Retirees: Two high-yield dividend stocks for solid passive income from the TFSA

A high-income stock pays a generous dividend. But there is more to it for retirees. Retirees need dividends that provide stable, recurring cash flow, a healthy payout ratio, and a business built on essential services that won’t collapse during a recession. Retirees should look for companies with a long history of maintaining or growing their dividends, manageable debt, and income streams that hold up even when the economy falters. So let’s take a look at two that fit that retirement dream.

SGR.UN

Slate Grocery REIT (TSX:SGR.UN) is one of the most attractive high-yield dividend stocks for retirees who want reliable, tax-free income in a tax-free savings account (TFSA). What makes it stand out is the stability behind its distribution. SGR.UN owns a portfolio of supermarket-anchored real estate in the United States. People buy groceries in every market cycle, and that reliable foot traffic keeps renters paying rent even when interest rates rise or consumer spending tightens.

Another advantage is the long-term lease structure of the Real Estate Investment Trust (REIT). Many SGR.UN tenants sign multi-year contracts with built-in rental escalators, providing the trust with predictable, inflation-protected income. Big chains like CrochetPublix, and WalmartOwn-owned convenience stores anchor Slate’s properties, and these businesses rarely leave grocery stores because displacement disrupts customer habits. This creates a remarkably stable income base for the REIT and allows it to maintain a high payout without stretching its balance sheet.

SGR.UN also benefits from a portfolio that is generally undervalued compared to Canadian retail REITs. Slate can buy properties at attractive prices and secure better returns on new acquisitions. That makes the business model inherently defensive and cash-rich. Even in a high rates environment, the trust continued to increase rents and maintain strong occupancy rates. This proved that the underlying properties are among the most resilient in the retail world.

DAT.A

Chemtrade Logistics (TSX:CHE.UN) is one of those rare high-yield TSX stocks that retirees can own in a TFSA and really have confidence in. Chemtrade supplies essential industrial chemicals used in water treatment, food processing, oil refining and manufacturing. These are sectors that will continue to operate regardless of what the economy does. That reliable, recession-proof demand provides Chemtrade with stable cash flow, supporting its generous monthly distribution.

What makes Chemtrade particularly attractive is how disciplined its management has become in recent years. The dividend stock cleaned up its balance sheet, reduced debt, improved margins and focused on long-term contracts with stable customers. As a result, cash flow has been significantly strengthened, putting the current distribution on a much stronger basis. Chemtrade’s products are also linked to industries with long-term growth potential, such as clean water infrastructure and chemical manufacturing. This helps protect the company from economic shocks.

Another advantage is pricing power. Because many Chemtrade chemicals play a critical role in industrial processes, customers tend to accept price increases more readily than in competitive retail sectors. This allows Chemtrade to pass rising costs through its supply chain and maintain healthy margins, even as inflation or commodity prices change.

In short

SGR.UN and CHE.UN are two top dividend stocks that retirees can count on. At the time of writing, SGR.UN offers a dividend yield of 8.12%, at just 15.3 times earnings. CHE.UN offers a lower dividend yield of 4.5% and also trades at 15 times earnings. Here’s what $7,000 put into both could yield today.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
DAT.A	$14.47	483	$0.69	$333.27	Monthly	$6,990.01
SGR.UN	$14.96	468	$1.21	$566.28	Monthly	$6,999.68

If you are a retiree looking for safety in your passive dividend stocks, SGR.UN and CHE.UN offer it not just now, but in any economic scenario.