Lazy RRSP Investors: Buy These 3 Stocks to Cement Passive Income of $9,200/Year

This trio of high-yield plays, including Royal Bank of Canada (TSX:RY)(NYSE:RY), can provide the fat income you need now.

Silhouette of businessman sit on chair and hold a cigar and looking at the city in night.

Image source: Getty Images

Hi again, Fools. I’m back to highlight three top high-yield dividend stocks. As a reminder, I do this because stocks with attractive yields

  • provide a fat income stream in both good and bad markets; and
  • tend to outperform the market over the long run.

The three stocks below offer an average dividend yield of 4.6%. Thus, if you spread them out evenly in a $200K RRSP account, the group will provide you with an annual income stream of $9,200. And that’s on top of all the potential price appreciation you could earn.

Without further ado, let’s get to our trio of big yielders.

Feel the power

Leading off our list is retail real estate company RioCan REIT (TSX:REI.UN), which currently offers a hefty dividend yield of 5.4%.

RioCan’s payout continues to be supported by a massive retail portfolio of 230 properties, strong occupancy rates (roughly 97%), and increasing exposure to residential real estate. In the most recent quarter, net income spiked 42% to $194.5 million while funds from operations (FFO) came in at $142.2 million.

“RioCan’s industry-leading major market portfolio, leadership team, balance sheet, and development pipeline continued to deliver unitholder value in the first quarter of 2019,” said CEO Edward Sonshine. “Our strategy to increase our presence in highly desirable, fast-growing markets will fuel FFO per unit growth long into the future.”

RioCan is up 12% in 2019.

Royal treatment

With a fat dividend yield of 3.9%, financial services giant Royal Bank of Canada (TSX:RY)(NYSE:RY) is next on our list.

RBC’s dividend is underpinned by massive scale, a highly regulated banking environment, and, most importantly, a dominant competitive position. In fact, RBC boasts a number one or two market share in all key market segments in Canada.

The most recent quarter only strengthened that leadership position: Q1 revenue rose 14% on volume growth and margin expansion while earnings per share improved 7%.

“Our consistent earnings growth is a testament to the strength of our diversified business model and our strategy to transform the bank to create more value for clients,” President and CEO Dave McKay said.

RBC shares are up 13% so far in 2019.

Communication skills

Rounding out our list is telecom company Shaw Communications (TSX:SJR.B)(NYSE:SJR), whose shares offer a dividend yield of 4.4%.

The stock has slipped a bit over the past month on growth concerns, providing patient Fools with a particularly timely income opportunity. In the most recent quarter, revenue improved 2.3% to $1.32 billion and free cash flow increased to an impressive $176 million. Meanwhile, Shaw’s wireless segment saw about 62 thousand total net additions and record low postpaid churn.

“We are reaching more Canadians with our affordable data-centric plans, expanded retail and consumer-friendly practices, all of which are changing the competitive landscape,” said CEO Brad Shaw.

Shaw shares are up 9% so far in 2019.

The bottom line

There you have it, Fools: three top high-yield stocks worth checking out.

As always, don’t view them as formal recommendations. Instead, look at them as a starting point for more research. A dividend cut (or halt) can be especially painful, so you’ll still need to do plenty of due diligence.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.   

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Dividend Stocks

2 TSX Stocks Poised to Have a Big Summer

Restaurant Brands International (TSX:QSR) stock and another darling that could be too cheap to ignore this summer.

Read more »

Dividend Stocks

Forget Fortis Stock: Buy This Magnificent Utilities Stock Instead

Looking for high dividends and returns? Then I'm sorry, but Fortis (TSX:FTS) stock probably isn't for you.

Read more »

Increasing yield
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye on

Have these top TSX dividend stocks finally bottomed?

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Any near-term decline in these two top Canadian dividend stocks will make them look even more attractive.

Read more »