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:
grow dividends

Image source: Getty Images

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 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

TFSA and coins
Dividend Stocks

TFSA Investors: How to Earn $2,500 Per Year on $40,000

Investors have an opportunity to secure high yields while reducing risk in their TFSA portfolios.

Read more »

Path to retirement
Dividend Stocks

Retirement Wealth: 2 Top Dividend Stocks for TFSA Investors

Parking a sizable portion of your savings in reliable dividend stocks is a time-tested wealth-building strategy appropriate for a wide…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Disability Benefits: Are You Eligible?

Fortis Inc (TSX:FTS) stock could provide you with passive income if you can't get CPP disability benefits.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background
Dividend Stocks

2 of the Best Canadian Dividend Stocks to Buy in September 2023

These two of the best Canadian stocks could help you receive dividend income, even in difficult economic environments.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Passive Income: 3 Amazing Stocks That Earn $1,600/Year

Are you looking how to earn $1,600 a year tax-free? These three Canadian stocks are a good bet for passive…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Great Canadian Dividend Stocks to Buy Now for High Yields

TC Energy and Bank of Nova Scotia are good examples of top TSX stocks paying attractive dividends that should continue…

Read more »

Man considering whether to sell or buy
Dividend Stocks

DND Stock: Buy, Sell, or Hold?

DND stock (TSX:DND) fell by 17% after producing earnings that once again fell below analyst estimates. But does that mean…

Read more »

question marks written reminders tickets
Dividend Stocks

SNC Stock Changes Name, But Is it Enough?

SNC (TSX:SNC) stock made it official and is breaking from the past, rebranding with a new name. But is it…

Read more »