4 High-Yield TSX Stocks to Buy Ahead of Their Ex-Dividend Dates

If you have some cash lying idle, consider these high-yielding TSX stocks.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Dividend stocks are again back in the limelight amid the volatile broader markets. Slow-moving, income-generating stocks would be more valuable in these markets because of their relative safety appeal.

So, if you have some cash lying idle, consider these high-yielding TSX stocks that have their ex-dividend dates planned for the next few weeks. The ex-dividend date is a day before a record date when the company checks whether your name appears in its books to get dividends.

So, one needs to buy the stock a day prior to an ex-dividend date to receive those dividends.

Pembina Pipeline

Energy infrastructure company Pembina Pipeline (TSX:PPL)(NYSE:PBA) will pay a monthly dividend of $0.21 per share on June 15. The ex-dividend date for this payout is May 25. So, investors will receive an annual dividend of $2.52 per share in the next 12 months, implying a handsome yield of 5%.

Pembina has paid a dividend for the last 25 consecutive years. This is because the company generates stable and predictable earnings, driven by its rate-regulated, fixed-fee contracts. Also, a long dividend payment history highlights its strong balance sheet and future earnings visibility.

PPL stock has notably outperformed broader markets recently. It has gained 30% since last year, while TSX stocks have gained a mere 3%!

Suncor Energy

Canada’s oil sands leader Suncor Energy (TSX:SU)(NYSE:SU) is one of the top-yielding energy producer stocks. It will pay a quarterly dividend of $0.47 per share, indicating an annual yield of 4%. The ex-dividend date is June 2 and will be paid on June 24.

Suncor Energy increased its Q2 dividend by 12%, thanks to higher oil and gas prices. Since the pandemic, TSX energy stocks have been on a roll, and many are sitting on a significant cash pile.

Thus, if energy commodities continue to trade strong, energy investors can expect higher dividends and steeper stock appreciation.

Barrick Gold

Top gold miner Barrick Gold (TSX:ABX)(NYSE:GOLD) doubled its Q2 dividend relative to Q1 2022. It will pay US$0.20 per share on June 15 and has an ex-dividend date of May 26.

Barrick Gold stock tumbled in April after reporting weaker-than-expected first-quarter performance. Its earnings dropped on lower production, which pulled down ABX stock by nearly 20% since last month.

Gold is a classic hedge against inflation. It will also gain traction if recession rhetoric gains more steam. Thus, gold miners and investors will likely enjoy superior performance with higher earnings growth, as they did early during the pandemic.

Manulife Financial

Canada’s leading insurance and financial services stock Manulife Financial (TSX:MFC)(NYSE:MFC) has been weak since last month. It has lost 15% since mid-April due to its poor Q1 earnings.

Manulife currently yields 6% and will pay a $0.33 per share dividend on June 20. The ex-dividend date is May 24. Note that its yield looks superior because of the recent stock price decline.

Manulife is a $44 billion company that generates half of its revenue from Asia. The stock was weak recently, because of its high exposure to Asia and COVID’s disproportionate impact on the region.

MFC stock has returned 15% in the last five years and 150% in the previous 10 years. However, considering the dividends and stable return prospects, MFC looks like a decent bet for income-seeking investors.

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.

The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Fool contributor Vineet Kulkarni has no position in any of the stocks mentioned.

More on Dividend Stocks

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »

You Should Know This
Dividend Stocks

High Inflation: The Good and the Bad for Canadians

Consider tucking away some of your long-term savings in quality dividend stocks like Brookfield Infrastructure in this correction.

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

1 Oversold REIT Stock to Buy for Safe Dividends

If you're looking for stable dividend income from an oversold stock, this office REIT is a perfect option.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

3 Cheap Canadian REITs to Buy in 2022

Are you looking for passive income? Start treasure digging in cheap Canadian REITs in this market correction!

Read more »

Dividend Stocks

TFSA Passive Income: 3 Undervalued, High-Yield TSX Dividend Stocks to Buy Now

These top TSX dividend stocks with high yields now look attractive to buy for TFSA passive income.

Read more »