Stock market investing is tricky, especially during volatile market conditions. And while investing in equity securities is inherently risky, market uncertainty makes it even riskier for investors seeking short-term returns. Even the top TSX stocks tend to decline in valuation during harsh economic environments.
However, investors can still generate reliable cash flows through stock market investing regardless of where the market moves. Investing in high-yielding dividend stocks can provide you with returns through shareholder dividends, keeping the cash flow going.
Market downturns might impact the share prices of the dividend stocks in your portfolio. Still, the dividend income can keep the money flowing while you wait for the markets to stabilize.
Though not all high-yielding dividend stocks can keep paying shareholder dividends during harsh economic environments. Today, I will discuss three dividend stocks you should have on your radar if you want to invest in high-yielding income-generating assets.
Enbridge
Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a $116 billion market capitalization Canadian pipeline company headquartered in Calgary. The company owns and operates an extensive pipeline network that transports crude oil, natural gas, and natural gas liquids throughout North America.
Boasting the longest pipeline network on the continent, Enbridge is responsible for transporting a major chunk of all the hydrocarbons used in North America.
As of this writing, Enbridge stock trades for $57.32 per share and boasts a juicy 6% dividend yield. It is a Canadian Dividend Aristocrat with a 27-year dividend growth streak.
It could be a good bet for passive income investors due to its ability to generate substantial cash flows through inflation-protected earnings. Enbridge also boasts a growing renewable energy portfolio that can set it up for long-term growth and profitability.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a Real Estate Investment Trust (REIT) that could be a solid investment for high-yield-seeking investors. The $3.1 billion market capitalization REIT is headquartered in Toronto. The REIT owns an extensive portfolio of healthcare properties located worldwide.
The company’s payouts are supported by a high-quality tenant base backed by government funding. The real estate portfolio boasts a 97.1% occupancy rate, and over 80% of its rents are inflation-indexed. The inflation hedge means the company’s cash flows are secured and can keep growing to keep pace with inflation. As of this writing, NorthWest Healthcare REIT trades for $13 per unit and boasts a juicy 6.18% forward annual dividend yield.
Keyera
Keyera Corp. (TSX:KEY) is a $7.2 billion market capitalization midstream oil and gas company. Headquartered in Calgary, it is one of Canada’s largest midstream energy companies.
The companynservices oil and gas producers in Western Canada, transporting various hydrocarbons throughout North America through its pipeline network. The company relies on contracted cash flows based on the volume it transports, protecting its revenue from the impact of changing crude oil prices.
Keyera stock trades for $32.49 per share and boasts a juicy 5.91% dividend yield. The company’s solid business model and commitment to maintaining debt at lower levels means it is likely to continue paying its investors their shareholder dividends. This energy company could be an excellent addition to your portfolio for high-yielding dividend income.
Foolish takeaway
A word of warning: Dividend-paying companies pay shareholder dividends by distributing a portion of their profits among investors. The company can suspend, slash, or stop distributions based on its goals and financial situation.
When searching for dividend stocks to earn a passive income, it is better to choose publicly traded companies with a track record of regularly paying investors their shareholder dividends.
Enbridge stock, NorthWest Healthcare Properties REIT, and Keyera stock are three dividend stocks you can consider adding to your portfolio for this purpose.
