Canadian Retirees: Two High-Yield Dividend Stocks to Buy and Hold Forever

No retiree wants to have to worry about managing their monthly expenses during their golden years. Unfortunately, relying on savings you’ve built up over the years may not be enough to finance a comfortable retirement. Pensions like the Canada Pension Plan (CPP) and Old Age Security (OAS) are only there to cover some of your retirement needs, and not all.

It’s up to you to ensure you have more retirement income to cover the rest. To this end, building a portfolio of income-producing assets in a tax-free savings account (TFSA) can be an excellent strategy. Any income from interest, capital gains, or dividends can grow without incurring taxes. You can withdraw money from the account with the kind of flexibility you can’t get with one retirement account such as the Registered Retirement Savings Plan (RRSP).

Although it will take time, building a sizable portfolio of monthly dividend shares can convert your TFSA into a self-directed pension that cannot be counted as taxable income. Here are two high-yield ones dividend stocks that you can take into account when putting together such a portfolio.

Chemtrade Logistics

Chemtrade Logistics (TSX:CHE.UN) is a $1.72 billion market capitalization fund that provides industrial chemicals and services to clients in North America and globally. It’s a monthly dividend stock that many Canadian investors own and trust. Why? That’s because the company supplies essential industrial chemicals for a wide range of applications, including oil refining, water treatment, food processing and manufacturing.

All these sectors need a reliable supply of essential chemicals. Recession-proof demand means Chemtrade has stable cash flows that can comfortably fund its high-yield dividends. With improvements to its balance sheet, lower debt, improved margins and a focus on long-term contracts, it appears well-positioned to be a dividend stock that investors can count on.

Slate Grocery REIT

Slate Grocery REIT (TSX:SGR.UN) is another monthly dividend paying stock, but from a completely different sector. Slate is a real estate investment trust (REIT) with a market cap of $903.38 billion that allows you to generate monthly returns based on the number of units you own, just like stocks. This is why REITs trade on the TSX. The REIT focuses on acquiring, owning and leasing a portfolio of income-producing properties throughout the United States, with an emphasis on supermarket-based properties.

Slate Grocery’s tenant base includes some big names in properties such as Oak Hill Village, Salerno Village Square, Errol Plaza, Bloomingdale Plaza and many more. Big chains like Walmart, Crochetand Publix are among the tenants of the properties. Thanks to its long-term tenants, SGR generates reliable income from its properties, which translates into virtually guaranteed monthly distributions to investors. It can be an excellent way to take advantage of the real estate market without having to buy investment property yourself.

Silly takeaway

Chemtrade stock and Slate Grocery REIT are two top dividend stocks that retirees can count on to generate high-yielding monthly returns. At the time of writing, Chemtrade Logistics pays investors $0.0575 per month, and Slate Grocery REIT pays $0.072 per month, which equates to annualized dividend yields of 4.64% and 8.12%, respectively.

If you’re a retiree looking for security through tax-free passive income, building a portfolio of dividend stocks in a TFSA can be an excellent strategy. CHE.UN shares and SGR.UN shares can be excellent core holdings in such a portfolio.