The Motley Fool

Screaming Buys for the Holidays: 2 Stocks With Upsized Dividends

Image source: Getty Images

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.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.