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 (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.