2 Ultra-High-Yielding TSX Stocks to Buy With $1,000

Here are the key reasons to consider adding these two high-yielding TSX dividend stocks to your portfolio today.

| More on:
Increasing yield

Image source: Getty Images

As the macroeconomic uncertainties are keeping the Canadian stock market highly volatile in 2023, it could be a good idea for investors to add some fundamentally strong dividend stocks to their portfolios. Investing in quality dividend stocks can minimize overall risk to your portfolio and let you earn consistent passive income from their dividends.

In this article, I’ll highlight two high-yielding TSX dividend stocks you can buy today with an investment of as low as $1,000.

NorthWest Healthcare Properties stock

Northwest Healthcare Properties REIT (TSX:NWH.UN) is a healthcare-focused, open-ended real estate Investment trust (REIT) based in Toronto. It currently has a market cap of $2.2 billion, as its stock trades at $9.05 per share with nearly 8% year-to-date losses. At the current market price, NorthWest Healthcare offers a very attractive 8.8% annual dividend yield and distributes these payouts every month.

At the end of the September 2022 quarter, the REIT had a strong portfolio of 233 high-quality properties with a gross leasable area of 18.6 million square feet. While NorthWest is yet to release its full-year 2022 results, its revenue in the five years between 2016 and 2021 had 35% positive growth. During the same five-year period, its adjusted earnings jumped 231% to $1.99 per share, thanks to its expanding asset base and growing rental income with higher pricing.

The demand for healthcare properties has gone up in recent years as most countries across the world are trying to improve their healthcare infrastructure. Growing demand, higher rental income, and its expanding asset base should help NorthWest Healthcare Properties maintain a strong financial growth trend in the long term, which could drive this TSX dividend stock higher.

Keyera stock

Keyera (TSX:KEY) is another high dividend-paying TSX stock that long-term investors can consider buying today with an investment of $1,000. This Calgary-headquartered integrated energy infrastructure firm has a market cap of $6.6 billion, as its stock trades at $28.66 per share after witnessing 5% year-to-date declines. At this market price, Keyera has a 6.7% annual dividend yield. After distributing its dividend payouts every month for years, the company recently announced a move to quarterly dividend payments after the first quarter of 2023.

In the last five years, Keyera’s total revenue more than doubled from $3.4 billion in 2017 to $7.1 billion in 2022. Similarly, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) soared 67% to around $1 billion during the same five-year period, reflecting continued strength in demand for its services and its strong profitability. In these five years, Keyera also raised its dividend per share by about 16%.

If you want to minimize your risks, you should always try to pick low-leveraged businesses to invest in. For example, Keyera’s low-leveraged business, strong balance sheet, and predictable cash flows give it the ability to continue expanding its asset base by investing in strategic growth projects. That’s why you can expect its financial growth trend to improve further in the long run. Besides that, Keyera’s healthy dividend-growth track record and focus on expanding profit margin make it a great high-yield dividend stock to buy on the TSX today.

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.

The Motley Fool recommends Keyera and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

A worker uses a double monitor computer screen in an office.
Dividend Stocks

TFSA Investors: 2 Winning Buy-and-Hold Forever Stocks in April 2024

Buy-and-hold stocks are easy enough to find if you limit yourself to dividends, but there are at least a few…

Read more »

worry concern
Dividend Stocks

Telus Stock Is Down to its Pandemic Low of Below $22: How Low Can it Go?

Telus stock is down 37% in two years and is trading near its pandemic low, making investors wonder how low…

Read more »

money cash dividends
Dividend Stocks

Portfolio Payday: 3 TSX Dividend Stocks That Pay Monthly

After adding these three TSX dividend stocks to your portfolio, you can expect to receive attractive monthly income for years…

Read more »

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

REITs with modest amounts of debt, like Killam Apartment REIT (TSX:KMP.UN), can be good investments.

Read more »

Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

Some of the smartest buys investors can make with $500 today are stocks that have upside potential and pay you…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend Stocks to Buy in April for Safe Passive Income

These TSX Dividend stocks offer more than 5% yield and are reliable bets to generate worry-free passive income.

Read more »

protect, safe, trust
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $1,000

If you've only got $1,000 on hand, that's fine! Here is how to make a top-notch, passive-income portfolio that could…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Insights: The Average Benefit at Age 60 in 2024

The average CPP benefit at age 60 in average is low, but claiming early has many advantages with the right…

Read more »