Yield-hungry investors should find dividend beasts such as Keyera (TSX:KEY), Fiera Capital (TSX:FSZ), and Extendicare (TSX:EXE) super attractive. These TSX stocks pay no less than a 6.5% dividend. However, you must understand the risks associated with the respective businesses before initiating positions.
Top-tier midstream energy stock
Keyera is a top-tier energy stock that offers a hefty 6.98% dividend. The $5.99 billion independent midstream energy company has been operating since 2003. In less than two decades, it’s now a significant part of Canada’s energy sector. The company is well managed and boasts a solid revenue base.
Aside from the natural gas liquids (NGL) gathering and processing, Keyera offers fractionation, storage, transportation, logistics, and marketing services. Other revenue generators are iso-octane, propane, butane, condensate, and crude oil delivered to Canadian and American customers.
Keyera’s core infrastructure is in the heart of vital producing areas like the Western Canada Sedimentary basin and Edmonton/Fort Saskatchewan energy hub. The Calgary-based company operates 18 active gas plants and awaiting completion of two more.
You can purchase this dividend beast at $27.11 per share. Current investors are up 21.3% year-to-date, which is a positive sign. Moreover, Keyera’s payouts are monthly, so your income stream is monthly too.
Massive AUM size
Fiera Capital is a $1.14 billion global independent asset management firm, although the assets under management (AUM) are worth more than $180.2 billion. The massive size of its AUM makes it one of Canada’s largest investment managers. At $11.01 per share, the dividend offer is a juicy 7.82%. A $6,000 Tax-Free Savings Account (TFSA) contribution earns $469.20 in tax-free income.
The firm provides customized multi-asset solutions across traditional and alternative asset classes. Fiera caters to retail, institutional, and private wealth clients in North America, Europe, and selected Asian markets. Management’s goal is to be the leader in investment-management science and create sustainable wealth for clients.
Fiera reported impressive financial results in the nine months ended September 30, 2020. The top and bottom lines grew by 13% and 12% versus the same period in 2019, notwithstanding the global pandemic. If you want to wait for the full-year 2020 financial results before investing, it will come out on March 18, 2021.
Extendicare is a well-known player in the senior space. The $657.21 million company offers long-term care (LTC), retirement living, and home health care services. Its services include occupational, physical, and speech therapies, nursing care, occupational, and assistance with daily activities. Management and consulting services to third-party owners are available too.
In the 2020 pandemic year (year ended December 31, 2020), Extendicare reported revenue growth of 7.1% versus 2019, primarily due to an $88.3 million COVID funding. Earnings from continuing operations went up 53% to $42,6 million due to the Canada Emergency Wage Subsidy (CEWS).
Thus far, in 2021, the year-to-date gain is 12%. The healthcare stock trades at $7.34 per share and pays a lucrative 6.7% dividend. Extendicare can endure the ongoing health crisis as its LTCs are government-funded. The immediate threat is the return to lockdowns. However, occupancy levels should return to normal after the vaccination campaign.
Boost your regular income
Keyera, Fiera, and Extendicare are excellent passive income sources. Likewise, all three are eligible investments in tax-sheltered or tax-advantaged accounts like the Registered Retirement Savings Plan (RRSP) and TFSA. You can boost your regular and have more financial cushion in 2021.
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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. The Motley Fool recommends KEYERA CORP.