When it comes to creating a dependable passive-income stream, you can’t do better than Dividend Aristocrats. It’s an investment that will ensure consistent payouts, or a chance to re-invest and grow your wealth if you so choose. Dividend Aristocrats are usually the companies you can buy and forget. With any luck, you might also find your capital gains increasing considerably over the years.
Pembina Pipeline, SmartCentres REIT, and Capital Power are three such stocks. They each have a dividend yield high enough to get you a sum of over $250 a month if you choose to pour your whole TFSA of $63,500 in any one of them.
A 65-year-old pipeline company
Pembina primarily operates in western Canada. It’s a midstream service provider and has a significant network of pipelines for the transportation of natural gas and hydrocarbon liquids.
Pembina is currently trading at $46.7 per share. If we take a look at the company’s growth, in the past five years, Pembina has increased its market value by almost 20%. Even at a conservative estimate, it’s 4% growth per year.
Pembina has a stellar dividend history as well, increasing its payouts for nine consecutive years. Currently, the company offers a yield of 5.14%. The company is very stable, with a beta of 1.09, and a price-to-book of just 1.94 might indicate good value.
A smart REIT
SmartCentres REIT is carrying out brisk and smart business in the real estate sector. The company has over 150 locations in various regions of the country. The company’s chief tenant is Walmart, with 115 locations to its name.
Thanks to a stable business model and reliable tenants, SmartCentres REIT has been diligent in rewarding its investors. The company has increased dividends for six consecutive years and is currently offering a juicy yield of 5.8%. If you have a $100,000 to invest, that translates to a monthly payout of $483.
The company’s growth has been relatively slow, just 8.5% in the past five years. But the company is standing on strong fundamentals and an amazing balance sheet for a REIT.
An independent power-generation company
Capital Power is a power-generation company, focusing on a greener approach. The company has a balanced portfolio of gas-powered power generation and renewable energy. The company is operating 25 facilities in Canada and in the U.S., delivering almost 6,000 MW and working on another 900.
The market value of the company at the time of writing this is $33.1 per share. This represents a 22% growth in the last five years. Capital Power also takes the cake in terms of the yield — a decent 5.82%. The company has increased its dividends for five consecutive years.
Dividend Aristocrats are usually buy-and-forget investments. If you have a TFSA, you have a fantastic chance to grow your wealth steadily with any one of the three dividend studs on the list. The companies also offer excellent balance for your investment portfolio, if it is leaning too much on growth stocks.
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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.