For $555 in Passive Income, Buy 645 Shares of This Dividend Stock

This dividend stock has a solid history of dividend growth, while retaining a 9.91% yield right now!

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There are so many stocks out there offering dividends. But not so many of them offering dividends nearing the double-digit range. Yet it seems like once those a dividend stock hits that point, it suddenly becomes volatile.

Such is the case for Fiera Capital (TSX:FSZ), a dividend stock that doesn’t deserve such scrutiny, to be honest. Today, let’s look at why and how much passive income that investors could create by investing Fiera stock now.

First, why Fiera stock?

Let’s state the obvious, first and foremost. Fiera stock currently has a dividend yield of 9.91%. That’s an almost double-digit dividend yield that investors can lock up! And if you think this is just a fluke, let me assure you, it is not.

Fiera stock has a long history of dividend growth. In fact, it currently holds Dividend Aristocrat status. That’s given out to companies that have increased their dividend each year for 25 years or more! Right now, Fiera stock currently boasts a 9.1% dividend compound annual growth rate (CAGR) for the last 10 years alone.

As for its shares, during that time Fiera stock has increased by 121%. That’s come to a CAGR of 8.22%. Yet as of writing, the company is down by about 16.5% in the last year and trading at 15.96 times earnings. So, let’s look at why you want to consider this Dividend Aristocrat today.

A strong team

Fiera stock focuses on investing in growth and value companies. Clearly, management has figured out exactly where its money should go. Because of its incredible growth, it’s managed to continue increasing this dividend again and again.

In fact, during its last earnings report the company continued to see major growth. Assets under management increased 1% to $158.3 billion during the third quarter, with net earnings increasing almost four times from $2.3 million to $8.7 million. Despite a rough quarter in terms of revenue, the company’s organic growth moved them forward.

If Fiera stock can continue through the hard times, investors should be even happier during the good times. So, now, let’s look at how much investors could create in passive income each year and even each month.

A monthly payer

I’m going to show you how much investors would need to put aside if they hope to achieve $555 a month. Given that Fiera stock is a monthly passive-income stock, both options below are certainly something I would consider at these low rates.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTPAYOUT FREQUENCYTOTAL INVESTMENT
FSZ$8.947,744$0.86$6,660Monthly$69,231.36
FSZ$8.94645$0.86$555Monthly$5,766.30

As you can see, one investment is far more than the other. But now, let’s see what could happen if Fiera’s stock price should rebound to former 52-week highs of $10.77.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTPAYOUT FREQUENCYTOTAL INVESTMENT
FSZ$10.777,744$0.86$6,660Monthly$83,402.88
FSZ$10.77645$0.86$555Monthly$6,946.65

Now, you’ve created either $6,660 a year, or $555 a month, in passive income, but also returns of $14,171.52 for the larger investment, or $1,180.35 with the smaller option. All while still receiving significant income each month!

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. The Motley Fool has a disclosure policy.

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