How I'd Allocate $50,000 in Retirement Stocks in Today's Market
The tariff war has been the theme of 2025. Developments on the tariff front are driving the markets. Recently, the stock market surged on signs of optimism as Canada's Prime Minister is in constant communication with the U.S. President over lifting tariffs. The TSX Composite Index neared its record high, recovering 17% from the April dip when retaliatory tariffs were paused. This volatility presents an opportunity as well as a threat for retirees.
If you are considering allocating your retirement money to term deposits, the Bank of Canada is slashing interest rates, which could erode the purchasing power of your retirement fund.
The key to mitigating risk is diversification. Consider diversifying your money across sectors and asset classes that are uncorrelated. To give you an example, factors such as interest rates, economic growth, and house prices, which affect the real estate sector, do not affect the technology sector. Consider holding one stock from each sector.
CT REIT (TSX:CRT.UN) buys, maintains, intensifies, and develops Canadian Tire stores. The retailer occupies 92.8% of the REIT's leased area and contributes 91.8% to the base minimum rent. While the REIT's performance is linked to that of the retailer, the impact is only felt when there is a significant change. Canadian Tire is carrying out its True North growth strategy, in which it will open more than 30 Canadian Tire and 18 Mark's stores. CT REIT may get the first choice to carry out the store intensification and development, but the pace will continue to be slow as it has been for the last few quarters.
Nevertheless, the rent from existing stores will continue. In the first quarter, CT REIT's net income jumped 4.5%, and adjusted funds from operations jumped 4.7% as it realized higher rent from the intensification projects it completed last year. This helped the REIT lower its dividend payout ratio to 72.2% from 73.1% a year ago. The REIT increased distributions by 3.3%, passing on the higher income to unitholders.
You can invest $10,000 in this stock, buy 618 units, and get $48.8 per month in payouts at a $0.07903 monthly distribution per unit. This amount could grow annually by 3% for decades while your $10,000 remains intact, or grow by 5–10% as CT REIT's unit price increases.
You could allocate another $10,000 to a resilient growth stock, Constellation Software (TSX:CSU), to increase your portfolio value. While this amount may only buy you two shares, it could double your money in five years. The market volatility has pulled down some stock prices, creating an opportunity for Constellation to buy small vertical-specific software companies at a discount.
Most of Constellation's acquisitions have sticky and recurring cash flows from maintenance contracts. In the short term, its revenue and free cash flow growth may slow amid weak economic activity. However, growth may accelerate next year as Constellation consolidates the earnings of acquired companies.
The stock made an all-time high of $5,300 in May and has dipped 7.7% since then. Now is a good time to buy and hold the stock. Constellation's enterprise value will increase as more companies are added to its earnings, and consequently, its share price will also rise.
You can allocate the remaining $30,000 to stocks that benefit from high inflation, as you will buy their products regardless of the price. This includes grocery and natural gas, used for heating, vehicles, and cooking.
Loblaw (TSX:L) stock has significantly outperformed some of the high-growth tech stocks, surging 236% in the last five years. It is a buy even though the stock is trading near its all-time high, as there is more upside. Loblaw runs supermarkets, pharmacies, and apparel stores. High inflation could shift demand from high-ticket items to essentials, and Loblaw will benefit from increased volumes. Whereas the opposite happens in a strong economy, when Loblaw benefits from higher profit margins, helping your portfolio fight inflation.
Canadian Natural Resources can also help fight inflation with its 5.3% dividend yield, which is growing at an average annual rate of over 20%.
The post How I'd Allocate $50,000 in Retirement Stocks in Today's Market appeared first on The Motley Fool Canada.
More reading
Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS]
Market Volatility Toolkit
Best Canadian Stocks to Buy in 2025
Beginner Investors: 4 Top Canadian Stocks to Buy for 2025
5 Years From Now, You'll Probably Wish You Grabbed These Stocks
Subscribe to Motley Fool Canada on YouTube
Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Constellation Software. The Motley Fool has a disclosure policy.
