People make money on the stock market by buying low and selling high. It’s a rule of thumb, if not the classic strategy when investing in stocks. However, some investors pay more attention to dividends than price appreciation. If you’re chasing after high-yield dividend stocks to get rich, the following are five money-makers.
Global investment manager
Fiera Capital (TSX: FSZ) is tops on the list of yield-hungry investors. The $1.08 billion independent asset management firm pays an ultra-high 8.06% dividend. At $10.42 per share, a $20,000 capital will produce $1,612 in investment income.
As of June 30, 2021, Fiera has about $179.5 billion in assets under management (AUM). The company offers customized multi-asset solutions across public and private market asset classes. It caters to institutional, financial intermediary, and private wealth clients. The reach is global, from North America to Europe and key Asian markets.
Top-line royalties
Diversified Royalty (TSX: DIV) is as attractive as Fiera Capital for its 7.42% dividend. Also, the share price of $2.85 is considerably lower. Your $15,000 investment will generate $1,113 in passive income.
The $346.42 million multi-royalty company acquires top-line royalties. Currently, it has six royalty partners, all of which are well-managed multi-location businesses and franchisors in North America. Diversified owns the trademarks to AIR MILES, Mr. Lube, Mr. Mikes, Sutton, Nurse Next Door, and Oxford Learning Centres.
Natural resources company
Anglo Pacific Group (TSX:APY) acquires mining and exploration interests in Australia, North and South America, and Europe. The $504.52 million natural resources royalty and streaming company from the U.K. has been in existence since 1967.
The current share price is $2.35, while the dividend yield is a juicy 6.80%. Management’s growth strategy is to invest in high-quality projects in preferred jurisdictions with trusted counterparties. Anglo’s primary focus is on producing or near-term producing long-life assets in established natural resources jurisdictions.
Gold and copper producer
Aura Minerals (TSX: ORA) has so far displayed resiliency on the TSX. Investors enjoy a 7.73% year-to-date gain. Currently, the mining stock trades at $14.85 per share and pays a lucrative 6.77% dividend. The $1.08 billion company mines essential minerals, specifically gold and copper, in Latin America and the United States.
Last year was a challenging period for Aura. However, the business made a turnaround in the first half of 2021. Management reported a 108% increase in net revenue versus the same period in 2020. The net income for the period was US$35.5 million compared to a net loss of US$13.7 million a year ago.
Unique investment structure
Alaris Equity Partners (TSX:AD) has a unique business model and investment structure. The $837.64 million company provides long-term capital to lower middle-market companies that are leaders in their respective industries. It can also be a permanent equity partner to private companies without gaining control of management.
In Q2 2021 (quarter ended June 30, 2021), the $34.9 million revenue was Alaris’s largest quarterly revenue ever. It was also a record period of total capital deployment (more than $400 million). You can purchase Alaris at $18.63 per share to partake of the hefty 6.66% dividend.
Double your money
The average yield of the five dividend stocks is a high of 7.14%. Any investment amount will probably double in 10 years. However, before you invest, make sure your risk appetite aligns with the inherent risks in the respective businesses.
