Canadian Investors: Boost Your Passive Income With These 3 High-Yielding Dividend Stocks

These three high-yield TSX dividend stocks can help shareholders create a passive-income stream in 2023 and beyond.

| More on:
Increasing yield

Image source: Getty Images

Most individuals want to create multiple income streams and gain financial independence faster. Over the years, investing in quality, high-yield dividend stocks has allowed investors to build wealth over time. Companies equipped with strong balance sheets typically pay dividends to shareholders. Further, these payouts typically increase each year, driving the effective dividend yields higher.

After a tumultuous phase in 2022, investors now have the opportunity to start the new year on a clean slate and create a robust portfolio of quality dividend stocks.

So, let’s see how these three TSX dividend stocks can help you create a passive-income stream in 2023.

Keyera

An energy company that pays shareholders a monthly dividend, Keyera (TSX:KEY) operates in the energy infrastructure space. It offers investors a monthly dividend of $0.16 per share, translating to a forward yield of 6%.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
Keyera$31.76472$0.16$75.52Monthly
Brookfield Infrastructure$46.70321$0.4875$156.48Quarterly
BCE Inc.$62.93238$0.92$218.96Quarterly

In the last three quarters, higher energy prices allowed Keyera to increase adjusted earnings by more than 80% year over year to $1.86 per share. Comparatively, its distributable cash flow per share rose to $2.49, indicating a payout ratio of less than 60%. Priced at 14.3 times forward earnings, Keyera stock is reasonably valued.

The company has allocated almost $1 billion towards the KAPS project, which should drive future cash flows higher. Its expanding base of cash-generating assets has enabled Keyera to increase dividends at an annual rate of 6.5% in the last 20 years.

Brookfield Infrastructure Partners

A company with a diversified business and one that enjoys significant pricing power, Brookfield Infrastructure Partners (TSX:BIP.UN) should be on the top of your shopping list in 2023. Down 18% from record highs, BIP stock yields 4.2% and has returned over 450% to investors in the last 10 years after accounting for dividends.

Priced at 11.5 times its funds from operations (FFO), Brookfield Infrastructure is quite cheap. BIP expects its FFO per share to expand by 12-15% in 2023, showcasing the resiliency of its business model. Its inflation-linked contracts enable BIP to benefit from a period of rising prices.

In the last year, the company also sold a few of its slow-growth assets and used the funds towards highly accretive acquisitions, which should expand earnings at a rapid pace in the future.

BCE

Part of the legacy telecom industry, BCE (TSX:BCE) currently has a dividend yield of 5.9%. It is among Canada’s largest telecom and internet service providers and enjoys a market share of 30%. It also has a news and entertainment vertical and is well poised to benefit from the transition toward 5G technology.

In the last 14 years, BCE has increased its dividend payouts at an annual rate of 6.4%. BCE is a blue-chip stock that has survived multiple economic cycles and continues to generate steady cash flows.

The Foolish takeaway

Investing $15,000 in each of these three stocks will help investors generate $2,412 in annual dividend income. In case the payouts increase by 7.2% each year, your dividend payout will double to $4,825 in 10 years.

Further, if these TSX dividend stocks are held in a TFSA (Tax-Free Savings Account), the payouts will be exempt from Canada Revenue Agency taxes.

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 Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Keyera. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Business people standing near houses models
Dividend Stocks

Why Canadian Apartment Properties REIT Notched a 15% Gain in January 2023

CAPREIT may not look like a deal at the outset, but long-term growth projections would disagree – especially when considering…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

1 Oversold Dividend Stock (With a 8% Yield) I’m Buying Right Now

Real estate investment trusts Northwest Healthcare offers investors a tasty dividend yield of almost 8%.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

2 Recession-Resistant Stocks to Buy for Steady Gains in 2023

Investors worried about a recession can look to buy utility stocks such as Hydro One and Waste Connections right now.

Read more »

Dial moving from 4G to 5G
Dividend Stocks

Down by 15%: Is BCE Stock a Good Investment in January 2023?

Few companies are truly “too big to fail,” but most market leaders are far more resilient against market headwinds or…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Looking for $200/Month in Alternative Income? Buy 530 Shares of This Stock

Do you want to earn $200 monthly alternative income for the next few years? Then accelerate your investments in this…

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

Deadline Coming: 3 TFSA Stocks to Buy Now Before Dividend Payouts

Invest in RNW stock and 2 other TFSA friendly names before this fast-approaching deadline to get the full 2023 dividend.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Passive Income: How to Earn Nearly $367 Per Month in Your TFSA Portfolio

Top TSX dividend stocks now trade at discounted prices for TFSA investors seeking passive income.

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks I’d Buy — But I’m Waiting for a Dip

After the recent bounce, It may be smart for investors to wait for a dip before they buy these solid…

Read more »