3 TSX Stocks With High Dividend Yields

High dividend yields are great, but not if they don’t offer share growth. That’s why I’m recommending these TSX stocks.

| More on:
Increasing yield

Image source: Getty Images

There are a huge amount of TSX stocks out there with high dividend yields that Motley Fool investors can eat up right now. The TSX today is filled with them with this bear market. However, high yields don’t necessarily mean great stocks.

In fact, you could end up losing the same amount you’re making in passive income if you choose a poor stock. All that work and patience will be for nothing. So, today, I’m going to help you identify three TSX stocks bound for gains. Furthermore, each offers substantial dividend yields.

Slate Grocery REIT

First up, Slate Grocery REIT (TSX:SGR.U) is a strong company to consider for passive income. It’s one of the TSX stocks that offers stability thanks to its real estate, which is focused on grocery store chains. These chains continue to grow across the United States as the company expands.

Long lease agreements and high occupancy rates allow this company to continuously bring in cash flow. In fact, shares are actually up 2.21% year to date at the time of writing. Yet it remains in value territory, trading at 11.7 times earnings.

Slate offers a 6.07% dividend yield among passive-income-producing TSX stocks.

Fiera Capital

Want an even higher dividend yield? Consider Fiera Capital (TSX:FSZ). It’s one of the TSX stocks in the financial sector, and even this company isn’t down all that much. In fact, it’s beating the TSX today, which is down about 10% year to date compared to Fiera, which is down just 7.8%.

Fiera invests in growth and value stocks on the TSX today, and it’s one of the TSX stocks that’s done quite well over the years. This is why it’s able to create such high passive income. It’s not in value territory, trading at 17.8 times earnings, but it’s still a great buy. That’s especially considering it’s grown 115% in the last 10 years alone!

Fiera stock has a dividend yield of 9.31% as of writing for Motley Fool investors.

Acadian Timber

Now for something down the middle, Acadian Timber (TSX:ADN) is another strong option. Lumber prices are rising, and that’s led to a short-term problem for this company — one that will eventually be resolved, as the country, and really, the continent, needs lumber — especially during a housing crisis in both Canada and the United States.

Shares of the company are down 9.4% year to date, trading at 16.5 times earnings and just one times book value. Pricing remains strong for lumber, and Acadian is likely to see this help its balance sheet, especially as demand bulks up. Meanwhile, it’s still a valuable buy during this bear market for Motley Fool investors.

Acadian Timber offers a 6.89% dividend yield to create some more stellar passive income.

Bottom line

High dividend yields aren’t everything, which is why I didn’t focus on double-digit dividend yields in this piece. It would have been relatively easy, but these are strong companies that offer sustainable growth. And that’s exactly what Motley Fool investors need from their TSX stocks today.

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 recommends FIERA CAPITAL CORP.

More on Dividend Stocks

Payday ringed on a calendar
Dividend Stocks

3 Top TSX Passive-Income Stocks That Pay Out Every Month

Here are some of the best TSX stocks for passive monthly income. Investors should explore to see if they're a…

Read more »

edit Sale sign, value, discount
Dividend Stocks

3 Remarkably Cheap TSX Stocks to Buy Right Now

These three cheap TSX stocks are some of the best buys on the TSX, and yet their share price is…

Read more »

think thought consider
Dividend Stocks

This Dividend Stock Could Create $1,353 in Passive Income in 2024

This dividend stock can create massive passive income from two sources, so don't miss out before a recovery in 2024!

Read more »

Increasing yield
Dividend Stocks

TFSA Investors: Buy This Top Bank Stock for High-Yielding Dividends

Generate a superior passive-income stream by investing in this high-yielding dividend stock from Canada’s Big Six banks.

Read more »

grow money, wealth build
Dividend Stocks

2 of the Best TSX Dividend Stocks I Plan on Holding Forever

High-yield TSX dividend stocks, such as Enbridge, offer you tasty yields and trade at significant discounts to consensus price targets.

Read more »

Family relationship with bond and care
Dividend Stocks

TFSA Investors: 3 Cheap Canadian Stocks for Retirees

These three Canadian stocks are super cheap for retirees looking for a great buy that will last the test of…

Read more »

calculate and analyze stock
Dividend Stocks

CPP Disability Benefits: Here’s How Much You Could Get

Not everybody can get CPP disability benefits. If you want some passive income, consider investing in Royal Bank of Canada…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Boosting Your Monthly Income: TSX Stocks That Deliver

Dividend investing can boost regular or active incomes, especially select TSX stocks that pay monthly dividends.

Read more »