Back in March, I’d discussed three strategies for TFSA investors. I tend to value an aggressive strategy in a TFSA, especially for young investors, but an income-focused strategy can be highly lucrative. This is especially true when investors lock up equities that pay monthly income.
Today, we are going to look at three stocks to stash in your TFSA. Each one offers a monthly dividend payout that can help you scoop up tax-free income at a nice clip.
Chorus Aviation (TSX:CHR)
Chorus Aviation is a Canadian holding company that aims to deliver regional aviation to the world through its many businesses. Shares of Chorus had climbed 32.9% in 2019 as of close on May 1. The stock was still down 3.7% from the prior year.
Chorus recently announced that it will release its first-quarter results on May 8. In 2018, net income increased $6.4 million from the prior year to $121.8 million, or $0.89 per share. Adjusted EBITDA surged 19.4% year over year to $342.7 million on the back of increased earnings in the regional aircraft leasing segment.
Chorus last paid out a monthly dividend of $0.04 per share. This represents an attractive 6.4% yield. Chorus stock boasts a high valuation ahead of its next earnings release, as the stock is trading close to 52-week highs in early May. Still, income investors can feel good about the nice yield going forward.
Pembina Pipeline (TSX:PPL)(NYSE:PBA)
Pembina Pipeline is a Calgary-based integrated energy infrastructure company based in western Canada and North Dakota. Shares of Pembina had climbed 17.7% in 2019 as of close on May 1. The stock was up 16% from the prior year.
The company announced that it will deliver its first-quarter results on May 3. As of this writing, those results have not been made public, but readers today will have access to the Friday earnings. In 2018, Pembina achieved record results as total revenue rose to $7.35 billion compared to $5.40 billion in the prior year. Net earnings climbed to $1.27 billion, or $2.28 per share, over $883 million, or $1.87 per share, in 2017.
On April 9, Pembina declared a common share dividend of $0.19 per share. This represents a 4.7% yield.
Extendicare is a Markham-based long-term care facilities company. Early last year, I’d discussed why changing demographics were on the side of companies like Extendicare. Aging demographics in Canada will see the consumer base for Extendicare balloon in the coming decades. It is a fantastic long-term growth option and made even better when we take its dividend into account.
The company is set to release its first-quarter results after the market closes on May 14. In 2018, total revenue increased to $1.12 billion compared to $1.09 billion in the prior year. Net operating income from Canadian operations rose 2.3% year over year to $3 million.
Extendicare last announced an April 2019 dividend of $0.04 per share. This represents a tasty 5.9% yield. Extendicare is a bit on the pricey side ahead of its next earnings report, but once again the income boon makes it a suitable target in early May.
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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. Chorus, Pembina, and Extendicare are recommendations of Stock Advisor Canada. Chorus is a recommendation of Dividend Investor Canada.