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Looking for Passive Income? Here Are 3 Great Stocks That Pay Up to 6.2%

For investors who want to supplement their income, dividend stocks are a great way to do just that. As it’s passive income, it doesn’t require any work, allowing investors to just watch as the dividend payments roll in. Below are three stocks that will help you do just that.

Laurentian Bank of Canada (TSX:LB) is a bit of an underrated stock because it isn’t one of the big banks on the TSX. However, that can also be an advantage as isn’t priced as high, leaving more potential for the stock to rise in value. Laurentian trades at a very modest nine times earnings and the stock is even trading below its book value. It’s definitely a great value option for investors who don’t want to pay a premium for a dividend stock.

With good profit margins and a lot of consistency in its revenues, Laurentian provides the stability that investors will be after when looking for a dividend stock that they can just buy and forget about. Currently, Laurentian pays its shareholders a dividend of 6.2% per year, which is above average and it has risen over the years as well. There’s a lot to look from this stock, and there are many opportunities for investors to profit from owning it.

NFI Group Inc (TSX:NFI) also offers investors a great mix of value, dividends, and growth potential. My stock pick for April, NFI has unfortunately seen a tough month as a disappointing earnings report sent the share price down. However, over the long term, the trajectory for the stock remains very strong. Despite the struggles it has faced over the past year, it could generate some great returns for investors.

The drop in price has simply made NFI an even better buy, as it too trades at around nine times its earnings. The company recently raised its dividend payments to 42.5 cents per quarter, and it’s now yielding 5.3% annually. Since 2016, when NFI switched to quarterly payments, payouts have risen by 143%. Although that rate of growth is likely not going to continue, NFI looks to be committed to raising payouts and that’s great news for income investors.

SmartCentres Real Estate Investment Trst (TSX:SRU.UN) is a great option for investors who like to see long-term stability. And with a big tenant like Walmart anchoring many of its locations, SmartCentres has just that. Revenues have been consistently climbing year over year and were up 7.6% in 2018 while profits grew by 12.8%. The share price has also increased, rising by 17% over the past 12 months, and it’s recently coming off a 52-week high.

Although it may not be as cheap as the other stocks on this list, with a price-to-earnings ratio of 16, it’s still a good value buy that’s not far from its book value, trading at a multiple of just 1.4 at writing.

What makes REITs like SmartCentres appealing to investors is that they pay investors a monthly dividend, providing more regularity in cash flows. Currently, the stock pays a dividend yielding 5.3%  and it has also increased its payouts over the years.

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Fool contributor David Jagielski has no position in any of the stocks mentioned. NFI is a recommendation of Stock Advisor Canada.

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