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.
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.
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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.