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Ever since the first Canadian real estate investment trust (REIT) was listed on the
TSX in 1993, the pool of real estate assets became popular investment choices. The most attractive feature of a REIT is the dividend offer. If you aspire to be a landlord but have limited funds to purchase physical properties, a REIT is a next-best alternative to earn passive income.
Choosing the right REIT to earn a lifetime of passive income is not easy, especially in the current situation. The global pandemic dealt severe blows to many REITs. However, three names were resilient and endured the carnage. Yield-hungry investors won’t think twice about taking positions.
NorthWest Healthcare Properties REIT (TSX:NWH.UN).
These Canadian companies offer high yields and generate resilient cash flows, implying that their yields and future payouts are safe.
Enbridge
Enbridge stock is yielding about 7.6% at the current price levels, which is very safe. Its more than 40 diversified cash flow streams, cost and productivity improvements, and incremental EBITDA from the secured projects are likely to drive its earnings and cash flows and support its higher dividend payments.
It has raised its dividends for 26 years in a row and could continue to hike it further in the future, thanks to the strength in its core business and recovery in mainline volumes. Enbridge projects its DCF (distributable cash flow) per share to increase by 5-7% over the next three years, implying that its dividends could rise at a similar pace.
The Globe and Mail Globe Investor
Three REITs for your radar, BMO’s 2021 market forecast and TFSA tips: What you need to know in investing this week Bookmark Please log in to listen to this story. Also available in French and Mandarin. Log In Create Free Account
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Gordon Pape: With signs of recovery emerging for REITs after a rough 2020, these three are worth attention