Screaming Buys for the Holidays: 2 Stocks With Upsized Dividends

If you want to be prosperous next year, the Rogers Sugar stock and Capital Power are the recommended buys this December. You can realize substantial wealth by the time 2020 ends.

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Investors hoping to enhance earning potentials going into 2020 would get a big lift from two exciting investment prospects. The dividends of Rogers Sugar (TSX:RSI) and Capital Power (TSX:CPX) just got juicier. You can enhance your portfolio this year-end with a combination of reliable dividend superstars.

Portfolio sweetener

Rogers Sugar has been in the radar of investors for some time because aside from being low-priced, the stock is an excellent income vehicle. With the company raising its dividends to 7.45%, you have a certified portfolio sweetener.

If you buy $10,000 worth of RSI at $4.65 per share today, you can sweeten your pot with a $745 yearly passive income. Growing your TFSA balance would be faster. Also, it will take less than 10 years to double your retirement savings.

Since its establishment in 1997, Rogers Sugar has grown its sugar-producing operations. Aside from refining, packaging, and marketing sugar, the company sells maple syrup and related products that have higher margins.

The top and bottom lines haven’t been spectacular of late, but it’s consistent and stable. Sugar is a consumer staple and need of consumers as well as industrial consumers so you can expect the business to be profitable for years. Likewise, the company is well entrenched in the industry.


Capital Power has become more attractive to income seekers with the dividend entering the higher territory. Its 5.87% yield can significantly boost money growth. A $21,000 investment can already produce a $100 monthly passive income.

The electric utility industry in Canada is one of the most stable industries. Capital Power has been operating for 128 years and is considered an industry pillar. Its power generation facilities are stationed in Canada and the U.S.

In response to the clamor to reduce emissions, Capital Power is focusing more on green energy, although its legacy is in coal-powered plants. As it’s a regulated industry, the company collects stable, increasing cash flows. The business model also makes Capital Power a growth-oriented company.

The business outlook is very bright. As of the quarter ending September 20, 2019, net cash flows have reached $209 million, with a corresponding $225 million in adjusted funds from operations.

It was a record cash flow in the quarter.  Capital Power is a no-frills investment with the power to deliver growing passive income in 2020.

Screaming buys

Both Rogers Sugar and Capital Power are suitable single stock investments. The businesses are stable and enduring.

Rogers Sugar belongs to a recession-proof industry where demand for sugar is steady even during economic downturns. Capital Power is recession-proof as well and a future-focused electric utility company with plenty of growth opportunities.

The individual strengths of the companies are given. Collectively, however, these high-yield dividend stocks will provide you with an opportunity to turn lethargic returns into massive gains.

Rogers Sugar and Capital Power are screaming buys. By investing in both, you have an uncomplicated and smart way of creating passive income. You can start 2020 with a pair of solid investments and end the year with a considerable amount of wealth.

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 Christopher Liew has no position in any of the stocks mentioned.

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