Pandemic Relief 2022: Earn Monthly Dividends From 2 High-Yield Stocks

Canadians can produce their own, and more permanent pandemic relief every month through two high-yield TSX stocks.

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The Canada Recovery Benefit (CRB), an income support program during the pandemic, officially ended on October 24, 2021. It cost the government around $27 billion in pandemic relief to more than two million unique CRB applicants. But since temporary lockdowns are still possible, new measures are forthcoming.

Deputy Prime Minister and Finance Minister Chrystia Freeland said, “We want Canadians to know that we intend now to put in place measures that would snap into action immediately.”

Confidence in the financial markets

Trading Economics reports that the household saving rate in Canada rose to 14.2% in Q2 2021 from 13.1% in Q1 2021. The increase shows that Canadians have reduced spending, collected government benefits — and are still saving money due to the pandemic. According to the third annual retirement study by Mackenzie Investments, the overwhelming majority of working Canadians have started to save for retirement.

Moreover, the study reveals that most Canadians are confident about the financial markets. The TSX, for example, has continued its upward trend since its explosive start in 2021. You can create a more permanent financial relief through dividend investing. Among the top investment choices, today are Pembina Pipeline (TSX:PPL)(NYSE:PBA) and Extendicare (TSX:EXE). Apart from the high yield, the companies pay monthly dividends.

Visible future growth

Pembina Pipeline prides itself on being a dynamic energy transportation and midstream provider. The $23.2 billion company owns a pipeline network that customers use to transport hydrocarbon liquids and natural gas products from Western Canada. It also operates gathering and processing facilities, owns oil and natural gas liquids infrastructure, and engages in logistics.

On the stock market, Pembina’s performance is among the best. Current investors enjoy a 46.3% year-to-date gain in addition to the generous 6.05% dividend. A $20,000 capital can purchase 477 shares ($41.88 per share) and produce $100.83 in monthly passive income.

Regarding development opportunities, Pembina President and CEO Mick Dilger said the runways are extensive. Management’s ongoing concern is to create an integrated, diversified and global energy platform. The next growth driver would be the Cedar LNG (liquefied natural gas) Project.

Pembina and The Haisla Nation will develop a floating LNG facility. Cedar LNG is also Canada’s largest First Nation-owned infrastructure project. The LNG infrastructure will produce low–carbon, low-cost LNG for overseas markets.

Endured extreme challenges

Extendicare is among the cheapest, high-yield dividends stocks you can buy this month. At $7.25 per share at writing, you can partake of the 6.62% dividend. The $644.85 million company has been operating in the seniors’ home space since 1968. It offers long-term care (LTC), retirement living, and home health care services.

Because Extendicare’s LTCs skew toward government funding, it has an advantage over private LTCs. Last year was extremely challenging because of the pandemic. However, the financial performance vastly improved in the first half of 2021 compared to the same period in 2020.

Management reported 13.7%, 42.1%, and 313.1% growths in total revenues, net operating income (NOI), and net earnings. Extendicare participates in new federal and provincial programs that aim to expand the seniors’ care workforce. Employment opportunities after graduation await over 250 students currently on internship.

More permanent relief

Another temporary benefit, the Canada Worker Lockdown Benefit, will replace the CRB. You could qualify if government-imposed lockdowns directly impact your work. If not, consider investing in high-yield monthly income stocks to earn a more permanent pandemic relief.

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.

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