As investors approach retirement, their priorities naturally begin to shift. The goal is less about chasing high growth and more about generating stable, predictable income while protecting the capital you’ve already built. That’s why the best retirement stocks are those that can deliver both reliable dividend income today and stable growth to keep up with inflation over time.
That’s why high-quality dividend stocks are ideal for investors nearing retirement. The best dividend stocks offer consistent cash flow that can help cover living costs, while still providing exposure to long-term compounding.
The key is finding stocks that strike the right balance between the two yieldstability and durability. A company that pays a high dividend is not necessarily a good investment if the payout ratio is high and unsustainable. On the other hand, a stock that is ultra-safe but pays only a small dividend won’t do much for your portfolio either.
So if you’re looking for high-quality dividend stocks to buy as you approach retirement, here’s why CT REIT (TSX:CRT.UN) is one of the very best.
A stable company with a reliable tenant
There’s no doubt that many of the best retirement stocks can be found in the real estate sector. These businesses consistently generate millions in cash flow every month, making them some of the best passive income generators you can buy.
And while most investors tend to look to residential REITs first because of their defensive nature, a stock like CT REIT offers investors a lot of upside. That’s why it’s one of the best dividend stocks to buy for your retirement portfolio.
Although CT REIT is a retail REIT, what makes it unique is its close relationship with Canadian bandone of the most recognized brands and retailers in the country.
In fact, Canadian Tire is not only the majority owner of CT REIT’s stock, it is also its largest tenant, accounting for approximately 90% of the REIT’s rental income.
Therefore, not only does CT REIT generate nearly all of its cash from one of the most reliable retail tenants in the country, but because it is also owned by Canadian Tire, much of their long-term growth potential is aligned.
Additionally, CT REIT has ample organic growth potential, and most of its leases include built-in rent escalations that help offset inflation and support steady revenue growth.
So it’s no surprise that CT REIT has increased its earnings, funds from operations (FFO) and dividend every year since going public just over a decade ago, showing why it’s one of the best dividend stocks for Canadian investors to buy for retirement.
Why is CT REIT one of the best dividend stocks to buy for retirement?
Because of its relationship with Canadian Tire and the significant cash flow that CT REIT generates, it is easily one of the best dividend stocks Canadian investors can buy for retirement.
While many dividend investors focus on stocks with the highest yields, it’s the quality and sustainability of the dividend that matter most. And while investors often have to choose between an attractive dividend yield or solid dividend growth, CT REIT offers both.
Not only does the stock currently offer a yield of over 5.6%, but it has also increased its dividend every year since going public. In the past five years alone, including due to the pandemic when many retail REITs were struggling, CT REIT’s annual dividend has increased by more than 13%.
Furthermore, looking ahead, the stock continues to have attractive growth potential as new developments come online.
In fact, analysts estimate that CT REIT’s revenue will grow nearly 5% in both 2025 and 2026. Furthermore, analysts estimate that both the dividend and FFO will increase by about 3% over the next two years.
So if you’re looking for a reliable Canadian stock with strong long-term growth potential and a solid dividend that you’ll pay to hold, there’s no doubt that CT REIT is one of the best options out there for investors.
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