3 Epic TSX Stocks That Yield up to 6.66%

Many epic TSX stocks are flying under the radar. Gibson Energy stock, Atrium Mortgage Investment stock, and Extendicare stock are hidden gems for yield-hungry investors.

| More on:
Increasing yield

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The TSX has plenty epic stocks for yield-hungry investors. Some names are flying under the radar and are not as popular as others. But if you’re looking for great sources of passive income in 2021, three companies with an established presence in their respective sectors stand out.

A key player in energy infrastructure

The name Gibson Energy (TSX:GEI) may be unfamiliar to many. However, investors in the oil and gas midstream industry know the energy stock to be a generous dividend payer. This $3.05 billion company pays a super-high 6.66% dividend. The current share price of $21.01 should be a good entry point.

Gibson has been around since 1950 and is now a leading oil-focused infrastructure company. It owns and operates over 500 kilometres of crude pipelines. The Gibson Hardisty Terminal is a crucial piece of energy infrastructure in Western Canada.

The independent storage facility is the largest in the region, with nearly 14 million barrels capacity. It transports about 25% of total barrels produced and exported from Canada’s most important heavy crude oil hub. Last year was challenging for Gibson, yet its infrastructure segment reported a 19% increase in profit for the entire year over 2019.

Premier non-bank lender

Atrium Mortgage Investment (TSX:AI) is two decades old in 2021. The $574.68 million firm is in the business of providing financing solutions to real estate communities. The concentration of lending activities are in Alberta, British Columbia, and Ontario. It operates in major urban centres, where the stability and liquidity of real estate are high.

Management takes pride in its high-quality loan portfolio. Atrium charges higher rates than banks but offers creativity, flexibility, speed, and excellent service to customers. All mortgages are secured by all types of residential, multi-residential, and commercial property.

Bridge financing, land assembly, and infill construction are the typical loans. Interest rates are between 7.75% and 10% per annum. The loan term is a straightforward, one to two years and monthly interest-only payments. If you were to invest today, the share price is $13.69 (10.12% year-to-date gain). This premier non-bank lender pays an incredible 6.57% dividend yield.

Quality health care for seniors

Extendicare (TSX:EXE), a provider of care and services for seniors in Canada, has been in existence since 1968. The $684.08 million company offers long-term-care (LTC) services, retirement living services, and home healthcare services. Income investors should find this healthcare stock an attractive investment option.

At $7.62 per share (as of April 23, 2021), the dividend yield is a hefty 6.3% dividend yield. If you were to use your $6,000 Tax-Free Savings Account contribution limit for 2021, the money could generate $378 in tax-free passive income.

Today, Extendicare is a respected market leader in providing high-quality, innovative, and patient-focused care across the country. It has 96 LTC homes in Alberta, Manitoba, Ontario, and Saskatchewan. Besides the capacity to provide 24-7 care and support to nearly 13,000 residents, Extendicare operates a chronic care unit. Despite the impact of COVID-19, revenue grew by 7.1% in 2020 versus 2019.

Hidden gems

Gibson Energy, Atrium Mortgage, and Extendicare are hidden gems. These companies are well known and recognized as providers of vital services in the industries they serve. Their common denominator is the juicy dividend.

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.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »