Canadians can make money in stocks and earn $150 per month before this year is over. The TSX is on a hot streak and on course to end 2021 with a bang. Two stable, performing dividend stocks, Timbercreek Financial (TSX: TF) and Aura Minerals (TSX: ORA), should be on your radar or shopping list by now.
The combined share price is a little over $25, while the average dividend yield is 6.9%. Likewise, you can’t get a better deal than this if you want to double your investment in 10-and-a-half years.
Ultra-conservative mortgage lending
Timbercreek Financial trades at only $9.92 per share but pays an over-the-top 6.96% dividend. The $804.74 million mortgage investment company is the country’s leading non-bank lender. Management’s approach is sophisticated yet ultra-conservative.
The five-year-old Toronto-based company provides financing solutions or lends against income-producing commercial real estate properties. The average mortgage investment size is $10 million. Since 2017, Timbercreek has never in the red, as the lending program is highly structured. While the terms are flexible, the duration is fewer than five years.
According to management, the global pandemic has a negligible impact on Timbercreek’s operating metrics. About 97% of its total loan portfolio is in urban markets. Also, 87.6% is in income-producing assets. Moreover, two-thirds of the business is repeat borrowers.
Great value
Aura Minerals is among the great value buys in September 2021. The mining stock trades at $15.20 per share and offers a generous 6.84% dividend. In the last three years, the total return is 1,234.94% (136.48% CAGR). Had you invested $10,000 on September 6, 2019, your money would be worth $136,936.94 today.
The $1.1 billion company gold and copper production company develops and operates gold and base metal projects. Aura has four producing assets, namely San Ernesto/Pau-a-Pique gold mine (Brazil), San Andres gold mine (Honduras), Aranzazu copper mine (Mexico), and Gold Road Mine (Arizona, U.S.). Apart from the producing assets, Aura has four gold projects, namely Almas, Matupa, and Sao Francisco in Brazil, plus Tolda Fria in Colombia.
In the first half of 2021, Aura Minerals reported net revenue growth of 108% compared to the same period in 2020. From a net loss of US$13.7 million, the company posted US$35.5 million in net income. Notably, total production for mines at the commercial stage increased 68% to 128,218 gold equivalent ounces (GEO). In Q2 2021, Aura Minerals benefited from the significant increase in copper prices, while gold prices remained stable.
Because Aura’s properties have strong geological potential, management’s ongoing concern is to expand the life-of-mine (LOM) across all business units. For 2021, the company will increase the combined capex and exploration expenses between US$24 million and US$28 million.
Aura Minerals is confident the short- to medium-term economic environment supports commodity prices, although with continued volatility. However, based on management’s discussion and analysis, future profitability, operating cash flows, and financial position are closely related to prevailing gold and copper prices.
Minimal investment to earn extra
If the goal is to earn at least $150 in passive income every month, all you need is to invest $26,100 ($13,050 each) in Timbercreek Financial and Aura Minerals. Assuming the yields remain constant in the next 10-and-a-half years, your investment will compound to $54,374.50. You’ll get the best bang for your buck if you take positions in the financial stock and mining stock soonest.
