When asked which number is the luckiest, most people answer with seven. In the stock market, income investors are likely to develop an affinity, too, for dividend stocks that offer mind-blowing yields of as high as 7%.
Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY), Alaris Equity Partners (TSX:AD), and Nexus (TSX:NXR.UN) are three names that belong to the TSX’s group of high-yield stocks. You can increase your investment income further because the dividends are more than 7% even.
Renowned real estate company
Brookfield Property is a $20.52 billion diversified global real estate company. Its large portfolio features some of the world’s best-known commercial properties. The company’s ownerships are in office, retail, multi-family, industrial, hospitality, triple net lease, student housing and manufactured housing assets.
Management’s investment objective is to generate attractive long-term returns on equity between 12% and 15%. Brookfield Property base it on stable cash flows, asset appreciation, and annual distribution growth that aligns with earnings growth.
The real estate stock outperforms the TSX year to date (+22.31% versus +10.21%). At $22.08 per share, Brookfield Property pays a 7.6% dividend. Any amount of investment will double in 9.5 years. The latest buzz from the Brookfield family is that Brookfield Asset Management will own the rest of Brookfield Property shares it doesn’t currently own.
However, with its complete control, Brookfield Asset Management will privatize its publicly traded real estate affiliates. According to BAM’s CFO, Nick Goodman, it will allow for greater optionality in managing its portfolio of high-quality real estate assets.
Unique private equity firm
Alaris Equity Partners is a $771.93 million private equity firm based in Calgary, Canada. The company is in the business of recapitalizing lower middle-market companies in North America, up to 75% of the equity. Clients, however, must be a proven market leader and have a historical free cash flow of more than $3 million.
Unlike traditional private equity firms, Alaris will have no operating control of the business. Business owners retain control of culture, strategic vision, and operations. They also dictate the time horizon. Currently, Alaris has investments worth over $1.8 billion in more than 35 companies.
You can purchase the stock at $17.19 and partake of the generous 7.29% dividend. Performance-wise, Alaris is in positive territory, thus far, in 2021 (+16%). Over the last 12.5 years, the total return is 432.39% (14.36% compound annual growth rate). This dividend stock is ideal in a Tax-Free Savings Account (TFSA).
Nexus is a $298.29 million real estate investment trust (REIT). This real estate stock is pure dividend play given its 7.17% dividend. The share price ($8.91) is also cheaper compared to Brookfield Property and Alaris. Nexus is also displaying resiliency in 2021 with its 18.37% year-to-date gain.
This REIT owns and operates a quality portfolio of office, retail, and industrial properties in Canada. Nexus is growth-oriented and leans more toward the industrial sector. It also has a long-standing strategic relationship with RFA Capital. The latter is a Canadian-owned mortgage finance company with extensive experience in real estate.
Nexus’ competitive advantage is its robust pipeline of industrial acquisition opportunities. Expect more industrial assets with strong long-term tenants in attractive markets in the years ahead.
Scientists and mathematicians believe the number seven has some interesting properties that make it alluring. Income investors should find the three dividend stocks to their liking.
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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 owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.