TFSA Investors: 3 Stocks Yielding Up to 6.8%

Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN) and these two other stocks can help provide your portfolio with lots of recurring cash flow.

| More on:
IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT

Image source: Getty Images

If you’re looking for some dividend stocks to add to your TFSA, there are plenty of good options out there. Below are three stocks that can help inject your portfolio with some recurring income and help maximize your returns.

Algonquin Power & Utilities Corp (TSX:AQN)(NYSE:AQN) is a solid utility stock that’s currently paying shareholders a dividend of around 5% per year. The company recently raised its payouts by 10% after posting yet another strong quarter that saw earnings increase from a year ago.

What makes Algonquin a great long-term buy is that it offers investors a good mix of dividends, growth and value. And not only does it pay a high dividend, but in the past year, its share price has risen by more than 20% while still not trading at high multiples today.

With the stock price trading just over $3 during the past 52 weeks, it hasn’t been a very volatile investment, which makes it appealing when looking at a good dividend stock to add to your TFSA.

Even while the markets have been struggling on concerns of tariffs, Algonquin has proven to be stable.

Hydro One Ltd (TSX:H) is another utility provider that recently raised its payouts. Although not as high of an increase as Algonquin, Hydro One increased its payouts by 5% as it tries to establish itself as a good dividend growth stock. The company doesn’t have that pedigree yet, as it’s only been trading on the TSX for a few years now, but in that short time, it has proven to be a good, stable option despite all the drama surrounding it.

In the past year, Hydro One’s stock price has risen 11%, as investors have not been punitive on the company for its failed pursuit of Avista Corp. The Ontario market has proven to be strong enough for the company, as its most recent results sales climbed by 11.6% and Hydro One recorded a strong profit for the fourth time in the past five quarters.

With a solid dividend yielding 4.4%, Hydro One is a great stock to hold for investors who want a payout and not worry about wild fluctuations in share price.

NorthWest Health Prop Real Est Inv Trust (TSX:NWH.UN) is the highest yield on this list, with shareholders earnings a yield of 6.8% per year. Although it’s not a stock that has increased its payouts recently, it can still offer a consistent stream of income for your portfolio with payments every month.

What makes this REIT unique is that not only can you diversify your portfolio by investing in healthcare real estate, but you’ll also have geographical diversification as well. NorthWest has assets in many different parts of the world, making it less reliant on the Canadian market. Given the concerns of a possible slowdown, it’s a good way to minimize your overall exposure.

That diversification also helps provide stability for investors, as over the past five quarters, NorthWest’s sales have been within a range of $85 million to $92 million. Operating income has also been very consistent, only once falling below $60 million during that period.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »