What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be going over 4 passive income stocks with dividend yields over 7%. I will be going over an income fund stock, a financial stock and 2 real estate investment trusts otherwise known as REITs. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
In recent months, the uncertainty in stock markets has made it increasingly challenging for Canadian investors to find promising growth stocks. The TSX undoubtedly boasts several growth stocks trading for attractive discounts. Unfortunately, the market volatility entails a considerable degree of capital risk. Dividend investing has become more popular due to the relative degree of stability income-generating stocks offer. Passive income isn’t the only thing you should consider these days, but it can help you get through the tough times until we’re on the other side. A lot of investors are likely very interested in finding passive-income stocks right now. And it makes sense. These companies are perfect to help you offset costs coming in from rising inflation and interest rates. Now, I’m not saying these are the perfect stocks to invest in for the long term, I got over a lot of stocks on this channel so make sure you do your OWN due diligence before investing. And, frankly, you should have your own long-term strategy when it comes to your investing. Anyways if you’re looking for some short-term and long-term income to offset the blow, here are four passive-income stocks yielding over 7%.
The first stock I will be going over is Chemtrade Logistics Income Fund (ticker symbol CHE-UN). Chemtrade offers industrial chemicals and services throughout the United States and Canada. It’s long been known as a high-dividend producer with a yield of around 7.55% as you can see in the details. Chemtrade Logistics stock boasts an insanely high dividend yield which the company pays out each month. Chemtrade was forced to slash its shareholder dividends in half during the pandemic, but it’s payouts have remained relatively stable over the past 10 years. Provided that the current situation continues to improve its financials, Chemtrade investors could see a substantial dividend hike in the coming months. The company recently saw revenue increase to $390.3 million during its latest earnings result, moving from debt to profit compared to the year before. Its adjusted EBITDA more than doubled year over year, with the company increasing its annual guidance. Shares are up 8.4% year to date. There has been a global shift to increase production across various industries. Many of these companies require specialty chemical products and services to ensure smooth and effective operations. The uptick in production means greater demand for Chemtrade Logistics’s products and services, driving more growth for the company in the coming quarters. Analysts have given Chemtrade stock a consensus target of $9.75 per share. It looks well positioned to meet and possibly exceed the target. Great Canadian income fund to do some research in!
The second stock I will be going over is Fiera Capital (ticker symbol FSZ). Fiera Capital is an investment manager focusing on institutional investors, mutual funds, and private clients. It has a broad range of growth and value stocks in small-cap companies. It currently offers a dividend yield at a big 9.11%. The company has long supported a high dividend yield that comes from identifying growth and value stocks — ones that allow it to pay out passive income at higher levels. Furthermore, it’s been around for some time, offering a compound annual growth rate (CAGR) of 10.4%. The company continued growth during the last quarter, seeing assets under management at $174.5 million. However, net earnings and adjusted EBITDA fell from the quarter, thanks mainly to the drop in the economy. Good Canadian financial stock to add to that watchlist!
The third stock I will be going over is Slate Grocery REIT (ticker symbol SGR-UN). Slate Grocery is a grocery-anchored real estate investment trust (REIT) with stores throughout the United States. The main benefit here is that these stores tend to offer long lease agreements, and are set up in large metro cities for stable income. It offers a dividend yield of around 8.37%. During its latest quarter, Slate managed to achieve a fully occupied space with total occupancy at 93.2%. Its portfolio is secured as 97% are through net leases, giving protection even during this market. However, while rental revenue climbed 20% year over year, net income fell by about 55%. Shares are where they were back in the beginning of January 2022. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance, and buy volume is strong currently. An average volume of around 187,000 shares daily for this stock and now at a low price due to market correction, this could be an amazing long term passive income stock to pick up.
The fourth and final stock I will be going over is True North Commercial (ticker symbol TNT-UN). The real estate bubble in Canada has started to shrink. It’s not as dramatic as it sounds. The sales data from the four most important housing markets in Canada shows that the sales are slowing down, and it might be a direct consequence of the Bank of Canada raising interest rates. True North is a REIT that owns and operates commercial properties throughout Canada. It mainly focuses on urban and strategic markets across the country, with long-term lease agreements coming from the government and credit-rated tenants. It offers a dividend yield of around 9.52%. Its latest earnings report saw the company collect 99.5% of its rent, with a 5.5-year average lease agreement, an increase of 3.8%. Its occupancy remained at 96%, with revenue increasing 4% driven by acquisitions even with inflation costs rising. TNT stock has two good things going for it. One is its capital-preservation potential. Apart from a few market-driven dips, the REIT usually manages to keep its price afloat or even grow it a bit. So, if you buy the dip and hold it long enough, your chances of gaining money via capital appreciation are much higher than your probability of losing money. Another positive of TNT stock is that it didn’t slash its payouts in 2020, even though its payout ratio more than doubled from 2019. This is quite impressive, considering the usual pure-play office property orientation of the REIT. The portfolio is decent enough, with 46 properties spread out over five provinces, worth about $1.4 billion. If you are unfamiliar with this stock, it is a great Canadian REIT with amazing passive income to check out.
Hope you guys enjoyed these 4 amazing Canadian dividend stocks paying a good amount of income. Choosing income-generating assets that can deliver reliable payouts is crucial for creating a successful passive-income stream. It pays to conduct your due diligence and pick companies to perform well based on current and future trends in broader markets. The 4 stocks I went over appear to tick all the right boxes. They could be an excellent asset for income-seeking Canadian investors. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. It is a win-win situation. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!