High dividend yields shouldn’t be the only thing investors look for when seeking out TSX stocks. But you shouldn’t ignore TSX stocks if they have a high dividend yield either — especially right now!
There are a lot of strong companies offering high dividend yields at a low share price, and that’s merely due to market conditions. If you find the right ones, you can lock in high dividends while also bringing in huge returns. If that’s what you’re after, then these are the three I’d go with today.
Fiera Capital
It shouldn’t be a surprise that Fiera Capital (TSX: FSZ) is on this list. After all, it currently boasts an ultra-high dividend yield of 8.64%. But even that has come down in the last month as the market rebounds. That is what makes now such a great time to pick up the stock.
Fiera stock continues to do well, with revenue and assets under management coming down only slightly during the last year due to the market downturn. This is because the company mainly invests in growth and value stocks. So, if the market is down, so is Fiera stock.
But when it’s up, Fiera stock is up! That is why you should purchase it with your other TSX stocks and lock in this yield. The yield hasn’t been cut, even during market downturns. Shares are down 3.71% year to date and up 131% in the last decade.
Timbercreek
Another high dividend you can get from TSX stocks right now is from Timbercreek Financial (TSX: TF). It currently boasts a yield of 8.16%, with shares trading at a reasonable 17.1 times earnings. And where Fiera stock didn’t do so well during it’s latest quarter from the economic drop, Timbercreek posted strong results.
Even with all the volatility, Timbercreek posted net income and comprehensive income of $15.2 million, up from $13.6 million the year before. Furthermore, the mortgage investment company continued to expand its operations and expanded its credit facility size to $600 million from $575 million.
Yet shares remain down by 8.7%, which is below most other TSX stocks, on a year-to-date basis. That’s while still being up by 31% in the last five years. Once the economy stabilizes and mortgages start rising once more, Timbercreek could see even more growth in the near future.
Alaris
Finally, Alaris Equity Partners Income Trust (TSX: AD.UN) offers investors a dividend yield of 7.39% as of writing. And it offers huge value trading at just 5.18 times earnings. The company invests in helping companies that offer long-term growth but have a proven track record of growth behind them as well.
This is what has led Alaris stock to such strong results and high dividend among TSX stocks. During its most recent quarter, revenue increased an incredible 62% year over year, while reducing outstanding senior debt by US$77 million. It also saw its earnings before interest, taxes, depreciation, and amortization come in at $1.22 per share — an increase of 28.4% compared to 2021. It now expects a revenue run rate of $159.3 million for 2022.
Shares are down by just 3.75% year to date as of writing. In the long term, shares remain pretty stable, only up by 48% in the last decade. So, this may be the time to buy the stock during a recovery and lock in that high dividend yield with your other TSX stocks.
