How Long Would it Take to Turn $150,000 Into $1 Million With TSX Dividend Stocks?

Investors can build a fortune through high-yield TSX dividend stocks, but you must accumulate enough shares and have a longer holding period to make $1 million.

People can make a fortune through the stock market, but hitting a significant amount takes time. $100,000 today earning an annual average return (including reinvestment) of 10% can grow to a million dollars in approximately 25 years.

Three high-yield TSX dividend stocks with an average dividend yield of 10.46333% can shorten the waiting period. However, you must accumulate $150,000 worth of shares now and have a higher risk tolerance. You won’t spend more than $20 per share combined to compound your money to $1,018,685.88 (including reinvestment of dividends) in 19.25 years.

Investment management science

Fiera Capital (TSX: FSZ) provides customized multi-asset solutions across public and private market asset classes. Institutional, financial intermediary and private wealth clients across North America, Europe, and key Asian markets are its customer base.

At only $7.30 per share (-13.81% year to date), the $749.27 million independent asset management firm pays an over-the-top 11.56% dividend. The prevailing macroeconomic uncertainty reflects in the financial stock’s underperformance. Management said the declines in equity and fixed-income markets in 2022 hurt the asset management industry.

In 2022, total revenues and net earnings declined 9.1% and 65.5% to $681.4 million and $25.3 million versus 2021. Notably, the asset under management (AUM) fell 15.8% year over year to $158.5 billion. Still, Fiera is preparing for three possible scenarios (deep recession, stagflation, and disinflation) and would adjust its portfolio strategy accordingly.

Temporary weakness

The energy sector continues to slump in 2023 due to falling oil prices. Cardinal Energy (TSX: CJ) is among the high-growth stocks, given its 1,267.36% return in three years. As of this writing, its year-to-date loss is 7.56% ($6.82 per share). Nevertheless, current investors enjoy a 9.96% yield after the company reinstated its dividends in 2022. The monthly dividend appears safe owing to the 49% payout ratio.

The $1.06 billion low-decline, oil-focused company operates in four core areas in Western Canada. In 2022, total revenue (petroleum and natural gas) and earnings increased 66% and 6% to $737.6 million and $302.7 million versus 2021. Notably, cash flow from operating activities soared 170% year over year to $337.3 million. 

Management said last year’s highlight was the significant reduction in net debt (down 65% to $62.6 million). The overall focus for 2023 is to improve sustainability, reduce business risk, and ensure returns to shareholders, including special dividends when appropriate.   

Solid tenant profile

True North Commercial (TSX: TNT.UN) trades at a deep discount (-47.82% year to date), but at $2.93 per share, the dividend offer is a mouth-watering 9.87%. The $277.27 million real estate investment trust (REIT) owns and operates 47 quality commercial properties in five Canadian provinces.

The selling point of this REIT is its tenant base, where it generates stable, contractual cash flows to sustain monthly dividend payments. About 80% of the lessees are government or credit-related tenants. The Federal Government of Canada is among the anchor tenants, accounting for 17.5% of TNT’s gross revenue.

In addition to the high occupancy rate of 93%, the average weighted lease terms in renewals & replacements, and new deals are 4.4 years and 9.1 years, respectively. 

Count years

Dividend investing can provide recurring passive-income streams with minimal work. However, if the goal is to reach a balance of $1 million, be ready to count years.    

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

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