3 High-Yield Passive Income Stocks Over 7% on the TSX Today

Passive income stocks don’t always mean safety, especially with high yields. Fortunately, that’s not the case for these three strong options.

| More on:
investment research

Image source: Getty Images

Passive income stocks are what every investor seems to want these days. But honestly, they’re something Motley Fool investors should want every day. That is, as long as they’re quality.

That’s because even though there are passive income stocks with high yields, it doesn’t necessarily mean they’ll be high forever. We learned that during the pandemic, with many companies slashing dividends, if not cutting them all together.

So with that in mind, here are three quality, high-yield passive income stocks that should pay out 7% yields for years.

BMO Canada High Yield ETF

The BMO Canada High Dividend Covered Call ETF (TSX:ZWC) is one of the strong passive income stocks to consider for your dividend portfolio. Having an exchange-traded fund (ETF) means you pretty much have an entire portfolio managed by professionals. Professionals with the goal of bringing in long-term returns.

In this case, those returns come in as dividends. Right now, this BMO ETF offers a yield of 7.2%! That’s dished out as $1.20 per year. Even more impressive is that the stock has seen shares climb by about 6% year to date, all while traditional growth stocks fell lower and lower. So among passive income stocks with a high yield, this is an incredibly safe, long-term option.

Fiera Capital

A lot of Motley Fool investors have likely seen Fiera Capital (TSX:FSZ) on the list of high-yield passive income stocks. The investment firm continues to prove that it can and has a track record of making solid investments. Most recently, it demonstrated this in its fourth-quarter and full-year results, with assets under management climbing 4.1% to $188.3 billion. It also reported earnings of $36.6 million compared to a $700,000 loss the year before.

During this time, Fiera managed to be one of the passive income stocks that kept paying those high dividends. It now offers a 8.32% dividend yield that investors can lock in before shares climb any higher. All while trading at a valuable 15.32 times earnings.

Harvest Healthcare ETF

Finally, Harvest Healthcare Leaders ETF (TSX:HHL) is the last on my list of 7%+ dividends. Among passive income stocks, it’s also a strong choice given its investment into the health care industry. The ETF aims to create a low volatile portfolio, with covered call options up to 33%. It therefore focuses in on larger businesses, and not emerging health care companies.

Therefore, Harvest can support a dividend of yield of 8.44% as of writing. That yield comes to $0.70 per year, supported by sustained, steady growth. That growth is certainly not high, as the company has grown just 5% in the last five years – though of course that number is higher when accounting for the pandemic crash.

Even still, this is yet another high yield dividend among passive income stocks that can create reliable income. After all, we’ve learned that share returns are certainly no guarantee.

Foolish takeaway

All three of these dividend stocks offer Motley Fool investors a strong way to take advantage of high yields, with low risk. A great start is by focusing in on ETFs, and these two offer a stable way to get in on dividend ETFs. Coupled with Fiera, investors can see their passive income portfolio continue to grow, especially as they reinvest these dividends again and again.

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 has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

investment research
Dividend Stocks

Young Investors: Create Cash Flow With This Top Dividend Stock

If you're a young investor looking for cash flow, you need a strong dividend stock and solid banking program designed…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

3 Superb Dividend Stocks I’m Ready to Buy

The market is full of great options for income-seeking investors. Here are three superb dividend stocks to buy now.

Read more »

Payday ringed on a calendar
Dividend Stocks

Gen Z Investors: Create a Stable Passive-Income Stream of $188/Month for Retirement

This passive-income stock is perfect for Gen Z investors who don't have much to invest but want to see stable,…

Read more »

exchange-traded funds
Dividend Stocks

2 ETF Bargains You Shouldn’t Miss in 2022

Index ETFs are only discounted when there is a market-wide slump, which is rarer than sector-specific dips, so you should…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

2 Real Estate Stocks to Add Growth to Your Portfolio

The right real estate investments, whether they are properties or real estate stocks, usually offer a decent mix of income…

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

2 Canadian Energy Stocks With Ridiculously Fast-Growing Dividends

Canadian energy stocks are gushing cash and there's plenty left for shareholders. Here are two stocks for ridiculously fast-growing dividends

Read more »

retirees and finances
Dividend Stocks

Retirees: 2 Top TSX Dividend Stocks to Buy for TFSA Passive Income

These industry leaders pay attractive dividends for a portfolio focused on passive income.

Read more »

Canadian stocks are rising
Dividend Stocks

2 High-Quality Real Estate Plays to Buy for High-Yielding Dividends

Take advantage of the housing market cooldown by investing in these two quality REITs.

Read more »