The TSX has a healthy collection of amazing dividend stocks, and the variety offers Canadian investors more options. You can go for stocks that offer more sustainability compared to a high yield, or you can go for slightly risky but highly generous dividend stocks. However, there are plenty of dividend beasts on the TSX that offer both.
A senior care company
Senior care, including nursing and retirement homes, is a relatively healthy business, especially considering the rate at which the senior population of Canada is growing. This makes companies like Extendicare (TSX:EXE) amazing long-term holdings. The company offers multiple senior care services, including retirement living and home health care.
Even though Extendicare is a good pick from a capital preservation perspective, considering its performance since 2013, it’s the company’s dividends that attract most investors. It’s currently offering a juicy 6% yield. The payout ratio doesn’t inspire too much confidence as it has almost always been above a 100%, but the company hasn’t slashed its dividends once since 2014.
A commercial REIT
REITs are a no-brainer part of any comprehensive list of high-yield stocks in Canada. The commercial PRO REIT (TSX:PRV.UN) is one example of a dividend beast from this market segment. It’s currently offering a powerful 6.2% yield at a payout ratio of 85.6%.
The payout ratio has stabilized since the REIT slashed its dividends in 2020, which, while alarming, is almost a guarantee that another dividend cut might not come any time soon.
PRO REIT has a heavily industrial-leaning portfolio which is made up of about 120 properties, and the REIT boasts a decent occupancy rate. And the yield is quite attractive considering that the stock has almost recovered back to its pre-pandemic peak, and it’s not just a by-product of the slow post-pandemic growth phase.
A mortgage company
The financials sector has been on a tear since 2020, but not all stocks from the sector are following the same recovery/growth pattern. Atrium Mortgage (TSX:AI), for example, reached its recovery peak in June 2021, and since then, the stock has been sliding down at a very slow pace (about 3% depletion since then).
However, despite trading quite near its pre-pandemic peak, the stock offers a compelling 6.3% yield. The payout ratio of 91.4% is quite good, considering its payout ratio history. The mortgage company caters to residential and commercial customers and offers a wide variety of financing options that many conventional mortgage lenders (big banks) don’t.
The three dividend stocks offering you a yield of more than 6% can help you start a decent-sized passive income. You can also opt for the DRIP and grow your stake in these companies, so when you do start taking out your dividends, you get a relatively thicker payment.