Want $252 in super-safe monthly dividends? Invest $41,500 in these two ultra-high return stocks

Do you want to earn a steady salary without having to work for it, and do you want it now? Then you should invest €41,500 in these two ultra-high yield stocks that deliver an annual return of 7% and more. A return of 7% means €700 per year on an investment of €10,000. And if you don’t have that much cash on hand, you can build it up over a period of time. The share prices of these stocks do not fluctuate much. In fact, you can even use the dividend income to buy more shares instead of using your work income and making money out of money.

Invest $41,500 in these two ultra-high yield stocks

The best monthly payers are real estate investment trusts (REITs) because they receive monthly rental income that they distribute to shareholders. They operate under the trust model and trusts are not allowed to retain income from the assets they own. Otherwise you will be charged the higher tax rate.

You’ll see a dividend payout ratio of around 75-85% for REITs, as they use the remaining cash flow to pay down debt and build new properties.

SmartCentres REIT with a return of 7%

SmartCentres REIT (TSX:SRU.UN) is a super safe dividend payer as 25% of its rental income comes from Walmart. The grocer is not only recession-proof, but also acts as an anchor for other retailers to build stores around it. SmartCentres has been paying dividends for more than two decades and survived the 2008 financial crisis and the pandemic without a dividend cut. That’s because management has been cautious about increasing dividends.

SmartCentres used the extra money to intensify the property near their store by building commercial offices, apartments and storage spaces to attract a large crowd. During difficult times, such as the pandemic, the REIT has halted future developments and focused on maintaining current cash flow. When the housing market rebounded, it sold its housing stock and used the money to reduce debt. It is gradually improving its payout ratio, which has reached 99% in the last two years.

Slate Grocery REIT with a return of 7.6%

Slate Grocery REIT (TSX:SGR.UN) is another Walmart landlord, but in the United States. Slate Grocery has a diversified tenant base, with no single tenant contributing more than 10% of rental income. The majority of tenants are grocers and supermarkets. Slate Grocery will maintain its dividend per share. Still, you may see fluctuations because the dividend is paid in US dollars and Canadian investors get the dollar conversion.

Both supermarket landlords can pay you immediately.

How to Earn $252 in Monthly Dividends from $41,500

If you buy 1,000 shares of each, you can receive $3,030 in annual dividends. Since they are monthly payers, you can get $252 per month.

Stock	Share price	Dividend per share	Dividend on 1,000 shares	Investment amount
Slate Grocery REIT	$15.42	$1.18	$1,180.00	$15,420.00
SmartCentres REIT	$26.11	$1.85	$1,850.00	$26,110.00
Total			$3,030.00	$41,530.00

If you don’t need the dividend income in a given month, you can buy more units. For $252 you can buy nine units of SmartCentres or 16 units of Slate Grocery REIT. That adds $16-$19 to your recurring annual dividend.

Even if you buy 100 units of each REIT every year, it will cost you about $4,200. In 10 years you can have 1,000 units. Instead of procrastinating and thinking it’s not enough, start investing with as little money as possible. You’ll be amazed at how much you build up over time without even feeling the pinch in your pocket.