Monthly payouts match the rhythm of real life with bills, groceries and kids’ activities, while the TFSA protects every dollar from taxes so the full amount can be reinvested to build even faster. It feels like you get a small bonus twelve times a year, and over time those reliable deposits can grow into a powerful income engine that isn’t dependent on market timing or luck. And this one? It provides stability And a high yield.
GSC
Slate Grocery REIT (TSX:SGR.UN) is an American real estate investment trust (REIT) built around tenants that people rely on no matter what’s happening in the economy. With properties leased to major supermarket chains, discount stores, pharmacies and essential retailers, the portfolio generates resilient rental income even during recessions.
The REIT focuses on neighborhood shopping centers, places where pedestrian traffic remains stable. That’s because groceries and household supplies are not discretionary. This defensive tenant base gives SGR.UN predictable cash flow, high occupancy and stability, setting it apart from more volatile retail REITs. The REIT also benefits from being focused on the US, giving Canadian investors geographic diversification while still trading on the TSX.
In income
Recent earnings figures have demonstrated the power of this model, with the REIT reporting consistently high occupancy rates and stable net operating income for the same property. Rental collections remained at pre-pandemic levels, demonstrating how resilient supermarket real estate can be. Slate also increased its adjusted funds from operations, driven by favorable lease spreads and newly acquired properties that meaningfully contributed to revenue.
As interest costs rose, Slate maintained a disciplined balance sheet strategy. This included staggered debt maturities and access to sufficient liquidity to buffer interest rate pressures. Management reaffirmed the monthly distribution and showed confidence in the REIT’s underlying cash flow. In the latest quarter, the REIT also highlighted progress in strengthening the quality of its portfolio by selectively selling non-core assets and recycling capital to stronger markets.
This helped improve cash flow sustainability while reducing refinancing risk in future years. Even in a challenging macro environment, the REIT’s (AFFO) adjusted payout ratio remained within a sustainable range. This gives investors additional assurance that the dividend is backed by actual income and not debt. The combination of stable tenants, disciplined capital management and consistent rental growth gave Slate Grocery a solid financial foundation heading into the next year.
A long-term victory
What also makes Slate Grocery REIT interesting is its long-term potential for steady cash flow generation and rental growth. Supermarkets tend to sign long leases and anchor entire plazas, encouraging other creditworthy tenants to cluster around them. This dynamic supports strong rent collection and provides room for the REIT to negotiate favorable lease extensions.
SGR.UN has also strategically acquired properties at attractive cap interest rates, expanding in markets where population growth remains strong and competition is limited. Over time, this measured acquisition strategy helps grow the portfolio, cash flow and ability to maintain distribution.
All in all, SGR.UN is an ideal TFSA stock. It delivers exactly what long-term Canadian investors want: a reliable monthly income with a high return. All supported by tenants who thrive in all economic environments. Grocery stores don’t close during recessions, so the REIT’s cash flow remains reliable even as other sectors falter.
In short
Within a TFSA, the high monthly return becomes even more powerful. None of it is taxed. Each payout goes straight into your pocket or converts into more units, further growing your income. And right now, this is what you can get even for $7,000.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SGR.UN | $14.87 | 470 | $1.21 | $568.70 | Monthly | $6,988.90 |
The REIT’s US focus provides diversification, and the strategic acquisitions give the REIT a clear long-term growth path. For Canadians looking to build a tax-free income engine they can count on every month, SGR.UN checks every box.
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