Investors must understand fully the risk and reward trade off when parting ways with their money. Generally speaking, high return equates to high risk, while low return is associated with low risk. On the stock market, there are risks to dividend investing too. However, not all high-yield stocks are high-risk investments.
Fiera Capital (TSX: FSZ) and MCAN Mortgage Corporation (TSX: MKP) attract income investors because of their absurdly high yields. Despite the fallout from the global pandemic and current market uncertainties, both companies pay more than 8% dividends. Sylogist Ltd. (TSX: SYZ) pays an over 5% dividend, which is ridiculously high as well considering it’s a tech stock.
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Growing global presence
Fiera Capital incurred a net loss of $3.4 million in fiscal 2020 due to the fallout from the global pandemic. However, the $1.05 billion independent asset management firm reported vastly improved business last year. Net earnings reached $73.5 for fiscal 2021, while adjusted EBITDA increased 18% year over year to $247.7 million.
As of December 31, 2021, asset under management (AUM) was $188.3 billion, a 3.5% increase from the previous year. Jean-Philippe Lemay, global president and CEO of Fiera, said, “We are very pleased with these results, which reflect the execution of our strategic priorities over the last few years.”
Fiera streamlined and scaled its operations, expanded the offering of private markets investment strategies, and improved distribution capabilities. The company provides customized multi-asset solutions to clients in the public and private markets. If you invest today, the share price is $10.53, while the dividend yield is an over-the-top 8.17%.
Expanding investment portfolio
MCAN endured the pandemic and uncertain economic environment in 2021. Besides the 50% increase in net income in 2021 versus 2020, the average shareholders equity increased to 16.86% from 13.31%. This $527.55 million federally regulated mortgage investment corporation generates income streams from its investments in Canadian mortgages.
The investments are in single-family residential, residential construction, non-residential construction, and commercial loans. Loans, real estate investments, and other types of securities complete the diversified portfolio. According to Karen Weaver, MCAN’s president and CEO, business continues to grow.
Management’s near-term plan is to expand its investment portfolio to include more high-yielding mortgage products and non-marketable securities. Weaver said the assets should provide shareholders with unique access to various investments in Canada’s real estate and housing markets. At $17.85 per share, MCAN pays an 8.07% dividend.
Gaining traction
Sylogist is an attractive prospect if you want exposure to the technology sector. This tech stock trades at a deep discount (-25.58% year to date), although it pays a 5.28% dividend. Also, market analysts forecast the current share price of $9.47 to climb 72% to $16.31 in 12 months.
The $227.68 million software-as-a-service (SaaS) company caters to governments, non-profit, and non-governmental organizations, educational institutions, and public compliance-driven and funded companies. It provides enterprise resource planning (ERP), constituent relationship management (CRM), fundraising, education administration, and payments solutions.
Bill Wood, Sylogist president and CEO, said investments in organic growth and scalability are gaining traction. In Q1 2022, revenue increased 32% versus Q1 2021, while recurring subscriptions and maintenance revenue grew 25% compared to the same quarter in 2021.
Extra income
Earning extra money can help you cope with rising inflation. The three high-yield dividend stocks are excellent holdings if you need to boost household income.
