A $1,000 seed money is enough to purchase Canadian stocks this October and earn the highest possible returns. You can allocate the capital equally in four companies to spread out the risks. While the share prices are less than $11, the dividend yields are fantastic. Reinvest the dividends for faster churning of the funds.
Fiera Capital Corporation (TSX:FSZ), Timbercreek Financial (TSX:TF), Rogers Sugar (TSX:RSI), and Computer Modelling Group (TSX:CMG) are the top investment choices of yield-hungry investors. The dividend yield ranges from 4% to as high as 8%. An investment amount of 10X $1,000 will produce $652.30 in passive income.
Continuing global expansion
Fiera Capital trades at $10.39 per share and pays the juiciest dividend (8.08%) among the four stocks. The $1.08 billion company has been operating since 2002. It’s an independent asset management firm that provides customized multi-asset solutions to institutional and private wealth clients as well as financial intermediaries.
This investment manager caters to customers in North America, Europe, and Asia, although the ongoing concern is to expand further globally. Fiera suffered a $14.7 million net loss in the first half of 2020, but business has recovered tremendously this year. In the six months ended June 30, 2021, the company reported net earnings of $13.3 million on $167.4 million revenue. The assets under management (AUM) stand at $179.5 billion.
Ultra-conservative lending program
Timbercreek Financial is an ultra-conservative non-bank lender. The $783.65 million company is relatively young (five years old) and provides structured financing solutions to commercial real estate investors. Like Fiera Capital, this financial stock pays a mouth-watering dividend (7.14%). The share price is $9.66.
The credit program is different from the traditional in that the loan term is short — not more than five years. Timbercreek ensures inflation-protected returns by applying higher loan-to-security value and limiting its lending to income-producing commercial real estate.
A consumer staple stock like Rogers Sugar adds stability to a stock portfolio, While the sugar is a low-growth business, operations are enduring and stable. The $560.95 million holding company of Lantic is a sugar and maple producer. Rogers Sugar is a great value buy at $5.41 per share and offers a dividend yield of 6.65%.
Rogers’s financials have improved recently. After three quarters in 2021, total revenue and net earnings increased by 6% and 40% versus the same period in 2020. According to its President and CEO John Holiday, last year’s business climate was unfavourable due to lower consumer retail volume. However, Mr. Holiday expects performance in the back half of 2021 to align with pre-pandemic levels.
One-of-a-kind tech stock
Computer Modelling is the growth stock in the group. The $380.55 million company provides reservoir simulation software to clients in the oil and gas industry. Its simulation services enable customers to forecast production and optimize oil well development schemes before drilling.
The tech stock is one of one-of-a-kind because it pays dividends. At $4.74 per share, CMG pays a lucrative 4.22% dividend. With the energy sector regaining strength, Market analysts are bullish and forecast a price appreciation of 14% to $5.42 in the next 12 months.
Instant diversified portfolio
Frugal investors can form a diversified portfolio instantly with only $1,000 as the initial position. Buy shares of the four dividend stocks and then let the assets deliver capital gains and income streams.