Dividend shares are nice, and actual property funding trusts (REITs) are a few of the finest on the market. However there’s a catch. These are solely nice buys if the businesses themselves are important. Actual property, as we’ve seen, could be fickle. Traders can’t simply hope that buildings will all the time be full, except they’re in the proper business.
Two industries that present this important funding are industrial properties and client staples. Right this moment, we’re going to take a look at two that supply an effective way to create some robust passive earnings, whereas additionally offering secure and secure returns.
DIR
Dream Industrial REIT (TSX:DIR.UN) is our first possibility, specializing in industrial properties throughout Canada. The dividend inventory is primed for the choosing, demonstrating robust earnings, a higher-than-average dividend yield, and extra progress sooner or later.
Throughout its second quarter of 2025, the dividend inventory reported robust outcomes with a 4% enhance in funds from operations (FFO). Moreover, it noticed progress in its comparative properties’ internet working earnings (NOI). Even whereas dealing with a 24.4% decline in internet earnings from valuation losses, the inventory remains to be managing debt maturities by making strategic investments to reinforce its progress. This give attention to money movement and capital allocation will present additional stability for traders.
In reality, it might even imply extra appreciation in dividends for income-focused traders, particularly because the dividend inventory continues to amass extra properties. These embrace ones that can improve its portfolio, seen within the second quarter with $80 million made in strategic acquisitions, particularly in Ontario and Quebec. So, for progress in a secure business that retains on giving, Dream may very well be a best choice.
SGR
Slate Grocery REIT (TSX:SGR.UN) is one other robust possibility, given its funding in United States-anchored grocery chains. This sector is a sexy funding for these looking for regular returns whereas additionally having fun with capital appreciation from its undervalued belongings.
Identical to with Dream, Slate had a stable quarter. The corporate maintained stable same-property NOI progress of three.6%, pushed by leasing methods in addition to beneficial hire spreads. Moreover, regardless of seeing declines in internet earnings and FFO, the REIT managed to current secure debt administration. Even its outlook reveals minimal maturities by means of 2026, so earnings potential ought to stay constant.
General, Slate is a powerful and beneficial possibility for these looking for a secure earnings in addition to progress. That’s simply what comes from investing in an organization that’s investing in a single factor all of us want: groceries.
Backside line
So, not solely are traders more likely to proceed seeing their share costs rise, however they’ll completely see month-to-month dividend earnings flooding in. That’s proper: month-to-month. Proper now, for those who have been to place $5,000 in the direction of every dividend inventory, you’d be round $58.57 per thirty days, or $702.80 per yr!
COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (per share, annual) | TOTAL PAYOUT (annual) | FREQUENCY | TOTAL INVESTMENT |
---|---|---|---|---|---|---|
DIR.UN | $12.22 | 409 | $0.70 | $286.30 | Month-to-month | $4,997.98 |
SGR.UN | $14.25 | 350 | $1.19 | $416.50 | Month-to-month | $4,987.50 |
Whether or not you’re Dream Industrial for its strategic progress and growing shareholder worth, or the secure earnings from grocery actual property, traders can’t lose. That’s what makes these two Canadian REITs the best choice for those who’re seeking to double your passive earnings.