Canadians are preparing for winter now that the pleasant weather is about to end. If you’re planning to re-balance your portfolio, you can buy BCE (TSX:BCE)(NYSE:BCE), Northland Power (TSX:NPI), and Plaza Retail (TSX:PLZ.UN). You’ll earn passive income while hibernating over the winter.
Stock for all seasons
BCE is the logical choice in the monopolistic telecom industry. This $57.95 billion company is the biggest telecom in Canada as well as the undisputed front-runner in the sector.
If you haven’t invested in BCE, this season is the best time to own the stock. You are investing not only for the winter but for all seasons to come. You’ll assure yourself with decades of passive income while safeguarding your investment.
BCE has been through the worst of winters, market volatility, and recessions. But for decades, the company has not relinquished its dominant position in the country’s telecommunications industry.
The quality of its wireless and broadband internet services is unparalleled not only in Canada but the rest of the world. BCE has been reporting impressive top-line and bottom-line results. Every year since 2015 has been a banner year.
Based on estimates, BCE could close 2019 with $23.8 billion revenue and $3.1 billion net income. Earnings can undoubtedly sustain the 4.94% dividend.
Northland is proving to be one of the stronger green stocks in a top growth industry. The stock’s gain thus far is 30.08%, and with the dividend of 4.39%, you can quickly boost your income during winter and beyond.
This $4.89 billion company develops, builds, owns, and operates sustainable energy facilities. The total operating generating capacity of the facilities, which includes hydropower, natural gas, solar, and wind is 2,429 megawatts. An additional 269 megawatts of capacity is forthcoming.
Aside from the increasing demand for green energy sources, Northland boasts of high-quality, contracted projects that should sustain income generation for years or even decades. Construction projects are underway in Taiwan and Mexico, plus a high-quality regulated utility company from Colombia was recently acquired.
In the nine months ended September 2019, all numbers are up, such as sales (+8%), adjusted EBITDA (+14%), free cash flow per share (+14%), and net income (+19%). The numbers point to a very bright future.
Plaza Retail is a superb pick if you want exposure to the real estate sector. This real estate investment trust is one of Canada’s leading retail property owners and developers. Plaza derives rental payments from a host of 277 properties consisting of enclosed shopping centres, standalone retail outlets, and open-air centres.
For $4.64 per share, you can even grow a mini-pension from the 6.06% dividend, as many retirees are doing. Your $20,000 savings can automatically deliver $101 of monthly passive income. Likewise, you protect yourself from an inflationary environment as well as an economic downturn.
Hold the stock for two decades, and your $20,000 capital will triple in value. Heading into 2020, you can shell out to increase ownership and be a lessor without having to own real estate property.
BCE, Northland Power, and Plaza Retail are your all-weather friends. With these high-yield dividend stocks, you have a diversified portfolio that will produce income regardless of the season.
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Fool contributor Christopher Liew has no position in any of the stocks mentioned.