SmartCentres Real Estate Investment Trust | CA$3,7 billion | Real Estate | REIT—Healthcare Facilities |
Source: Yahoo Finance database
TOP 5 Canadian real estate dividend stocks
5. Chartwell Retirement Residences (Ticker TSX CSH.UN) – Canada
Market capitalization: CA$2,6 billion, forward annual dividend yield: 5,49%, P/E N/A
Chartwell Retirement Residences operates as an open-ended real estate trust. In short, it has indirect ownership in properties and operates a range of seniors housing communities, Chartwell is one of the largest operators in the Canadian seniors living sector with its over 200 quality retirement communities. It was founded in 2003, headquartered in Mississauga, Canada.
There are typically 12 dividends per year in every month. 5 Year Average Dividend Yield: 4,66%
4. Crombie Real Estate Investment Trust (Ticker TSX CRR.UN) – Canada
Market capitalization: CA$2,8 billion, forward annual dividend yield: 5,51%, P/E 18,19
Crombie Real Estate Investment Trust operates as an open-ended real estate investment trust. Basically it owns, operates, and develops a portfolio of high-quality grocery- and pharmacy-anchored shopping centers. Additionally, the portfolio includes offices, commercial properties, and retail stores. It was founded in 2006, headquartered in New Glasgow, Canada.
There are typically 12 dividends per year in every month. 5 Year Average Dividend Yield: 6,11%
3. Dream Industrial Real Estate Investment Trust (Ticker TSX DIR.UN) – Canada
Market capitalization: CA$3,4 billion, forward annual dividend yield: 5,69%, P/E 3,09
Dream Industrial Real Estate Investment Trust operates as an open-ended real estate investment trust. In short, it owns and operates a portfolio of 266 industrial properties with approximately 26.6 million square feet of gross leasable area. On the other hand, the company has strong market positions across North America and in European industrial markets. It was founded in 2012, headquartered in Toronto.
There are typically 12 dividends per year in every month. 5 Year Average Dividend Yield: 5,98%
2. NorthWest Healthcare Properties Real Estate Investment Trust (Ticker TSX NWH.UN) – Canada
Market capitalization: CA$3,0 billion, forward annual dividend yield: 6,28%, P/E 7,09
NorthWest Healthcare Properties Real Estate Investment Trust engages in the provision of access to a portfolio of high-quality international healthcare real estate infrastructure to investors. The company has a diversified portfolio of 190 income-producing properties, additionally it includes 15.4 million square feet of gross leasable area located in the geographical segments: Canada, Europe Brazil, Brazil, Europe, and Australasia. Furthermore, the portfolio includes hospitals, clinics, medical office buildings with stable occupancies on long-term basis. The company was founded in 2010, headquartered in Toronto.
There are typically 12 dividends per year in every month. 5 Year Average Dividend Yield: 6,81%
1. SmartCentres Real Estate Investment Trust (Ticker TSX SRU.UN) – Canada
Market capitalization: CA$3,7 billion, forward annual dividend yield: 6,57%, P/E 4,49
SmartCentres Real Estate Investment Trust is a fully integrated commercial and residential REITs. Furthermore, it is one of the largest in Canada with its strategically located properties in communities across the country. The company has roughly $10.4 billion in assets, moreover, it owns 33.8 million square feet of income producing value-oriented retail space with 97.4% occupancy. In addition, SmartCentres is planning and developing complete, connected, mixed-use communities on its existing retail properties. It was founded in 1989, headquartered in Vaughan, Canada.
There are typically 12 dividends per year in every month. 5 Year Average Dividend Yield: 6,38%
