Worried Retirees: Add Passive Income of $11,325/Year With These 3 Stable Stocks

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

Hello 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 healthy 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 4.53%. If you spread them out evenly in a $250K RRSP account, the group will provide you with an annual income stream of $11,325; on top all the appreciation you could earn.

Let’s get to it.

King of the north

Leading off our list is discount grocery store operator The North West Company (TSX: NWC), which currently offers a dividend yield of 4.4%.

North West’s robust payout continues to be backed by limited competition in its regions (Northern Canada, Alaska, the Caribbean, and the South Pacific), strong long-term growth initiatives, and a nicely diversified line-up of chains.

In the most recent quarter, revenue improved 6.2% to $494.5 million, same-store sales increased 4.6%, and earnings grew 42%.

“As expected, the strongest performance came from northern Canada, where we are focused on capturing sales and market share within fast-growing local economies tied to natural resources and infrastructure spending,” said President and CEO Edward Kennedy.

North West shares are off 6% so far in 2019.

Presence of royalty

With an attractive dividend yield of 3.8%, financial services giant Royal Bank of Canada (TSX: RY)(NYSE: RY) is next on our list.

Royal Bank’s dividend is supported by a favorable competitive and regulatory environment, as well as a nicely diversified business model. In Q2, for example, strong growth in its Capital Markets, Personal & Commercial Banking, and Wealth Management segments helped offset lower earnings in Investor & Treasury Services and Insurance.

Overall income in the quarter improved 6% as revenue increased 14% to $11.5 billion.

“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,” said President and CEO Dave McKay.

RBC shares are up 12% so far in 2019.

Smart choice

Rounding out our list is retail real estate company SmartCentres REIT (TSX: SRU.UN), which currently boasts a yield of 5.4%.

SmartCentres’ payout continues to be underpinned by massive scale (total assets of roughly $9.6 billion), value-oriented retail space (principally anchored by Walmart stores), and reliable cash flows. In the most recent quarter, operating cash flow clocked in at $57 million, while adjusted funds from operations (FFO) improved 2.8% to $91.8 million.

“The Trust provided strong and stable performance in the quarter, while growing our excellent development platform,” said President and CEO Peter Forde. “On the development front, we entered into a number of major agreements that will result in growth of both NAV and FFO per unit.”

SmartCentres shares are up 8% 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.

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

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