This 6% Dividend Giant Could Be the Perfect Retirement Partner

Aiming for a perfect retirement, where the utility and grocery bill is taken care of without worry? You have no debt and multiple sources of income. You move into a consulting role, working part-time or on a needs basis for some extra income for recreation. For this dream retirement, you need to start investing 20 years ahead in stocks.

Role of dividend investing in retirement planning

Speaking of multiple income sources, you can build dividend pools for each expense for a few years and then let your money work for you through the power of compounding. Consider building a $50,000 investment pool for utility bills, and another $50,000 for groceries and transportation.

This 6% dividend giant could be your retirement partner

In Canada, you have some good retirement partners that offer a 6% dividend yield. Among them is CT REIT (TSX:CRT.UN), a REIT that grows its distribution annually, offers a dividend reinvestment plan (DRIP), and has lower debt on its balance sheet. More than 95% of its debt is unsecured debentures, which are renewed annually. There is no construction loan, and mortgages make up a very small portion.

Moreover, CT REIT’s operating expenses are lower, considering it doesn’t spend much on marketing and broker commissions to fill occupancy. With its parent Canadian Tire occupying 92.2% of the total gross leasable area and contributing to 90.9% of annualized base minimum rent, it is fair to assume the financial strength of the retailer is better reflected in its REIT business.

CRT.UN increases dividends by 3% annually in July. However, it slowed this growth to 2.5% this year as the parent invested in the True North program to drive sales. Its same-store intensification and development projects were also slow compared to 2024.

The 6% yield of CT REIT can increase to 7.4% in 10 years and even 17.5% in 20 years.

How CT REIT can give you passive income after you retire

Let’s consider a scenario wherein you invest $12,000 in 2026 and $6,000 annually for the next nine years. Your total investment in CT REIT alone will come to $66,000. Now, invest in a DRIP (dividend reinvestment plan) from 2026 onwards.

For calculation purposes, we assumed CT REIT’s average unit price remains $16.5 for the first 10 years and $18 for the next 10 years, with dividends growing at a compounded annual growth rate (CAGR) of 2%. A $12,000 investment could buy 727 units at an average share price of $16.50. However, if you invest a lump sum today, you can buy 753 units at $15.92.

The 727 units can earn you $689 in annual dividend income. Add to it another $6,000 investment from your pocket, and you keep accumulating income-generating units. The first 10 years of accumulation could accelerate the wheel of compounding. After that, you can just let the $66,000 investment work for you through DRIP. The $4,858 dividend earned from the initial 10 years could more than double to $11,534 without a single dollar of investment from your pocket.

The post This 6% Dividend Giant Could Be the Perfect Retirement Partner appeared first on The Motley Fool Canada.

Should you invest $1,000 in CT Real Estate Investment Trust right now?

Before you buy stock in CT Real Estate Investment Trust, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and CT Real Estate Investment Trust wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• 3 Rock-Solid Dividend Stocks to Own for the Next 15 Years
• Here’s the Average TFSA and RRSP at Age 65 for Canadians
• Monthly Dividend Leaders: 3 TSX Stocks Paying Dividends Every 30 Days
• Transform Your TFSA Into a Cash-Generating Machine With Just $10,000
• Retirees: Supplement Your CPP Payments With These 2 Dividend Stocks

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.