The COVID-19 pandemic impacted dividend payers, although not all had to slash or suspend their payouts. Dividend investing is still the less cumbersome way to grow savings, earn passive income, or increase disposable income. Pembina Pipeline (TSX:PPL)(NYSE:PBA) and Fiera Capital (TSX:FSZ), for example, are dividend titans.
Since the average yield is 7.27%, an investment of $24,800 (equally divided) could generate $150.25 in monthly passive income. Also, for long-term investors, any investment amount could double in 10 years. The two dividend stocks are hot choices, because their respective businesses have not been seriously compromised by the pandemic so far in 2021.
Pembina Pipeline’s transportation & midstream services and integrated pipeline systems are essential in the energy industry. Hence, its commercial operations should be enduring. Because of increasing natural gas liquids (NGL) and crude oil market prices in 2021, product sales revenue is steadily increasing.
The earnings in the first half of 2021 ($574 million) were slightly lower compared to the same period in 2020. However, Pembina’s total revenue spiked 36% to nearly $4 billion. While the $21.37 billion energy infrastructure company lost out in its bid to acquire Inter Pipeline, Pembina has three transformational partnerships.
Besides the partnerships, management said rising volumes, project reactivations, and $5 billion worth of development growth projects are the paths to further growth. Pembina remains committed to delivering industry-leading total shareholder returns. The energy stock’s dividend is stable and growing, as it has been for the last 21 years.
Market analysts recommend a buy rating for Pembina. The current share price is $38.86, while the dividend yield is a lucrative 6.48%. Note that payouts are monthly, not quarterly. Investors can include the investment income in their monthly budgets. Performance-wise, the year-to-date gain is 35.01%. For the last 20 years, Pembina’s total return is 630.04% (10.44% CAGR).
Over-the-top dividend yield
Fiera Capital isn’t as famous as Pembina, but it charms income investors with its over-the-top 8.06% dividend. As of September 10, 2021, you can purchase the stock for $10.42 per share (+3.7% year to date). The $1.08 billion independent asset management firm has about $179.5 billion assets under management after two quarters in 2021.
Management’s objective is to make Fiera Capital at the front and centre of investment-management science. Its presence globally is growing in a constantly evolving investment landscape. The business creates sustainable wealth for clients, whether private, institutional, or financial intermediaries.
Fiera Capital lost $14.31 million in Q2 2020 but reported $13.79 million net earnings in Q2 2021. In the first half of this year, net earnings were $36.82 million compared to the $2.29 net loss in the same period last year. The company credits the depth and diversity of its investment strategies and prudent approach to capital allocation for Fiera’s financial strength.
The transition towards a solutions-based relationship approach is ongoing. Fiera’s new client interaction model offers holistic solutions across various asset classes. However, management believes a longer duration, spread, or intensity of the pandemic could alter Fiera’s growth trajectory and profitability.
Earn now, not later
Pembina Pipeline is the TSX’s top monthly income stock. Fiera Capital pays quarterly dividends, although its high yield translates to higher income streams every month. If you need to earn an additional $150 per month, don’t delay investing in this pair of dividend titans.
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 recommends PEMBINA PIPELINE CORPORATION.