3 Cheap Stocks for Premium Passive Income

These cheap stocks not only offer strong passive income, they also have been climbing higher in the last month.

| More on:
Money growing in soil , Business success concept.

Image source: Getty Images

Premium passive income. It’s what you get when you find valuable dividend stocks with ultra-high dividend yields. What’s more, these passive income stocks have a solid future ahead for investors to consider when they purchase right now.

So today, I’m looking at three cheap stocks all offering high passive income, and all with a bright future ahead. Without further delay, let’s get down to it.

NorthWest REIT

First up we have NorthWest Healthcare Properties REIT (TSX:NWH.UN), which trades at just 8.6 times earnings. So already we are in value territory. Yet, it also comes with a super-high dividend yield at 7.9% as of writing!

This dividend has yet to increase since the company came on the market a few years ago. However, investors should note that it’s putting the money it’s making to good use. After record earnings reports, NorthWest stock is using that cash to create further opportunities, investing in healthcare properties around the world.

Shares are still down by about 21% in the last year, though they’ve improved by 5% in the last month alone. So now could be a great time to lock in a dividend yield before it climbs higher among other cheap stocks.

Slate Grocery REIT

Now if you’re not convinced about healthcare, you should certainly be convinced of passive income from a grocery store. But instead of choosing just one brand or another, I would consider Slate Grocery REIT (TSX:SGR.UN). Slate stock currently trades at a valuable 5.9 times earnings as of writing, and offers a dividend yield at 7.46%!

Again, this is a strong choice given the company’s focus on essential services. Instead of essential healthcare properties, it’s looking at essential food. It invests in grocery-anchored chains across the United States, and continues to pick up more properties quarter after quarter.

Shares are up 7% in the last month, and 15% in the last year! So, you actually get some protection from Slate stock, given that it continues to be supported even through inflation and rising interest rates.


Finally, Canadian Imperial Bank of Commerce (TSX:CM) is definitely one of the passive income buys among cheap stocks I would consider these days. It’s a Big Six Bank with provisions for loan losses helping them through this time of trouble with fewer loans coming in. This financial cushion has helped the company get through to the other side of an economic downturn before, and it will again.

CIBC stock is therefore a huge deal, trading at just 9.1 times earnings and with a dividend yield at 5.72%. And honestly, it’s probably the best deal among the Big Six Banks right now. That’s because it offers the highest dividend when considering its share price, and after a stock split last year that share price is quite low.

Shares are starting to recover a bit, with CIBC stock up over 11% in the last month alone. However, it’s again still down by about 20% in the last year. So, you can still pick it up for a major deal and see it eventually reach those pre-fall share prices once more.

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 positions in Canadian Imperial Bank Of Commerce and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

More on Dividend Stocks

grow dividends
Dividend Stocks

3 Canadian Stocks With a Real Chance of Doubling Your TFSA’s Value

Three outperforming Canadian stocks can help TFSA investors double their account balances.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

3 No-Brainer Stocks I’d Buy Right Now Without Hesitation

At any given time, the market may have certain stocks that offer a powerful combination of reliability, potential, valuation, etc.,…

Read more »

money cash dividends
Dividend Stocks

This 8.39% Dividend Stock Can Pay $100 Cash Every Month

Consider investing in this monthly dividend stock at current levels to lock in high-yielding monthly distributions to create a good…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s the Average TFSA Balance in 2024

The Bank of Montreal (TSX:BMO) says that the average TFSA balance is $41,510, far below the maximum.

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

Investors: Here’s How to Make $1,000 Each Month in Retirement

Here's how you can easily make $1,000 in monthly passive income in retirement in Canada, without taking on too much…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer TSX Stocks I’d Buy Right Now Without Hesitation

Three TSX stocks that continue to overcome massive headwinds and beat the market are no-brainer buys right now.

Read more »

calculate and analyze stock
Dividend Stocks

TFSA Investors: 2 Top TSX Dividend Stocks to Buy on a Dip and Hold Forever

These top TSX dividend stocks now offer attractive yields and big potential capital gains.

Read more »

grow money, wealth build
Dividend Stocks

1 Dividend Stock to Buy for Growth and Stay for a 5.5% Yield

This dividend stock has been rising higher, but more could certainly be on the way. Now is the time to…

Read more »