Canadian Dividend Stocks to Buy Now: March 2015

Dividend stocks are attractive because they pay an income whether the market is going up, sideways, or even going down. Here are some dividend stocks which you can consider. The stocks I’m about to mention pays 115% to 165% more income than the index iShares S&P/TSX 60 Index Fund (TSE:XIU), which pays out a yield of 2.6%.

High Dividend Canadian Companies

This list shows the current yields, and I believe are good starting yields to start buying into these companies if they are a fit for your portfolio.

Buy Northern Property REIT for Income and Capital Gains

Northern Property REIT logo

Northern Property REIT (TSX:NPR.UN) is a real estate investment trust which owns housing properties, such as rental apartments and town homes. It collects rent from a diversified portfolio of properties located across seven provinces in Canada.

Northern Property REIT has paid a monthly distribution for 12 years and have never reduced it. So income investors can have a peace of mind owning it for current income. Right now, it pays a monthly distribution of $0.1358 per unit with a yield of 6.9%.

Because it is experiencing some headwinds in some of its properties in resource provinces, Northern Property REIT can be purchased at a margin of safety today. In recent history, its normal price-to-funds from operations ratio (P/FFO) is 12.8. Using its 2014 funds from operations of $2.37 per unit, and its closing price of $23.57, its P/FFO is at 9.9. This indicates a discount of over 20%.

If you decide Northern Property REIT is a fit for your portfolio, remember to buy it in your TFSA or RRSP because its distributions are not eligible dividends. You can still buy it in your non-registered account, but there’s some tax hassle.

Buy Plaza Retail REIT for a growing Income


Plaza Retail REIT (TSX:PLZ.UN) currently yields 5.7%. I first introduced Plaza Retail last month in the February Dividend Stocks Watchlist. Since then, it has gone up to a high of $4.60 and back down to its current $4.38. Short-term price movements are meaningless unless you’re going for a quick trade. Please note the reduced fair value estimation of Plaza Retail from the previous $4.95. The closer to the end of 2015, the more accurate the estimation should be.

In Summary

Ticker *Price *Yield 1FV Est. Margin of Safety Upside Potential
TSX:NPR.UN $23.57 6.91% $30 21% 27%
TSX:PLZ.UN $4.38 5.71% $4.8 12% 9.6%
  • * Closing Prices & Yields of March 17, 2015.
  • Margin of Safety = Margin of Safety from Fair Value Estimate (FV Est.)
  • Margin of Safety = (FV Est. – Price) / FV Est.
  • Upside Potential = Upside Potential to FV Est.
  • 1Fair Value estimation by end of 2015 in F.A.S.T Graphs

Both Northern Property REIT and Plaza Retail REIT are priced at a discount, though the former is at a deeper discount. What are you adding to your income portfolio today?

If you like what you've just read, consider subscribing via the "Subscribe Here" form at the top right so that you will receive an email notification when I publish a new article.

Disclosure: At the time of writing, I am long TSX:NPR.UN, and TSX:PLZ.UN.

Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.

Get Exclusive Articles from me on Seeking Alpha

  • Access my portfolio of high-quality U.S. and Canadian dividend stocks.
  • Real-time updates of when I buy or sell from this portfolio.
  • Get best ideas of the top 3 dividend stocks from my watchlist. Updated each month.
Learn More