4 Top Canadian Dividend Stocks to Buy Under $15

These four Canadian stocks could boost your passive income given their stable cash flows and high dividend yield.

| More on:
Where to Invest?

Image source: Getty Images

A portfolio is incomplete without few high-quality dividend stocks. Given their regular payouts and stable cash flows, these companies provide stability to your portfolio. If you are ready to invest in dividend stocks, here are four under-$15 Canadian stocks to consider.

Extendicare

Through its 120 long-term care homes and retirement communities, Extendicare (TSX:EXE) serves around 83,500 senior citizens across Canada. The company has delivered impressive returns of 45.1% over the last 12 months. Despite the substantial rise, the company still trades at an attractive valuation, with its forward price-to-sales multiple standing at 0.6.

Besides, Extendicare had reported an improved second-quarter performance last month, with the occupancy rate of long-term care homes and the average daily volumes of the home health care increasing by 2.5% and 3.7%, respectively. Further, the company is constructing nine new long-term care centres at the cost of $500 million amid rising demand for its services. So, given its improving financials and healthy growth prospects, I believe its dividends are safe. The company currently pays a monthly dividend of $0.04 per share, with its forward yield at 6.24%.

Roger Sugar

Second on my list would be Rogers Sugar (TSX:RSI), which produces and markets sugar and maple syrup. After a tough 2020, the company’s financials are improving this fiscal year. In the first three quarters of fiscal 2021, the company’s revenue and adjusted EPS increased by 5.9% and 15%, respectively. Higher sugar volumes and favourable pricing drove the company’s financials. However, maple syrup sales had declined due to the tough year-over-year comparison amid pantry-loading in the early stage of the pandemic.

Meanwhile, the increased sugar production and improving demand for maple syrup could drive its financials in the coming quarters. The company could also benefit from the continued anti-dumping and countervailing duties on sugar imported from the United States, the United Kingdom, and the European Union. So, the company is well-equipped to continue paying dividends at a healthier rate. Currently, it pays a quarterly dividend of $0.09 per share, with its forward yield standing at an impressive 6.42%.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) could also be an excellent buy for income-seeking investors, given its high-dividend yield and stable cash flows due to its highly franchised business model. Last month, the company raised its monthly dividends by 9% to $0.6 per share, with its forward yield currently standing at 6.22%.

The raising of dividends shows the management’s confidence in its future cash flows. With the easing of restrictions, Pizza Pizza has now reopened its dining space and non-traditional restaurants. The improvement in economic activities and continued sales growth from its digital channels could drive its financials in the coming quarters. So, its growth prospects look healthy.

NorthWest Healthcare

My final pick would be NorthWest Healthcare Properties REIT (TSX:NWH.UN), which pays a monthly dividend of $0.0667 per share, with its forward yield standing at 6%. Thanks to its highly defensive and diversified healthcare portfolio, the company enjoys high occupancy and collection rate. The government-backed tenants, inflation-indexed rent, and long-term agreements provide stability to its earnings and cash flows.

Meanwhile, NorthWest Healthcare is also working on acquiring Australian Unity Healthcare Property, which owns a portfolio of 62 healthcare properties with an occupancy rate of 98%. Also, NorthWest has around $350 million projects in the construction or approval stage. As well, it recently strengthened its financial position by raising about $200 million.

So, given its healthy growth prospects, stable cash flows, and high dividend yield, NorthWest could be a good buy in this volatile environment.

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.

The Motley Fool owns shares of and recommends PIZZA PIZZA ROYALTY CORP. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

Canadian Dollars
Dividend Stocks

How I’d invest $1,000 in December to Make Easy Passive Income

These BMO covered call ETFs are great for generating passive income.

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Advisor Commentary: Should You Buy Algonquin Power Stock? [PREMIUM]

Declines of this magnitude aren’t generally found in utility-land, and it behooves us to have a peek.

Read more »

TFSA and coins
Dividend Stocks

TFSA: 3 Buy-and-Hold Dividend Stocks With Massive Long-Term Potential

These dividend stocks could more than double your TFSA, all from reinvesting solid passive income for years to come.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

These 4 Canadian Dividend Stocks Are a Retiree’s Best Friend

Dividend stocks are a retiree's best friend. But what about during a recession? Buy these four dividend stocks for solid…

Read more »

top TSX stocks to buy
Dividend Stocks

3 High-Yield Dividend Stocks to Earn a Truckload of Passive Income in 2023

High-yield dividend stocks such as Keyera and Fiera Capital are well poised to deliver consistent returns to shareholders in 2023.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

Retirees: Supplement CPP With 3 Stocks That Pay You Every Month

Equity investors can supplement CPP payouts by creating a portfolio of monthly paying dividend stocks such as Savaria.

Read more »

Profit dial turned up to maximum
Dividend Stocks

Beat the Market With 2 Growing Companies

Dividend-paying TSX stocks such as Restaurant Brands International and Brookfield Asset Management are top long-term bets.

Read more »

Electricity high voltage pole and sky
Dividend Stocks

Should You Buy Algonquin Stock Now or Wait?

Algonquin Power stock has a massive 9.8% dividend yield today! Is now the time to buy or should income investors…

Read more »