2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 hours ago
- Yahoo
Charter Hall Long WALE REIT Full Year 2025 Earnings: EPS Misses Expectations
Explore Charter Hall Long WALE REIT's Fair Values from the Community and select yours Charter Hall Long WALE REIT (ASX:CLW) Full Year 2025 Results Key Financial Results Revenue: AU$346.9m (up 141% from FY 2024). Net income: AU$118.3m (up from AU$510.9m loss in FY 2024). Profit margin: 34% (up from net loss in FY 2024). EPS: AU$0.17 (up from AU$0.71 loss in FY 2024). Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. All figures shown in the chart above are for the trailing 12 month (TTM) period Charter Hall Long WALE REIT EPS Misses Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. In the last 12 months, the only revenue segment was REIT - Commercial contributing AU$346.9m. The most substantial expense, totaling AU$166.8m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how CLW's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 3.5% decline forecast for the REITs industry in Australia. Performance of the Australian REITs industry. The company's shares are up 6.8% from a week ago. Risk Analysis What about risks? Every company has them, and we've spotted 3 warning signs for Charter Hall Long WALE REIT (of which 2 can't be ignored!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11 hours ago
- Yahoo
Do Wall Street Analysts Like Ventas Stock?
Valued at a market cap of $31.2 billion, Ventas, Inc. (VTR) is a healthcare real estate investment trust (REIT) based in Chicago, Illinois. The company acquires, owns and leases senior housing, life science, research & innovation (R&I), and healthcare properties. This healthcare REIT has underperformed the broader market over the past 52 weeks. Ventas has gained 18.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 21.9%. Nonetheless, on a YTD basis, the stock is up 16.7%, outpacing SPX's 7.8% return. More News from Barchart Dear Ford Stock Fans, Mark Your Calendar for August 11 Cathie Wood Is Buying Shares of This Little-Known Ethereum Treasury Company. Should You? Robinhood Stock Seemingly Can't Be Stopped in 2025. Is It Too Late to Buy HOOD Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Zooming in further, VTR has surged past the Real Estate Select Sector SPDR Fund's (XLRE) marginal uptick over the past 52 weeks and 2.3% rise on a YTD basis. On Jul. 30, VTR delivered better-than-expected Q2 results, prompting its share price to rise 1.1% in the following trading session. Primarily due to higher outpatient medical and research portfolio revenues, as well as growth in resident fees and services, the company's overall revenue grew 18.3% year-over-year to $1.4 billion, surpassing consensus estimates by 3.6%. Furthermore, its adjusted same-store cash NOI advanced 6.6% from the year-ago quarter, reaching $485.3 million. In comparison, its normalized FFO per share of $0.87 improved 8.8% from the same period last year and came in 2.4% above analyst forecasts. For the current fiscal year, ending in December, analysts expect Ventas' FFO to grow 7.8% year over year to $3.44 per share. The company's earnings surprise history is promising. It exceeded or met the consensus estimates in each of the last four quarters. Among the 19 analysts covering the stock, the consensus rating is a "Strong Buy' which is based on 14 'Strong Buy,' two "Moderate Buy,' and three 'Hold' ratings. The configuration has remained reasonably stable over the past three months. On Jul. 31, Scotiabank analyst Nicholas Yulico maintained a "Hold" rating on VTR and set a price target of $72, implying a 4.8% potential upside from the current levels. The mean price target of $75.50 represents a 9.9% premium from VTR's current price levels, while the Street-high price target of $84 suggests an upside potential of 22.3%. On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Yahoo
Top 3 Retail REITs to Watch as Industry Sentiment Strengthens
