Investing for Passive Income? Pick Up This Little-Known Dividend Stock

Now is a great time for investors seeking passive income. No, really! If you need fixed income, then you can look to bonds, Guaranteed Investment Certificates, and more for some solid income. Or you can consider a great dividend stock.

Today, I’m going to cover the latter: a little-known dividend stock with a super-high yield that you can pick up now for passive income. What’s more, I’ll cover why this company should rebound well during the next year and beyond.

Peyto stock

Peyto Exploration & Development (TSX: PEY) is an oil and gas company with a $1.92 billion market capitalization. It’s been a difficult time for energy stocks in oil and gas lately, yet Peyto stock has proven quite strong.

You can see that strength during its most recent earnings report, where not only did the company reduce debt during this difficult time but also increased its reserves. Peyto stock invested $482 million in capital in organic activities for full-year 2022, with a $42 million investment in a new plant, but excluded $48 million in acquisitions for future opportunities.

But there’s something else I think investors should pay attention to for Peyto stock. The company has proven to be one of the lowest producers of greenhouse gas emissions in natural gas production. It’s focused on reducing methane emissions, which are down by 75% from 2016 levels, and has shifted to zero-emission pumps and converting its chemical pumps to solar-powered unit.

Granted, it’s still an oil and gas producer. However, this could give a clue as to the “future opportunities” the company has acquired in the last little while. That is why the dividend stock could be major opportunity.

And it’s so cheap!

The best part about this dividend stock? You get high yields for high value. Peyto stock currently offers an insanely high 11.85% dividend yield as of writing! This comes to $1.32 per share annually. It also trades at just 5.53 times earnings as of writing, putting it well within value territory.

Peyto stock is still up by 16.5% in the last year; however, there has been movement in the last year. Peyto stock bottomed out in October, along with practically every other company out there. It then climbed to November, but in the last three months is down by 22%. This comes from poor earnings and an uncertain year for oil and gas companies.

But don’t let macro issues keep you from Peyto stock and bringing in passive income this high. The dividend stock is likely to reach 52-week highs at $17 once more. Meanwhile, you can bring in dramatically high dividends. How high? Let’s compare today’s share price to those highs from a $10,000 investment.

Bottom line

As you can see, this undervalued dividend that seems to be destined for 52-week highs provides a huge difference in passive income right now. You can bring in $423 more in passive income each year by investing today and see your shares create huge returns in the next year and beyond.