3 TSX Stocks With High Dividend Yields

Investors looking to create a passive-income stream can purchase shares of TSX giants such as Keyera that have tasty dividend yields.

| More on:
Increasing yield

Image source: Getty Images

Stock markets have struggled in the first half of 2022 and are expected to continue to remain volatile over the next 12 months. Growth stocks are no longer in demand after dropping like flies on a hot day. Investors are hunting for safe stocks in a world that is one moment away from panic. Below are three fundamentally strong stocks that offer the safety of regular dividends in a volatile market.

IGM Financial

IGM Financial (TSX:IGM)  is one of the largest wealth and asset management firms in the country with around $268.3 billion in assets under management at the end of May 2022. It is also one of the best dividend payers on the TSX with a forward yield of 6.4%.

The company’s net earnings have been steadily moving higher from $776.17 million in 2018 to $979 million in 2021. It reported record earnings per share (EPS) of $4.05 for 2021, up from $3.21 in 2020. Its EPS in Q1 stood at $0.91, which is a record first-quarter high for the company. 

IGM stock has lost almost 24% in 2022 after gaining over 32% in 2021. The stock is currently trading at $35.37 and the average target price for the stock is $46.43, which indicates a potential upside of over 31%. 

Dream Industrial REIT 

Dream Industrial REIT (TSX:DIR.UN) is one of the most uncomplicated stocks to invest in if you want to earn regular dividends. This real estate investment trust holds industrial properties in key regions around Canada and the U.S. Industrial properties require minimal maintenance, which helps keep costs down.

Last quarter, Dream Industrial REIT saw a net rental income of $65.3 million, up 40% from the corresponding quarter in 2021. As e-commerce continues to grow in North America, Dream REIT’s properties will continue to be in demand. 

The stock has a solid dividend yield of 5.86%. It closed trading at $12.06 and the average target price for the stock is $18.11, which is a potential upside of over 50%. Few analysts expect the stock to even double in the next year. 

Keyera

Keyera (TSX:KEY)) is one of the largest midstream players in Canada, operating over 4,000 km of pipelines. The company has major projects in progress that can boost its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) by 6-7% every year until 2025.

In June, the stock fell by around 14% as part of a broader market correction and lower energy prices. The stock is trading at $29.98, and the average price target for the stock is $36.37, which is a potential upside of over 21%. 

When you factor in the 6.4% dividend yield, you could be sitting on decent gains by the end of 2022. However, you have to keep in mind that Keyera has a high beta of 2.32, which could mean a lot of volatility for shareholders.

An investment of $5,000 in each of these stocks will help you generate $934 in annual dividends, allowing investors to generate a predictable income stream amid the ongoing volatility. 

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends DREAM INDUSTRIAL REIT and KEYERA CORP.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »