High-Yield Dividend REIT Stocks to Hold As Interest Rates Remain Low

On September 27 Bank of Canada Stephen Poloz gave an update on the bank’s approach to future interest rate hikes. He struck a cautious tone and emphasized there was “no predetermined path” for future rate hikes. This somewhat dovish tone could bode well for a real estate sector in Canada that has been bleeding since the spring.

H&R Real Estate Investment Trust (TSX:HR.UN) stock has climbed 2.1% month-over-month and has declined 3.7% in 2017. The company announced its second quarter results on August 10. Net income increased $49 million compared to the second quarter of 2016. The stock boasts a dividend of $0.12 per share representing a dividend yield of 6.4%.

Shares of RioCan Real Estate Investment Trust (TSX:REI.UN) have declined 10.2% in 2017 and 12% year over year. The company released its second quarter results on August 3. Revenue experienced 3.6% from Q2 2016 to $286 million. Operating income also climbed 8.5% to $185 million from the previous year. RioCan stock offers a dividend of $0.12 per share with a dividend yield of 5.9%.

Cominar REIT (TSX:CUF.UN) stock is down 7.9% in 2017 and 10.8% year over year. In its second quarter results retention rate was up 49.8% and net operating income declined 5.7%. The stock offers a dividend of $0.09 per share representing an attractive dividend yield of 8.4%.

With Canadian economic growth slowing in July the Bank of Canada may hold off a third rate hike in October which could create a great environment for real estate stocks.