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TFSA Investors: Gobble Up Income With These 5 Dividend Stocks Yielding up to 8.7%

The S&P/TSX Composite Index has now dropped 9% in 2018 as of close on October 29. This month’s pullback has spooked investors across the developed world and may be inspiring Canadians to rethink their strategies as we head into the final two months of the year.

Last week, I’d discussed a balanced strategy for RRSP investors that involved stashing equities that offered both growth and income. Today, we will look at high-yield dividend plays for TFSA investors. Many Canadians have feasted off the gains provided by the young cannabis sector over the past several years. Those who have taken tidy profits from those stocks should consider reinvesting into equities that offer attractive income, especially as economic headwinds build.

We are going to look at five stocks that such an investor can target in November.


Fortis was my top stock pick for the month of October. Shares have climbed 2.6% month over month as of close on October 29. The company is set to release its third-quarter results in early November.

Fortis last paid out a quarterly dividend of $0.425 per share, representing a 3.9% yield. The company has delivered dividend growth for 44 consecutive years.

National Bank (TSX:NA)

Canadian bank stocks have taken a beating in October, and National Bank is no different. The stock has dropped 8.6% over the past month. This pushed the stock into negative territory for 2018.

National Bank is projected to release its fourth-quarter and full-year results in early December. The board of directors last announced a quarterly dividend of $0.62 per share, which represents a 4.1% yield.

Cineplex (TSX:CGX)

The month of October put a halt to some great momentum for Cineplex stock. Shares are still up 19.6% over a three-month span as of close on October 29. The stock is down 0.7% month over month.

Cineplex last announced a monthly dividend of $0.145 per share, which represents an attractive 4.9% dividend yield. The company has benefited from a nice rebound for the film industry in the summer of 2018 compared to the worst numbers in two decades in the prior year.

TransAlta Renewables (TSX:RNW)

TransAlta Renewables stock has dropped 6.7% month over month. Shares are down nearly 20% in 2018 so far. In the second quarter, the company reported adjusted funds from operations of $73 million, which was up 14% from the prior year. Renewable energy production has dipped marginally from the first six months of 2017.

On August 2, the company declared a monthly dividend of $0.07833 per share, representing a monster 8.7% yield. Renewable energy companies are a greater risk, as the green energy push has lost political ground, while rising interest rates have also broadly hurt income plays in the utility sector.

Suncor (TSX:SU)(NYSE:SU)

Suncor stock has dropped 13% over the past month. October pushed Suncor stock into negative territory for 2018 after what had been a very solid year. Suncor had been the beneficiary of rock-solid earnings and a bounce back for oil and gas prices in the spring of this year.

Suncor is expected to release its third-quarter results tomorrow. The company last paid out a quarterly dividend of $0.36 per share, which represents a 3.2% yield. Suncor has delivered dividend growth for 15 consecutive years.

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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.

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