Buy 370 Shares of This Super Dividend Stock for $838.60 in Passive Income

This dividend stock is the gift that keeps on giving, especially when it comes to steady passive income for life!

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If you’re on the hunt for a solid addition to your portfolio, let me introduce you to Canoe EIT Income Fund (TSX:EIT.UN). Trust me; this one deserves a spot on your radar. With an 8.64% dividend yield and shares up 8% in the last year as of writing, it’s one that certainly needs a look. So, let’s get into why.

The dividend

First off, let’s talk about dividends. Who doesn’t love a nice, steady income stream? Canoe EIT Income Fund is known for its juicy monthly distributions. We’re talking about a current yield of around 8.64%! That’s right, huge funds just from holding onto this dividend stock. In a world where interest rates are lower than your last limbo contest, this yield is pretty hard to beat.

But it’s not just about the dividends. Canoe EIT Income Fund offers a diversified portfolio of blue-chip stocks. This means you’re not putting all your eggs in one basket. With holdings across various sectors like financials, energy, and healthcare, you’re spreading out the risk while tapping into the growth potential of some of the biggest names in the game. Think of it like a well-mixed cocktail of investments — balanced and refreshing!

Another perk is that the fund is actively managed. This means there’s a team of pros constantly tweaking the portfolio to optimize performance. They’re not just sitting back and letting the market do its thing; they’re actively seeking opportunities to boost returns. It’s like having a personal financial advisor working round the clock for you but without the hefty fees.

How it’s done lately

Now, let’s talk performance. Over the past year, Canoe EIT Income Fund has delivered a solid return, outpacing many of its peers. Sure, the stock market has its ups and downs, but this fund has shown resilience and the ability to bounce back. It’s the kind of reliability you want in your corner, especially in these unpredictable times.

In its most recent earnings report, Canoe EIT Income Fund reported net investment income of $30.2 million. That’s a serious chunk of change! This figure showcases the fund’s ability to generate consistent income from its diverse portfolio of investments, ranging from financial services to energy companies.

Another exciting point is the fund’s asset growth. As of the latest report, Canoe EIT Income Fund boasts total assets of over $1.5 billion. This growth indicates strong investor confidence and robust management strategies. The bigger the fund, the more resources it has to weather market volatility and seize investment opportunities.

Finally, the fund’s portfolio is a treasure trove of top-tier investments. It includes holdings in powerhouse companies like Royal Bank of Canada, Enbridge, and Shopify. These aren’t just any stocks — these are some of the heavyweights of the Canadian market. Their strong performance and growth prospects contribute significantly to the fund’s overall earnings and stability.

Bottom line

So, what does all this mean for you as an investor? It means that Canoe EIT Income Fund is not just about impressive dividends and attractive yields. It’s backed by solid earnings, a diversified and well-managed portfolio, and a track record of consistent performance. Investing in this fund is like having a reliable source of income that keeps growing and adapting to market conditions — it’s the gift that keeps on giving!

How much could it give? Let’s say we see another year of 8% growth. Add in the dividend, and this is the passive income you could receive from a $5,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYPORTFOLIO TOTAL
EIF.UN – now$13.50370$1.20$444monthly$5,000
EIF.UN – 8%$14.58370$1.20$444monthly$5,394.60

That’s right; you could make $444 in dividends and $394.60 in returns. Altogether, that’s passive income of $838.60 from 370 shares!

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 Royal Bank Of Canada and Shopify. The Motley Fool has positions in and recommends Shopify. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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