TFSA Investors: 3 Dividend Stocks Bound for a Boost

If you want dividend stocks that could be hiking their yields in the very near future, these three offer the best opportunity for your TFSA!

| More on:
TFSA and coins

Image source: Getty Images

The Tax-Free Savings Account (TFSA) is a solid way to create wealth. One of the easiest ways to do this is by investing in dividend stocks. Dividend stocks provide passive income both through returns and through quarterly or even monthly dividends. And in your TFSA, all that cash can be taken out tax-free whenever you need it!

But what’s even better is that analysts believe 2022 could be the year of dividend stocks. After all that growth in shares, it was a pretty boring time for dividend increases. That came from the pandemic and market crash putting a halt to dividend hikes. But that’s about to change.

So without further ado, here are three of the top dividend stocks bound for a boost.


Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is set to announce its earnings on December 2, 2021. Yes, that’s tomorrow at the time this article is published. But even if you’re reading this a week later, CIBC stock is one of the best dividend stocks to consider for a dividend hike.

CIBC stock already has the highest dividend of the Big Six Banks. At writing, that dividend yield sits at 4.01%. Some of its peers have already come out with dividend hikes as well, jumping in the double digits. And what’s more, analysts believe not only will Big Six Banks like CIBC stock receive a major jump in 2022 but in 2023 as well to make up for the slump.

CIBC stock is one of the dividend stocks that remain strong even during the pandemic. Inflation rising is good for the company, and of course the growth in the economy. So investors looking for solid, stable income would do well to consider this bank.


Cenovus Energy (TSX:CVE)(NYSE:CVE) has insiders buying up the company again and again, yet it remains undervalued. Even in the face of rising oil prices, Cenovus stock remains a diamond in the rough. This comes from its merger with Husky that’s brought about over $1 billion in synergies this year alone.

Yet it hasn’t been that impressive among dividend stocks. The company currently has a dividend yield of just 0.88%. However, all this growth will certainly lead to a dividend boost in no time. As mentioned, the rise in oil price and production has analysts believing energy dividend stocks will boost their yield in the new year. And that includes Cenovus.

As insiders buy the stock in bulk, shares continue to climb, more than double where it was at the beginning of 2021. As some of its peers continue to hike dividends, Motley Fool investors see a major jump as soon as the next quarter.


Then there’s one of the more obvious places where we’ll see dividend hikes, and that’s in real estate. In fact, in a post-pandemic world, retirement homes like Chartwell Retirement Residences (TSX:CSH.UN) could very well see a major dividend hike in the new year.

Analysts believe that among real estate companies, Chartwell should outperform the sector in 2021. Occupancy recovery was underway during the last quarter, with cash on hand as it continues to push through the pandemic. Even amongst the hardship, Chartwell managed to continue paying its dividend, currently at 5.37%.

But this remains a short-term problem that long-term investors can consider as an opportunity. It’s already underway, according to analysts, with retirement occupancy remaining stable at 76.6%. The next step to stability is a recovery in 2022, and that’s likely to see a dividend hike as well. As the market grows, Chartwell should grow as much as 5% next year. That would see a significant increase in revenue as well as its dividend.

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 Amy Legate-Wolfe owns shares of CANADIAN IMPERIAL BANK OF COMMERCE. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

investment research
Dividend Stocks

Better Buy: Scotiabank or TD Bank Stock?

Take a closer look at Scotiabank and TD Bank stock to determine which might be the better addition to your…

Read more »

retirees and finances
Dividend Stocks

How to Retire in a Bearish Market

Are you looking to retire this year but are skeptical because of the bearish market? Here is a way to…

Read more »

Target. Stand out from the crowd
Dividend Stocks

TFSA Investors: 2 Stocks to Buy if the Market Drops Even More

We still aren't in a recession, so we still haven't seen a market bottom. If these stocks drop even more,…

Read more »

Woman has an idea
Dividend Stocks

2 Dirt-Cheap Dividend Shares I’d Buy for Long-Term Passive Income

Dirt-cheap dividend stocks should be evaluated more thoroughly than their more stable counterparts for long-term dividend sustainability.

Read more »

stock research, analyze data
Dividend Stocks

3 Oversold Dividend Stocks (With a 7% Yield) I’d Buy Right Now

TSX dividend stocks such as Enbridge and TC Energy offer investors dividend yields of more than 7% in 2023.

Read more »

Dividend Stocks

Is it Time to Buy More of Royal Bank of Canada Stock?

With bank stocks down after the fall of three U.S. banks, it might be time to load up on Royal…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Passive Income Portfolio: 4 Dividend Stocks to Get Started

These dividend stocks offer some of the best and most stable passive income out there if you want to get…

Read more »

Dividend Stocks

TFSA Investors: 3 Oversold Stocks That Should Be On Your Radar Right Now

Consider these three oversold stocks if you want undervalued stocks for your self-directed TFSA portfolio.

Read more »