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2 Ultra High-Yield Dividend Stocks to Stow Away in Your TFSA

Are you looking to make the most of your Tax-Free Savings Accounts (TFSA)? The TFSA is a Canadian investor’s best friend when it comes to meeting a variety of financial goals.

If you want to use the tax-sheltered status of the account to create a favorable passive income through dividends, you need to use it to store the right assets.

In order to achieve substantial passive income through dividend payouts, you need to buy shares of companies that offer high payouts. Today I’m going to discuss two dividend-paying stocks that can provide you with juicy yields for phenomenal passive income in your TFSA.

Alaris Royalty Corp. (TSX:AD) and Chemtrade Logistics Income Fund (TSX:CHE.UN) are both high-yield assets you should consider for your TFSA portfolio.

Capital market royalty

Alaris Royalty is a private equity firm that operates unconventionally. Its business model differs from typical equity firms in a few ways that render it successful.

Rather than buying out companies solely to reap benefits, Alaris allows the companies to retain operational control. Alaris offers its acquired companies the required capital in exchange for non-voting preferred shares.

The strategy is working wonders for Alaris. The company has an impressive profit margin of almost 63%, and its net income is up by nearly 10%.

As a shareholder, its 7.81% dividend yield is what makes Alaris a fantastic option to consider. The company’s shares are trading for $21.13 at the time of writing – an 8.58% increase from 12 months ago.

Chemicals galore

Chemtrade Logistics Income Fund is another remarkable stock trading on the TSX right now.

Chemtrade is a chemicals and services company that caters to the industrial sector operating primarily in continental North America, but it offers its products around the world. It has a diverse product portfolio and is the largest supplier of sulfuric acid in North America.

An $813.92 million market capitalization company, Chemtrade might not be the largest by market cap on the TSX. Still, it is one of the largest in terms of its dividend payouts. Chemtrade Logistics pays its shareholders dividends at a surprisingly high dividend yield of 13.65%.

The high payout might make you a little worried about risks with the stock, but its dividend yield is sustainable. The stock has been volatile, but it has kept its dividends stable for the past 15 years. It did not cut its payouts in the 2008 market crash, so you can rely on the stability when it comes to its payouts.

Foolish takeaway

The TFSA allows you to retain the income from assets stored in the account tax-free. With dividend-paying stocks with high yields, you can position your portfolio to earn a decent passive income.

I think it could be ideal to consider Chemtrade Logistics and Alaris for a portion of the contribution room in your TFSA.

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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends ALARIS ROYALTY CORP.

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