3 High-Yield Dividend Stocks to Buy Now for a Lifetime of Passive Income

These three high-yielding dividend stocks offer passive income, but also a long-term investment strategy for those wanting to park their cash.

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Every Canadian could use extra cash. The rising cost of items at every single store in the country has certainly made sure of that. Soaring inflation is likely why dividend stocks have become so popular once again. Yet when it comes to these high-yielding dividend stocks, you’re not just gaining exposure to high passive income. You’re also gaining access to a long-term hold.

With that in mind, today we’re going to look at three high-yield dividend stocks that continue to fit the bill.

CIBC

If you’re looking for safety and passive income, then Canadian Imperial Bank of Commerce (TSX:CM) belongs on your list. CIBC stock continues to be a strong dividend stock with a current dividend yield at 5.33% as of writing.

What’s more, CIBC stock has been seeing improvements in its earnings. After earnings that barely scraped by estimates, or missed them entirely, the first quarter soared past estimates. This put the company in a strong position, with its Canadian clients continuing to remain loyal to the brand.

Furthermore, CIBC stock continues to look like a deal when digging into its fundamentals. It trades at just 10.3 times earnings over the past year, demonstrating that the stock continues to trade under its intrinsic value – especially when adding that it trades at 1.3 times book value, even with shares up 18% in the last year! So I would certainly consider this high-yielding dividend stock while it continues to offer a yield higher than its five-year average of 5.28%.

TC Energy

Another company offering an ultra-high dividend yield while also providing long-term income is TC Energy (TSX:TRP). This energy provider has also been a huge dividend stock provider, holding a yield at 7.28% as of writing.

Now, TRP stock has long been a pipeline company. And that was great in the past. But the company is now slowly but surely transitioning over to renewables as well. This provides investors with a long-term investment opportunity. Right now, you can still gain from the long-term contracts providing stable cash flow. However, you also don’t have to worry about a fall in the future, given that it’s investing in renewables as well.

Meanwhile, TRP stock currently trades at 20.2 times earnings, which is still lower than its five-year average of 25.6 times earnings. It also trades at just 2 times book value, with shares down 6% in the last year. Yet after a massive fall in April, the stock is up 8.3% and climbing back to 52-week highs. So again, I would grab this dividend stock while it still offers a dividend that’s far higher than its five-year average of 5.75%.

Canadian Utilities

Now if you’re really looking for solid long-term income from a dividend stock, then Canadian Utilities (TSX:CU) has likely already come to your attention. With a dividend yield at 5.69%, CU stock is a strong option. And one you can look forward to growing year after year.

As with TRP stock, the company is an energy provider. Yet while this involves some gas production, it’s also invested in other types of energy production. All to power the utilities we use on a daily basis. And the company has managed to be such a strong cash flow generator that it was the very first Dividend King on the TSX. This means it’s been increasing its dividend each year for the last 50 years!

So with shares trading at just 14.9 times earnings, and down 19% in the last year, it looks like a strong time to buy. Especially while trading at 1.6 times book value, and its earnings are lower than its five-year average of 19.4 times earnings. Shares have started to climb once more, so I would certainly consider this dividend stock as well for high-yield income for life.

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. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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