Should you invest $1,000 in TD Bank right now?

Before you buy stock in TD Bank, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and TD Bank wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,750.10!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*.

See the Top Stocks * Returns as of 1/22/25

Property Investors: Re-Enter the Market Through 3 REITs for Durable Cash Flows

Despite the unstable conditions today, property investors can re-enter the real estate market through REITs to receive recurring, durable cash flows.

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Property investors have disengaged from the real estate market in recent months due to unstable market conditions. Homebuyers are likewise on the sidelines because of rising borrowing costs. Furthermore, housing activity declined for the sixth consecutive month in August 2022. Investors and buyers alike are waiting for prices to stabilize and want more clarity on interest rates.

Nonetheless, despite potentially two more rate hikes before year-end, investors can re-enter the real estate market without direct ownership. Selected Canadian real estate investment trusts (REITs) offer great value, stability, and attractive dividends.

Residential

Minto Apartment (TSX:MI.UN) reported increasing occupancy this year and maintains a very strong business outlook. The $514 million REIT owns, develops, and operates income-producing multi-residential properties in Canada’s urban markets.

Net operating income (NOI) in the first half of 2022 increased 10.1% to $40.62 million versus the same period in 2021. Net income reached $218.7 million compared to a net loss of $11.7 million a year ago. Also, portfolio occupancy rose to 94.51% from 91.18% in the comparable periods.

Michael Waters, Minto’s chief executive officer (CEO), said, “Rising interest rates have increased the cost of home ownership and further widened the affordability gap between owning and renting a home, making renting an increasingly attractive option.” This REIT currently trades at $12.83 per share and pays a 3.61% dividend.

Retail

Slate Grocery (TSX:SGR.U) is appealing because of the defensive and resilient nature of the business. The $573.98 million REIT owns and operates grocery-anchored real estate (108 properties) in major U.S. metro markets. Anchor tenants include Costco, Kroger, Target, and Walmart.

In the second quarter (Q2) 2022, rental revenue and NOI increased 18.2% and 37% year over year to $33.37 million and 32.9 million, respectively. Net income for the quarter was $59.38 million versus the $3.14 net loss in Q2 2021. The recent acquisition of a grocery-anchored real estate portfolio in the rapidly growing Sunbelt Region of the U.S. is welcome news to investors.

Slate Grocery also formed a joint venture with Slate North American Essential Real Estate Income Fund. Its CEO Blair Welch said the exciting milestones significantly increased the REIT’s exposure to high-quality grocery-anchored real estate in some of the fastest-growing markets. At only $9.68 per share, the dividend yield is a super-high 8.73%.

Industrial

Nexus Industrial (TSX:NXR.UN) owns a real estate portfolio comprising of  quality industrial, office, and retail properties. Apart from its growing presence in Canada, the $680.7 million REIT aims to expand in the United States. If you invest today, Nexus trades at $8.59 per share with a juicy dividend yield of 7.24%.

The REIT’s performance in the first half of 2022 was strong. In the six months ended June 30, 2022, NOI and net income rose 101.8% and 60.6% year over year to $45.98 million and $97.7 million, respectively. Since management wants to focus on the industrial sector, it has a disposition program for retail and office properties.

Kelly Hanczyk, Nexus’s CEO, said, “We have a number of acquisition opportunities that are being evaluated and will acquire opportunistically in the current economic environment.”

Durable cash flows

Minto Apartment, Slate Grocery, and Nexus Industrial will deliver durable cash flows to investors. Capital gains are also possible over the long term or when the real estate market rebounds.    

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Target and Walmart Inc. The Motley Fool has a disclosure policy.

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