3 Real Estate Stocks to Buy Right Now for Impressive Dividend Income

These three top real estate stocks are among my top picks for long-term investors seeking stable, reliable income in retirement.

| More on:

REITs, or real estate investment trusts, are popular investment options among dividend investors. And it is easy to see why — these real estate stocks usually boast above-average dividend yields, and several of them have distributed growing income for decades consistently.

Among the various real estate plays on the Toronto Stock Exchange, I believe these three are worth grabbing right now.

Top real estate stocks: Boardwalk REIT

Alberta-based Boardwalk REIT (TSX:BEI.UN) is a company that’s been under pressure in recent years. However, oil prices are rebounding, and many new technology firms are announcing expansion into the Edmonton and Calgary markets. This has changed the outlook for Boardwalk’s NOI.

I think this REIT’s occupancy trajectory is solid and is likely to improve alongside the company’s projections (to 97% this year). For investors looking for REITs with upside, this is an excellent way to gain exposure to this sector.

Of course, this REIT isn’t without risk. However, those bullish on the Western Canadian economy may want to take a peek at this real estate stock.

Dream Industrial REIT

Dream Industrial REIT (TSX:DIR.UN) focuses on “last-mile” urban logistics space. And as consumers shift to a sustained rise in online shopping on a long-term basis, this focus looks well-suited to satisfy the increasing needs of e-commerce distribution.

Accordingly, Dream Industrial is one of the top real estate stocks I’m watching right now. On a constant-currency basis, the REIT’s same-property NOI rose by 7.5% year over year this past quarter. Pricing power continues in historically tight supply-demand circumstances. 

With interest rates of Europe staying anchored well below that of North America, this REIT gains from a relative borrowing advantage. Accordingly, I think this 4.3%-yielding REIT is one to think about right now.

Storage Vault Canada

The investment thesis for Storage Vault Canada (TSX:SVI) is based on two major principles. One, a lucrative cash flow profile that is high-growth and low in maintenance capital. And two, the capability to accretively consolidate the ownership base of the industry.

The company’s Q3 results reflected this high-growth cash flow profile — same-property revenue rose 23% year over year and free cash flow or AFFO grew 46%. 

StorageVault’s leases have a month-to-month nature. This allows it to increase rents in response to the present inflationary environment much quicker than traditional property types having longer-term leases. 

Canada has got around 70% less storage space per capita than the United States. This is a key factor underlying StorageVault’s solid rent growth profile. Also, this free cash flow is utilized for ownership consolidation within the industry. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends DREAM INDUSTRIAL REIT.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »