8% dividend yield? I buy these great stocks in bulk

A dividend stock can be a great buy in any portfolio. After all, it simply pays you for owning it, turning your investment into a stable income stream that manifests whether the market is calm or chaotic. These payouts can help cover bills, finance vacations, or reinvest to buy even more shares. This creates a snowball effect that builds wealth over time without any additional effort. And as the company increases its dividend over the years, that same investment suddenly pays you more for doing nothing at all. So let’s take a look at one to think about TSX Today.

SGR.UN

Slate Grocery REIT (TSX:SGR.UN) is a US-focused real estate investment trust (REIT) that owns grocery-anchored shopping centers in stable, need-based markets. What sets SGR apart is its laser focus on essential retailers such as Publix, Crochet, Walmartand other supermarket chains that thrive in any economic climate.

These assets generate predictable traffic, stable rental payments and long-term leases that provide insight into the future. It’s a niche REIT that most Canadian investors overlook, but its fundamentals are much stronger than its modest profile suggests.

Another unique advantage is Slate’s active acquisition and repositioning strategy. Management regularly purchases undermanaged supermarket properties at attractive valuations, improves them and increases occupancy and rental prices. US supermarket real estate remains fragmented and undervalued compared to Canadian peers. Therefore, SGR benefits from high cap rates that are not available in domestic markets. The trust’s portfolio also spans multiple states, reducing geographic risk and ensuring diversified exposure to different local economies.

In income

Slate showed strong stability in rental income and occupancy, confirming the resilience of its grocery-anchored assets even as the broader retail sector faces volatility. Net operating income for the same properties continued to improve. This was supported by rent escalations in long-term leases and new tenants replacing older, lower paying tenants.

Management highlighted that tenant credit quality remains exceptionally high, with most being national supermarket chains or essential services retailers. This strengthens the reliability of rental income, which in turn supports higher distribution payouts.

SGR also continued to strengthen its balance sheet through refinancing activities and selective sales of non-core assets. These actions helped maintain liquidity and extend debt maturities at manageable rates. The trust reported stable financial resources from operations and confirmed its commitment to maintaining monthly distributions. In an environment of higher interest rates, that is a meaningful signal of financial discipline.

Silly takeaway

All in all, SGR offers a rare combination of stability of essential services and an exceptionally high monthly return of 8% at the time of writing. People need groceries no matter what the economy is doing, and that constant foot traffic supports consistently strong tenant performance. This translates into reliable cash flow for the REIT and ample support for monthly payouts. Here’s what $7,000 could pay for right away.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
SGR.UN	$14.92	469	$1.21	$567.49	Monthly	$6,999.48

But despite all this, it remains quite valuable. The market continues to broadly discount U.S. retail real estate, even as supermarket-anchored centers have repeatedly proven their resilience. This decoupling allows SGR to trade at attractive prices while delivering returns that are significantly higher than most Canadian REITs. With strategic acquisitions, stable cap rates, long-term leases and a management team skilled at extracting value, the trust offers one of the most attractive high-yield opportunities on the TSX. It’s perfect for investors looking for strong passive income without taking on reckless risk.