Invest in real estate is one of the best ways to put your money to work and naturally one of the most popular strategies that investors consider. And with so many major Canadian Real Estate Investment Trusts (REITs) to buy, you can start investing and building a passive income stream with as little as a few hundred dollars.
The key to buying REITs for passive income, in addition to buying companies with strong, high-quality portfolios, is knowing what you want.
You can find REITs that offer high returns or REITs that pay monthly, or you can buy some of the best dividend growth stocks.
If you’re looking to buy a top Canadian REIT to add to your portfolio today, here are three of the best investments for passive income seekers.
A top retail REIT for passive income seekers
One of the top REITs to buy in Canada if you are a dividend investor is CT REIT (TSX: CRT.UN). CT is the REIT that is partially owned by Canadian tire, and the company is also its largest tenant.
In fact, Canadian Tire contributes more than 90% of CT REIT’s revenue, which is why it is an excellent investment for those seeking passive income.
Canadian Tire is one of the largest and best known retail companies in Canada. So you know that with CT REIT, as long as the parent company is doing well, you can expect predictable cash flows and a resilient portfolio.
It is part of the reason that it has hardly been affected by the pandemic, one of the few retail REITs in such a strong position.
In addition, it offers an attractive dividend yield of 4.7%. And that dividend increases every year, which is why CT REIT is one of the best dividend aristocrats in Canada.
If you are looking to create a passive income stream with some of the top Canadian REITs, the CT REIT is undoubtedly one of the best to consider.
A top residential REIT to buy for dividend growth
Canadian REIT Apartment Properties (TSX: CAR.UN) is another excellent investment for passive income investors that support steady dividend growth.
CAPREIT is a massive fund and easily one of the best and safest REITs to buy in Canada. It has more than 65,000 manufactured home and apartment suite community sites in Canada and Europe.
A quick look at CAPREIT’s finances shows how effective the action has been in growing its portfolio. In fact, in the last 18 months alone, it has increased its sites and suites by almost 10%.
Not only that, but because it is a residential REIT, it is one of the safest investments you can make. This makes it ideal for investors looking to create a passive income stream. Furthermore, its portfolio is well diversified and its occupancy rate is above 97%.
So if you are looking for a stock that can continue to increase your earnings and consequently your long-term dividend, Canadian Apartment Properties REIT is one of the top investments to buy today.
A superior high-performance REIT
Lastly, if you are an investor looking for a high-yielding REIT to help you grow your passive income stream, you may want to consider True North Commercial REIT (TSX: TNT.UN).
True North Commercial REIT is one of the leading REITs to buy dividend investors, because it offers an incredible performance of more than 8%.
While high-yield stocks generally trade that way for a reason, True North deserves more credit than it currently receives in my opinion.
First, the stocks are well diversified and have 45 properties in five different provinces. Second, it currently has an occupancy rate of 97%. Third, more than 75% of your tenants have strong credit ratings or are government agencies.
Even looking at its finances, True North was hardly affected by the pandemic, if at all.
With the REIT paying about 50% of its funds from operations, it is clear that True North is not only a great investment for passive income seekers today, but also because it is considerably cheap.
So if you are looking for a top REIT to buy today, True North offers an excellent opportunity.
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Silly collaborator Daniel Da Costa has no position in any of the actions mentioned. The Motley Fool has no position in any of the listed stocks.