The Zacks REIT and Equity Trust - Retail industry constituents are well-positioned to capitalize on favorable market conditions and evolving strategies. Strong consumer spending and limited new development underpin healthy fundamentals, while high-performing retail hubs continue to attract tenants. The relevance of physical retail remains strong, supported by omnichannel models and experience-driven formats. Companies like Brixmor Property Group Inc. BRX, Phillips Edison & Company, Inc. PECO and Urban Edge Properties UE are poised to benefit. However, ongoing e-commerce expansion, shifting trade policies and elevated interest rates pose notable headwinds. These pressures may lead to tighter margins, increased financing costs and a potential uptick in store closures, underscoring the importance of a strategic tenant mix and capital discipline. Industry Description The Zacks REIT and Equity Trust - Retail industry comprises REITs that own, develop, manage and lease various retail properties, including regional malls, outlet centers, grocery-anchored shopping venues and power centers with big-box retailers. Net lease REITs focus on freestanding properties, where tenants bear rent and most operating expenses. Retail REIT performance is significantly impacted by economic conditions, employment levels and consumer spending trends. Key drivers of demand include the geographic location of properties and the demographics of surrounding trade areas. While the industry faced significant challenges from declining foot traffic, store closures and retailer bankruptcies in the past, it is now experiencing a rebound, driven by renewed consumer interest in in-store shopping, signaling a positive shift in the retail landscape. What's Shaping the Future of the REIT and Equity Trust - Retail Industry? Experiential Retail and Omnichannel Integration Are Revitalizing the Sector: Retail REITs are benefiting from the transformation of physical stores into immersive, experience-driven destinations. Experiential retail, incorporating dining, entertainment and interactive elements, is driving stronger foot traffic, longer visit durations and higher sales. This evolution aligns with changing consumer preferences that favor engagement over transactional shopping. Complementing this trend is the growth of omnichannel strategies, as retailers, including digitally-native brands, are establishing physical storefronts to reduce return costs and deepen customer relationships. Programs like Buy Online, Return In Store ('BORIS') enhance convenience while boosting in-store traffic. Another key tailwind is solid leasing demand from consumer service providers and cross-border entrants expanding into U.S. markets. These tenant categories have shown resilience amid macroeconomic uncertainty, helping diversify the tenant base and drive long-term occupancy stability. Altogether, these factors are reinforcing the importance of brick-and-mortar assets in a digitally integrated retail Supply and Strategic Revamps Support Fundamentals: Retail REITs are also benefiting from a structurally constrained supply pipeline. New construction remains limited due to elevated building costs, labor shortages and stricter financing conditions — factors that are unlikely to reverse quickly. As a result, national vacancy rates remain historically tight. This low supply environment supports continued rent growth, especially in prime locations. Many REITs are capitalizing on this low-supply environment by redeveloping and repurposing underperforming assets, often adding non-traditional tenants such as healthcare services, gyms or entertainment venues. Mixed-use developments are also gaining momentum, turning outdated retail sites into vibrant, community-oriented destinations. These strategies are reinforcing portfolio durability and improving rental income visibility across economic Volatility, E-Commerce Pressure and Tariffs Cast Shadows: Despite positive structural shifts, retail REITs face ongoing pressure from macroeconomic headwinds. High interest rates, inflation and tariff changes are prompting retailers to delay leasing decisions or scale back expansion plans. Store closures are now outpacing openings, and leasing activity is slowing. Rising e-commerce penetration dampens demand for traditional retail space, especially in commodity-driven segments. Tariffs on low-cost imports could further erode retailer profitability, limiting expansion plans and increasing the likelihood of further bankruptcies, leading to vacancy risk and challenging cash flow visibility for retail REITs in the near term. Zacks Industry Rank Indicates Bright Prospects The Zacks REIT and Equity Trust - Retail industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #69, which places it in the top 28% of around 250 Zacks industries. The group's Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The industry's positioning in the top 50% of the Zacks-ranked industries is a result of the upward funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group's growth potential. Since March 2025, the industry's FFO per share estimates for 2025 and 2026 have moved 1.64% and 0.2% north, respectively. Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture. Industry Underperforms Sector and S&P 500 The REIT and Equity Trust - Retail Industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year. The industry has declined 5.5% during this period compared with the S&P 500's rise of 19.4% and the broader Finance sector's growth of 19.1%. One-Year Price PerformanceIndustry's Current Valuation On the basis of the forward 12-month price-to-FFO, which is a commonly used multiple for valuing retail REITs, we see that the industry is currently trading at 14.62X compared with the S&P 500's forward 12-month price-to-earnings (P/E) of 22.54X. The industry is also trading below the Finance sector's forward 12-month P/E of 16.71X. These are shown in the chart below. Forward 12 Month Price-to-FFO (P/FFO) Ratio Over the last five years, the industry has traded as high as 18.89X and as low as 12.21X, with a median of 15.19X. 3 Retail REIT Stocks to Consider Brixmor: Headquartered in New York, this REIT focuses on the ownership and management of open-air shopping centers across the United States. Its portfolio features a well-balanced tenant base that includes flourishing national, regional and local shopping centers are strategically positioned near residential areas, offering convenient access and supporting last-mile distribution. The portfolio features a balanced tenant mix, combining non-discretionary and value-focused retailers with consumer-focused service providers, enhancing foot traffic and ensuring consistent demand across a variety of economic currently carries a Zacks Rank #2 (Buy). Over the past month, the Zacks Consensus Estimate for the current-year FFO per share has witnessed a marginal upward revision to $2.23, indicating a 4.7% year-over-year jump. The stock has also risen 3.7% over the past three months. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Phillips Edison: PECO, based in Cincinnati, OH, specializes in the ownership and operation of high-quality, grocery-anchored neighborhood shopping centers. As of June 30, 2025, the company managed 327 shopping centers, including 303 wholly owned centers containing 34.0 million square feet across 31 states and 24 shopping centers owned in three institutional joint offers omnichannel grocery-anchored shopping experiences. It enjoys strong-credit neighbors and a diversified mix. With high-quality, necessity-based tenants and resilient foot traffic trends, PECO benefits from consistent demand. It is also among the REITs with the lowest tenant exposure to changes in tariff rates. Strong tenant retention, solid same store net operating growth, decent lease spreads, and consistent dividend income underscore its operational excellence and long-term value currently carries a Zacks Rank #2. Over the past month, the Zacks Consensus Estimate for 2025 FFO per share has witnessed a 1.2% upward revision to $2.58, reflecting analysts' bullish outlook. Though the stock has declined 5.6% over the past three months, it currently offers a good entry point. Urban Edge Properties: This New York-based company is engaged in the owning, managing, acquiring, developing and redeveloping retail real estate in urban communities, primarily in the Washington, DC to Boston corridor. Its properties are concentrated in the most densely populated, supply-constrained region in the country, assuring a steady flow of a large portion of Urban Edge's portfolio is anchored by high-performing essential retailers, which ensures stable cash flows. Particularly, 80% of portfolio value is grocery-anchored. It has a healthy balance sheet, with only 8% of debt maturing through 2026. It targets long-term FFO growth of 4-5% annually, supported by a strong lease pipeline (≈9% of NOI) and strategic redevelopment and capital currently has a Zacks Rank #2. The Zacks Consensus Estimate for its 2025 FFO per share has been raised 1.4% over the past month to $1.40, indicating a 3.7% year-over-year increase. The stock has rallied 6.8% in the past three months. Note: Funds from operations (FFO) is a widely used metric to gauge the performance of REITs rather than net income as it indicates cash flow from their operations. FFO is obtained after adding depreciation and amortization to earnings and subtracting the gains on sales. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Urban Edge Properties (UE) : Free Stock Analysis Report Brixmor Property Group Inc. (BRX) : Free Stock Analysis Report Phillips Edison & Company, Inc. (PECO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
