Trade the Crash: 3 High-Yield Stocks I’d Buy With $5,000

This trio of top dividend plays, including Boardwalk Real Estate Investment Trust (TSX:BEI.UN), can provide the fat income you need now.

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Hello, Fools! I’m back to highlight three high-yield dividend stocks. As a reminder, I do this because high-yield dividend stocks

  • provide a healthy income stream in both good and bad markets;
  • usually come from stable industries; and
  • tend to outperform the market over the long run.

So, if you’re looking to pounce on the recent market crash with an extra $5,000 lying around, this might be a good place to start.

Without further ado, let’s get to it.

Bankable bet

Leading off our list is financial services giant Bank of Nova Scotia (TSX:BNS)(NYSE:BNS), which currently sports a mouth-watering dividend yield of 6.5%.

While the stock has sold off sharply amid the pandemic crisis, Scotiabank’s strong fundamentals, diversified business model, and wide international footprint should continue to support healthy long-term dividend payments. Moreover, the company’s cash flows are protected by a highly regulated operating environment.

In the most recent quarter, EPS of $1.83 topped estimates by $0.08, as revenue climbed 7% to $8.14 billion. Additionally, return on equity clocked in at a solid 14.2% versus 13.5% in the year-ago period.

“We are confident in our future as the leading bank in the Americas,” said President and CEO Brian Porter. “The repositioning of the bank’s geographic footprint has simplified and focused the bank and we are positioned to deliver consistent returns and growth to our shareholders.”

Scotiabank shares are down about 25% over the past three months.

Telus something good

With a healthy dividend yield of 5.0%, telecom giant Telus (TSX:T)(NYSE:TU) is next on our list of big income stocks.

Telus has held up relatively well during this downturn, suggesting that it’s a particularly effective way to play defence. Specifically, the company’s stable subscriber growth, robust cash flows, and entrenched competitive position should underpin hefty payouts for many years to come.

In the most recent quarter, EBITDA climbed 8%, as the company’s wireless net additions came in at an impressive 130,000.

“In 2019, TELUS continued its track record of delivering strong and consistent financial and operating results in both wireless and wireline, a trend the TELUS team has demonstrated over the long-term,” said President and CEO Darren Entwistle. “Both 2019 and the fourth quarter were characterized by profitable growth, with a thoughtful balance between continuing to meaningfully grow our customer base and enhancing profitability.”

Telus shares are down about 9% over the past three months.

Under the boardwalk

Rounding out our list is Boardwalk Real Estate Investment Trust (TSX:BEI.UN), which currently offers a healthy dividend yield of 3.8%.

The stock has been hit particularly hard in recent weeks, but now might be a perfect opportunity to pounce. Specifically, Boardwalk’s solid scale (one of Canada’s largest multi-family residential real estate operators), consistently high occupancy rates, and steady cash flows should allow it to thrive over the long run.

In the most recent quarter, funds from operations (FFO) — a key cash flow metric in real estate — improved 16.7%. Moreover, occupancy clocked in at 96.2%, while revenue increased for the eighth consecutive quarter.

“Boardwalk’s commitment to providing the best product quality, service and experience has allowed the Trust to gain market share, and deliver solid revenue growth,” said Chairman and CEO Sam Kolias.

Boardwalk shares are currently down a whopping 45% over the past three months.

The bottom line

There you have it, Fools: three top high-yield stocks worth checking out.

As always, don’t view them as formal recommendations. Instead, look at them as a starting point for more research. A dividend cut (or halt) can be especially painful, so you’ll still need to do plenty of due diligence.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

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