3 Dividend Stocks With Yields Higher Than Inflation

These dividend stocks have yields so high, you won’t even need to worry about inflation any more on the TSX today.

| More on:

Inflation has been horrible for Canadians, and it doesn’t seem to be slowing down. After hoping there would be some slowing in June, Canadians instead learned inflation rose 8.1%. Luckily, you can use dividend stocks to combat rising prices.

That means, however, finding dividend stocks that have a yield either equal to, or higher than, inflation. But don’t worry, I’ve got you covered with these three stocks.

Fiera Capital

Fiera Capital (TSX:FSZ) currently holds a dividend yield of a whopping 9.43%. The financial institution has made a name for itself by being one of the dividend stocks with the highest yield, while also growing from its smart investments.

Shares of Fiera are down 8.5% year-to-date, which is less than the decline in the TSX today of about 9.5%. Over the last decade, Fiera shares have climbed 118%, giving it a compound annual growth rate (CAGR) of 8.1%.

Finally, it’s one of the dividend stocks that’s boasted a CAGR of 10.4% in its dividend over the last decade! So a $5,000 investment would certainly help you fight inflation, bringing in passive income of $467 per year.

Chemtrade

Chemtrade Logistics Income Fund (TSX:CHE.UN) is another strong option with a dividend yield of 7.28%. Not as high as Fiera’s, but it offers more growth. It’s a cyclical stock that tends to do well when the market does poorly, so it provides you with returns when other dividend stocks may not.

Shares of Chemtrade are up 19% year-to-date, and 18% in the last decade. That’s a CAGR of just 1.67%. So as you can see, the stock price stays pretty steady when you hold it. However, you can still buy it on the TSX today for its superb dividend yield.

That dividend has remained unchanged over the last few years, so this company is nothing if not consistent. Even still, it’s a high yield that would turn a $5,000 investment into $354 in annual passive income.

Slate Grocery

Finally, Slate Grocery REIT (TSX:SGR.UN) is a great mix of both when it comes to fighting inflation with dividend stocks. The United States-anchored grocery-chain owner currently has a dividend yield of 7.54% on the TSX. Further, the company has been doing well since it’s in the essential service industry.

Shares of Slate are up about 6% year-to-date. It doesn’t have as much history as the others, but in the last five years alone shares have grown 70%. That’s a CAGR of 11.2%.

Then there’s the dividend for this real estate investment trust. It’s only grown at a CAGR of 0.44%, but the yield is still quite high. An investment of $5,000 would deliver $378 in annual passive income among your dividend stocks.

Foolish takeaway

Inflation sucks, but dividend stocks can help. While these may be shorter-term holds than I would usually recommend, they’re fantastic to have while you need the income and adjust to inflation. Then afterwards, you can take your earnings and put it towards long-term companies that will continue to bring you wealth.

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

dividends grow over time
Dividend Stocks

Where I’d Put $8,000 in Canadian Value Stocks for Dividend Income Potential

This TSX value ETF also provides above-average dividends, but there are better options if you look closely.

Read more »

concept of real estate evaluation
Dividend Stocks

1 Undervalued TSX Stock Down 34% to Buy as Housing Costs Surge

Don't let the share price get you down. This undervalued TSX stock could certainly be due for a comeback.

Read more »

A plant grows from coins.
Dividend Stocks

2 High-Yield Dividend Stocks for TFSA Investors

These stocks look cheap today and pay attractive dividends.

Read more »

dividends can compound over time
Dividend Stocks

3 Canadian Dividend Stocks Built to Survive a U.S.-Canada Trade War

If you're looking for dividend stocks that will remain strong no matter the global situation, these look top notch.

Read more »

coins jump into piggy bank
Dividend Stocks

Got $5,000 to Invest? Why I’d Consider 3 Financial Stocks for My Permanent Portfolio

Brookfield Corp (TSX:BN) is a top tier financial stock.

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

3 Reliable Canadian Dividend Stocks for Dependable Income in 2025

These Canadian dividend stocks have solid operations and pay reliable dividends, making them three of the best investments to buy…

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

Unlock Financial Freedom: How to Maximize Your TFSA for a Stress-Free Retirement

The TFSA isn’t just a savings account – it’s a tax-sheltered investment vehicle with the potential to supercharge your retirement.

Read more »

rail train
Dividend Stocks

Canadian National Railway: Buy, Sell, or Hold in 2025?

Canadian National Railway is down more than 20% in the past year. Is CNR stock now oversold?

Read more »