As investors are always searching for high-yielding dividend stocks to add to their TFSA portfolios, let’s take a look at two high-yielding dividend stocks that may have been ignored due to a lack of familiarity.
But read on, because these stocks have been clear outperformers and should continue to provide investors with strong yields going forward.
With a current dividend yield of 4%, investors can feel reassured and have confidence in this dividend by looking at the company’s history of dividend increases. And management’s plan to target 5-9% annual growth in distributions and long-term ROEs of 12-15% seems highly reliable.
The company’s assets are long-life assets that provide essential services. These are assets such as regulated utilities terminals, energy transmission and distribution, railroads, toll roads, as well as in newer, fast-growing industries, such as communications infrastructure and water infrastructure.
These assets bring predictable cash flows and have long-term contracts.
Since 2009, Brookfield has grown its funds from operations by a compound annual growth rate (CAGR) of 24% and it’s per-unit distribution by a CAGR of 12%.
Labrador Iron Ore Royalty Corp. (TSX:LIF)
As long as the Chinese and the world economies remain strong, iron ore will remain firm, and Labrador Iron Ore Royalty Corp. will continue to outperform and provide investors with that all-important income.
The company has increased its dividend several times in the last two years and has paid special dividends that have amounted to $1.65 per share in 2017.
All told, shareholders have received dividends of $2.65 this year for an actual dividend yield (regular dividend plus special dividends) of 10.2% in 2017 based on today’s share price.
The company pays a regular quarterly dividend of $0.25 per share, plus special dividends have been paid out when times have been good — and times have been very good.
Because it is a royalty company that receives royalties from the Iron Ore Company of Canada’s iron ore sales, investors can feel confident knowing that this iron ore is high quality and produced in Canada.
NorthWest Health Prop Real Est Inv Trust (TSX:NWH.UN)
With a current dividend yield of 7.18%, NorthWest is a great addition to your portfolio for its exposure to one of the biggest demographic trends, the aging population, and for its high-quality global and diversified portfolio of healthcare real estate properties.
Healthcare properties generally have stable occupancies and long-term leases, which make the underlying REIT a defensive one that is attractive for long-term investors.
The shares are trading at just over book value and present a great opportunity to establish positions.
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Fool contributor Karen Thomas does not own shares in any of the companies mentioned in this article. NorthWest Health Prop Real Est Inv Trust and Brookfield Infrastructure Partners are recommendations of Stock Advisor Canada.