Many investors usually focus on earning extra, if not recurring, income during inflationary periods. The best tools right now if you have the same objective are dividend stocks. Fiera Capital (TSX: FSZ) and Rogers Sugar (TSX: RSI) are not the usual anchor stocks, but income seekers would pick them for the high yields.
Besides spending less than $20 per share combined, the average dividend yield is a hefty 7.13%. The independent asset management firm pays 8.04%, while the consumer staple stock yields 6.22%.
Both stocks are also eligible investments in a Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). A $25,000 position in each will produce a total of $891.25 passive income every quarter. Thus far, in 2021, the two stocks have identical gains of a little over 8%.
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$180 billion AUM
Fiera Capital specializes in customized and multi-asset solutions (public and private market asset classes). The client base of this $1.11 billion company consists of institutional and private wealth clients plus financial intermediaries. Its reach is North America, Europe, and selected Asian markets. As of September 30, 2021, the assets under management (AUM) are around $180.8 billion.
Despite the uncertain economic environment, management said Fiera Capital achieved multiple successes in the last three quarters. First up is the 1.7% revenue growth versus Q3 2020. Secondly, its adjusted net earnings grew 20.1% year-over-year. Last was the 2.4% increase in dividend payments.
According to Lucas Pontillo, Fiera’s Executive Vice-President and Global CFO, the increase is effective or payable this month. He adds that the dividend increase in 2021 is also the first time in two years (2019 and 2020).
Among the many improvements within Fiera during the period was introducing and implementing a global operating model for stronger strategic alignment purposes. Also, management continues to enhance its investment platform, particularly in public markets. On the private market side, capital deployment skews toward high-quality assets. The AUM in the latter topped $15.0 billion after three quarters.
Great financial shape
Rogers Sugar needs no introduction as it’s the leading sugar and maple producer in the country. The consumer staple stock is a generous income provider. You get value for money at only $5.79 per share while feasting on the 6.22% dividend yield.
The $600.34 million company is in great financial shape in fiscal 2021. Rogers Sugar reported 3.8% and 34.2% growth in revenue and net earnings versus fiscal 2020. According to its President and CEO, Mike Walton, the company met its volume targets for sugar and maple in Q4 fiscal 2021. He also notes the improved overall sales margins in both.
With the strong demand for sugar and maple and the return to normal operating conditions, Walton anticipates the two business segments to deliver improved performance in fiscal 2022. Similarly, the company can revert to a more traditional and profitable sales mix. Once it happens, it will enable Rogers Sugar to create value for its shareholders continually.
Counter inflation now
Don’t wait for inflation to diminish your purchasing power. Counter or mitigate the risk by loading up on high-yield assets like Fiera Capital and Rogers Sugar. They aren’t TSX high-flyers but are excellent dividend plays for yield-thirsty investors.
