While the current market can seem like a scary one, with many analysts predicting a recession sooner as opposed to later, it also offers investors some great opportunities. Now is the perfect time to re-evaluate your portfolio and look for some opportunities to pick up strong stocks on the cheap that can offer you something sweet while you wait through the recession.
That’s where high-yield dividend stocks can be a great option. There are some great stocks offering investors strong dividends with a long history of payouts and dividend increases. So, let’s take a look at three options to consider.
Royal Bank (TSX:RY)(NYSE:RY) is one of Canada’s Big Six Banks, but it’s the largest by market capitalization. The company has had strong growth for decades, but recent success has been coming from expansion into the United States coupled with its expansion into the wealth and commercial management sector.
This has led to growth while its peers have been relatively stagnant. In its most recent quarter, the bank reported net income of $3.3 billion. So, while a recession and housing crisis will certainly hurt this stock in the short term, investors looking to pick up strong stocks for the long term have a great opportunity right now with Royal Bank.
Royal Bank came out of the last recession within a year, and since then shares have grown 230%. In the meantime, the stock just increased its dividend yield to 4.29%, with an average increase of 9.5% in the last five years.
Another strong dividend stock with tons of future potential is WPT Industrial REIT (TSX:WIR.U). The company has been making waves for its focus on the e-commerce industry, where WPT offers light industrial properties to companies looking to store and ship out products. Apparently, business is booming as the company has 70 properties at the moment, but it has been acquiring even more throughout the United States.
For those looking to get in on the ground floor, it’s still a great time for this new stock. It has had stellar earnings reports, with revenue and net operating income up 28.5% and 27.6%, respectively, from the same time last year, and its occupancy rate grew to an incredible 99.4%.
As for its dividend, WPT offers a 5.46% dividend yield as of writing. Given this stock’s future potential, that dividend should increase significantly as the e-commerce industry continues to grow.
Chemtrade Logistics Income Fund (TSX:CHE.UN) has been the top dividend yield on the S&P/TSX for some time now, and right now this stock is a steal. The company handles industrial chemicals, which has proven quite successful over the years. That’s because no matter what the markets do, people will need these products. While there might be short-term swings, the company has proven that it can always rebound.
That makes today’s share price around $10.50 a bargain for this company with a dividend yield of 11.51% as of writing. While that yield is high, the company is looking to get back to higher share prices that would bring this yield out of double-digit territory. That isn’t unheard of, as the company was double the share price back in 2015, so investors may want to scoop it up before shares soar again.
Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!
That’s why The Motley Fool Canada’s analyst team has put together this FREE investor brief, including the names and tickers of 3 TSX stocks they believe are set to LOSE you money.
Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
Don’t miss out. Click here to see all three names right now.
Fool contributor Amy Legate-Wolfe owns shares of ROYAL BANK OF CANADA. Chemtrade and WPT Industrial are recommendations of Dividend Investor Canada.