Passive-Income Investing: 3 Top Dividend Stocks Yielding up to 8.3%

Dividend stocks like Fiera Capital Corp. (TSX:FSZ) and Hydro One Ltd. (TSX:H) offer combination of passive income and dependability.

| More on:
A close up image of Canadian $20 Dollar bills

Image source: Getty Images

The S&P/TSX Composite Index was up 177 points in late-morning trading on January 17. North American stocks have responded well to the uncertainty that has sprouted from the Omicron COVID-19 variant. However, investors should be cautious, as the Bank of Canada and the U.S. Federal Reserve prepare to hike benchmark interest rates. This could generate volatility in the near term. In this environment, it is nice to be able to rely on passive income with a mix of high-yield and dependable dividend stocks. Today, I want to look at three of my favourite dividend stocks that fit the bill.

This investment manager offers monster passive income

Fiera Capital (TSX:FSZ) is a Montreal-based company that operates as an employee-owned investment manager. Shares of this dividend stock have dropped 9.2% year over year at the time of this writing. It has dropped 2.2% so far in 2022.

Investors can expect to see Fiera’s fourth-quarter and full-year 2021 earnings on March 16, 2022. The company unveiled its third-quarter 2021 earnings on November 11. It saw assets under management (AUM) increase $1.3 billion from June 30, 2021, to $180 billion. Meanwhile, adjusted net earnings in the year-to-date period reached $116 million — up from $96.9 million in the year-to-date period in 2020.

If you are on the hunt for passive income, Fiera should be on your short list. This dividend stock offers a quarterly distribution of $0.215, which represents a monster 8.3% yield.

Don’t sleep on this dependable dividend stock in this uncertain climate

Corby Spirit and Wine (TSX:CSW.A) is a Toronto-based company that manufactures, markets, and imports spirits and wines. Some of its top brands include Wiser’s whisky, Polar Ice Vodka, Lot 40 Canadian Whisky, and Ungava Premium Gin. This dividend stock has dropped 4.3% from the prior year. The stock is up 1.2% to start 2022.

The alcohol industry has proven very robust during the COVID-19 pandemic. Investors can rely on this to continue in 2022 and beyond. In Q3 2021, Corby saw adjusted revenue drop 9% from the prior year. This was due to supply chain delays that have impacted the company.

This dividend stock has dipped in the year-over-year period, but it does offer something for those seeking passive income. It last paid out a quarterly dividend of $0.24 per share. That represents a strong 5.6% yield.

Count on passive income with this ironclad, bulletproof dividend stock

Hydro One (TSX:H) is the third dividend stock I’d look to snatch up to start 2022. Investors can rely on Ontario’s top utility for years to come as it has delivered dividend growth in every year since its TSX debut. Shares of this dividend stock increased 18% in 2021. The stock has dropped 3.5% in the opening weeks of 2022.

In Q3 2021, Hydro One delivered earnings per share of $0.50 — up from $0.47 in the third quarter of 2020. It achieved this growth due to improved transmission and distribution rates. Hydro One stock offers a favourable price-to-earnings ratio of 19.

Passive-income investors should be attracted to Hydro One’s promising history of dividend growth. It currently offers a quarterly dividend of $0.266 per share. That represents a 3.3% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns and recommends CORBY SPIRIT AND WINE LTD CLASS A.

More on Dividend Stocks

Female friends enjoying their dessert together at a mall
Dividend Stocks

How I’d Invest $300 a Month to Target a $3,000 Yearly Passive Income

Stocks can be a good source of passive income. All you need is to regularly invest in dividend stocks and…

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

These 2 Canadian Dividend Stocks Are a Retiree’s Best Friend

These large-cap Canadian dividend stocks can supplement your income post-retirement.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

Are you looking for stocks you can buy and forget, while they keep giving you returns? Then these high dividend…

Read more »

money while you sleep
Dividend Stocks

2 “SWAN” Dividend Stocks for Passive Income (AKA “Sleep Well at Night” Stocks)

These SWAN dividend stocks are good buys today for passive income. They would be even better buys on further selloffs,…

Read more »

edit Colleagues chat over ketchup chips
Dividend Stocks

Are You 25 or Younger? Invest Just $75 Per Month for $197K by Retirement

Young investors don't need to invest a lot and don't need risky options. Just this one ETF and $75 each…

Read more »

Family relationship with bond and care
Dividend Stocks

Pensioners: 2 Cheap TSX Dividend Stocks to Buy Now for Passive Income

These top TSX dividend stocks now look oversold.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive Income: How to Make $586 Per Month Tax Free

Creating passive income of this magnitude will take time, but it will be well worth the wait!

Read more »

A golden egg in a nest
Dividend Stocks

Building Your Retirement Nest Egg? These Canadian Dividend Stocks Can Help

These top TSX dividend stocks have made some long-term investors quite rich.

Read more »