Investors continue to flock towards fixed income these days, as the markets perform poorly. Yet, it’s important to remember that a long-term investment strategy is usually the most lucrative. With that in mind, today I’m going to cover three dividend stocks that offer incredibly high dividend yields, but are also a great option to hold for years to come.
Fiera Capital
First off, Fiera Capital (TSX: FSZ) definitely falls into the high-yield category. Fiera stock currently offers a yield of 10.34% as of writing! But that of course comes with the caveat that shares are down by 12.4% year to date.
But look at it this way. The company has a solid track record of performance and a strong balance sheet. So now you’re able to pick up FSZ stock among other dividend stocks for a steal. Indeed, considering it trades at just 15.3 times earnings as of writing.
So while Fiera stock does invest in growth and value stocks, and many look to more conservative options, holding this stock from now until next year could bring in astounding passive income through dividends, as well as growth in shares to pre-fall prices.
NorthWest
A company that hasn’t dropped nearly as much but still offers a substantial yield among dividend stocks is NorthWest Healthcare Properties REIT (TSX:NWH.UN). If you want cash and protection, you want to get defensive. That means going with strong, defensive options such as healthcare. And it doesn’t get much more defensive than healthcare real estate.
NorthWest continues to expand around the world, offering up every type of healthcare property in the mix. However, shares are now down an incredible 27.5% year to date. That makes it incredibly undervalued, considering it trades at just 8.1 times earnings as of writing.
And the dividend? NorthWest stock offers a substantial 8.53% yield as of writing. So again, you have significant cash flow coming in while you wait for the eventual rebound.
Slate Grocery
We also need food, which is why consumer staples are such a great option. But among those dividend stocks, I would recommend Slate Grocery REIT (TSX: SGR.UN), which currently holds a dividend yield at 7.77%. And I have great news. Shares are actually up 12% year to date.
Actually, that may not be great news if you’re looking for a steal in terms of a share drop. That being said, it still remains a steal in terms of fundamentals. Slate stock trades at just 5.5 times earnings! That’s even as it continues to expand through acquisitions across the United States with its grocery-anchored locations.
The company emerged strong from the pandemic, benefits from high inflation, and continues to support a solid occupancy rate. So among these dividend stocks, Slate may be the best option even though it holds the lowest dividend yield of the batch.
Bottom line
There really isn’t a reason that you need to sacrifice returns if you’re looking for cash flow. These dividend stocks offer fixed income now and in the future, with solid earnings to prove it. And right now, you can lock in dividend yields that may not ever be seen again! While certainly purchasing them at prices that won’t be around in another year or so.
