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.   

More on Dividend Stocks

Printing canadian dollar bills on a print machine
Dividend Stocks

Buy This Little-Known Cash Machine for Your TFSA

Buy this lesser-known TSX real estate stock to earn attractive monthly dividends in your TFSA while benefiting from its growing…

Read more »

young people stare at smartphones
Dividend Stocks

BCE vs. Telus: Which Telecom Stock Has the Better Dividend Outlook After Q3?

BCE and Telus both cut their dividends over the past 18 months. After Q3, see which Canadian telecom stock has…

Read more »

Muscles Drawn On Black board
Dividend Stocks

Dividend Powerhouses: Top Canadian Stocks to Enhance Your Portfolio

These two Canadian dividend powerhouses offer attractive yields, encouraging earnings trends, and growth opportunities that could strengthen your portfolio over…

Read more »

A series of red ladders lead to successively higher levels
Dividend Stocks

Is Brookfield Stock a Buy, Sell, or Hold for 2027?

Is Brookfield stock a buy, sell or hold for 2027? Explore its latest earnings, insurance expansion and potential for long-term…

Read more »

Traffic jam with rows of slow cars
Dividend Stocks

1 Magnificent Canadian Stock Down 59% to Buy and Hold Forever

Boyd Group stock is down 59%, yet Q2 sales topped US$1 billion and margins hit 13.4%. See why this TSX…

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Build a Lucrative Passive-Income Portfolio With Just $35,000

You can build a rewarding passive-income portfolio with just $35,000 by investing in these two attractive TSX dividend stocks, offering…

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How Much Would You Need in a TFSA to Replace a $500 Monthly Bill?

Replacing a $500 monthly bill starts with a realistic capital target and an income plan that can grow.

Read more »

Happy golf player walks the course
Dividend Stocks

2 TSX Dividend Stocks to Consider Now for Steady Passive Income

With established business models, reliable cash flows, a strong dividend track record, and clear growth prospects, these two stocks stand…

Read more »