3 Dividend Stocks to Double Up on Right Now

Some of these dividend stocks will take longer to recover than others, but they’ll certainly pay you to stick around.

Amy Legate-Wolfe ❯

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 12, 2024 9:00 pm EDT

Canadian investors seeking some more stable income in their lives are likely looking for dividend stocks. And luckily, now is a great time to get in on the action of some strong ones. Think companies that have already gone through the rough patch and are starting to come out the other side.

Which is why today we’re going to focus on three dividend stocks to double up on right now. Not only will these provide you with passive income through dividends, but returns as well as the stocks rise higher.

NorthWest Healthcare REIT

First up we have NorthWest Healthcare Properties REIT (TSX:NWH.UN). This company has been on a struggling path as the dividend stock expanded too much, too soon. Only around for the last few years, the company grew quickly to become a global healthcare property owner. But as interest rates and expenses rose, it couldn’t keep up.

In the last year, NorthWest stock has cut back. The REIT has sold non-core assets used to strengthen its bottom line. Meanwhile, it’s focusing on long-term lease agreements that can get it back up to snuff. Furthermore, it has also negotiated refinancing agreements to bring down costs through lower interest rates.

So after shares dropped by more than half in the last few years, shares of NorthWest stock are climbing once more. The company now offers a 7.69% dividend yield, with shares up 25% since February. Yet it’s still far below 52-week highs, making it a dividend stock to consider as it rebounds.

SmartCentres

Another real estate investment trust (REIT) to consider is SmartCentres REIT (TSX:SRU.UN). This dividend stock also went through a period of difficulty, as the shopping centre and mixed-use property developer has seen interest rates and inflation hit the stock hard.

Still, over the last few quarters there have been significant improvements. The second quarter saw its occupancy rate hit 98.2%, with same property net operating income (NOI) at $4.2 million. By the third quarter, this increased to a 98.5% occupancy rate, though same property NOI only increased by $2.6 million.

By the fourth quarter, occupancy rates have remained stable at 98.5%, with NOI rising to $2.3 million. So this hasn’t been a huge increase in NOI over the last year. For now, analysts believe it could rise slightly over the next while, so if you’re a patient investor you can lock up an 8.12% dividend yield as of writing. But you’ll need to wait until the company sees more renewals to bring in further NOI.

Granite REIT

Then there’s some strong stability with Granite REIT (TSX:GRT.UN). While it doesn’t hold the highest of dividend yields out there, it certainly offers strength. The company invests in industrial properties across Canada. These are in high demand, even during this downturn, leading to even more growth opportunities for the company.

The last three quarters have been filled with pretty good news, including a dividend increase and the renewal of a buyback program. NOI rose from $108.6 million in the second quarter, to $109.2 million in the third, and $110 million by the third. So in this case, slow and steady is certainly winning the race.

So with a dividend yield at 4.33% and shares gaining traction as investors realize the company’s strength, it’s certainly another to double up on before a market recovery.