How I’d Split $10,000 Between Canadian Tire and CT REIT for Maximum Dividends

It’s intriguing to consider how various Canadian dividend stocks might be incorporated into an investment strategy. This holds particular relevance if your aim is to generate consistent income via dividends. In such conversations, two frequently mentioned titles are typically brought up.
Canadian Tire
(
TSX:CTC.A
) and
CT REIT
(
TSX:CRT.UN
Although they both offer dividends to shareholders, Canadian Tire Corporation and Canadian Tire Real Estate Investment Trust (CT REIT) function within distinct segments of the retail sector. Canadian Tire is recognized as a major retailer offering products ranging from auto components and hardware to sporting goods and household items. On the other hand, CT REIT focuses on managing a collection of commercial estates with a substantial portion being occupied by branches of Canadian Tire itself. The strong connection between them presents an intriguing aspect for potential investors to ponder over. Therefore, deciding which one might be more profitable requires careful consideration.

Canadian Tire

Let’s begin by examining Canadian Tire more closely. This company has long been an integral part of the Canadian retail scene. Their chain of stores serves as a popular spot for customers seeking a broad array of items ranging from automotive needs to home essentials and leisure activities. According to their latest financial report, they posted total revenues of $4.51 billion.

For that specific quarter, the net income amounted to $227.3 million, equivalent to an earning per share of $3.93. Canadian Tire boasts a longstanding tradition of distributing part of its profits back to shareholders through dividends; they have most recently announced a quarterly dividend set at $1.775 per share. This regular distribution highlights their dedication to providing returns to stakeholders holding shares in the company. Given its robust brand influence throughout Canada, Canadian Tire’s financial outcomes frequently serve as an indicator of the overall health of the country’s retail sector and economic climate.

CT REIT

Let’s now turn our attention to CT REIT. This company mainly focuses on acquiring and overseeing revenue-generating commercial real estate assets. One aspect that sets CT REIT apart is its strong connection with Canadian Tire. Many of the properties within CT REIT’s holdings belong to
strategically
situated and rented out to Canadian Tire stores through long-term contracts. This setup offers CT REIT a fairly steady and foreseeable source of lease revenue.

CT REIT reported in their most recent financial statement for Q1 2025 that their total revenues stood at $145.4 million, with net earnings amounting to $199.7 million. For those seeking consistent income from investments, CT REIT provides monthly payouts. They stated a monthly distribution of $0.0771 per unit for April 2025, which equates to an annualized payout rate of $0.9252 per unit. Their steady flow of income can be attributed mainly to the extensive long-term lease agreements held with reputable tenants such as Canadian Tire.

Foolish takeaway

An investor could decide to distribute $10,000 across shares of Canadian Tire and CT REIT to strike a balance between capital appreciation and earnings from dividends. Suppose an individual seeks higher growth prospects coupled with consistent payouts; they may opt to invest a greater share here. As an illustration, putting $6,000 into Canadian Tire allows them to benefit from the retail industry’s performance as well as the possibility of increased stock value down the line alongside regular dividend payments.

The leftover $4,000 can subsequently be put into CT REIT to take advantage of its reliable and regular monthly payouts. Such an investment approach seeks to capitalize on Canadian Tire’s prospects for expansion and potential hikes in dividends down the line. At the same time, this move relies on the dependable and recurrent disbursements from CT REIT as a key element providing stability and prompt income generation within the overall portfolio composition.

Nonetheless, it is crucial for every investor to meticulously assess their personal investment objectives, capacity for risk, and comprehensive financial standing. This is particularly important when deciding how to appropriately distribute resources between these categories.
dividend
– paying entities, or any other investments for that matter. It’s always a prudent move to consult with a certified financial advisor prior to making any investment choices.

The post
Canadian Tire versus CT REIT: My Strategy for Allocating $10,000 Among These Connected Dividend Stocks
appeared first on
The Motley Fool Canada
.

More reading

• Should You Buy, Sell, or Hold Canadian Tire in 2025?
• Leading Canadian Value Stocks for Expansion and Revenue I Would Purchase
• Exposure to Real Estate Without Owning Properties: 3 Canadian REITs Worthy of Consideration
• 2 Weather-Resistant TSX Stocks You Can Purchase at Any Time
• Monthly Passive Income: 2 REITs That’ll Provide Payments During the Tariff Turbulence

Fool contributor Amy Legate-Wolfe does not own shares in any of the companies listed above. The Motley Fool also does not have a stake in any of these stocks. Additionally, The Motley Fool reports having no positions in the mentioned securities.
disclosure policy
.