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!

| More on:
dividends grow over time

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Created with Highcharts 11.4.3Canoe Eit Income Fund PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

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!

Should you invest $1,000 in Canoe Eit Income Fund right now?

Before you buy stock in Canoe Eit Income Fund, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canoe Eit Income Fund wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

dividend growth for passive income
Dividend Stocks

Why I’d Invest in Canadian Value Stocks for Both Stability and Growth

Three Canadian value stocks are buying opportunities for investors looking for stability and growth.

Read more »

investment research
Dividend Stocks

Got $15,000? 3 Blue-Chip Stocks Every Canadian Should Consider

Here's why investing in blue-chip TSX stocks such as CNQ and CNR should derive outsized gains in 2025 and beyond.

Read more »

protect, safe, trust
Dividend Stocks

Where I’d Allocate $20,000 in 2 Safer High-Yield Dividend Stocks for Retirement Needs

Here are two safer, high-yield dividend stocks I'm looking at for my retirement needs.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 Reasons I’m Considering Enbridge Stock for a $5,000 Investment This April

I'm considering Enbridge stock to provide some defensive appeal and a juicy dividend to my long-term portfolio.

Read more »

monthly desk calendar
Dividend Stocks

A 9.2% Dividend Stock Paying Cash Every Single Month

With one of the highest dividends out there, this dividend stock deserves attention in your portfolio.

Read more »

Happy golf player walks the course
Dividend Stocks

Build a Powerful Passive Income Portfolio With Just $20,000

If you are worried that the bear market could reduce your savings, these stocks can build a powerful passive income…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How I’d Use My $7,000 TFSA Contribution to Start Retirement Planning

These TSX stocks have solid fundamentals and are well-positioned to deliver significant tax-free total returns over time.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How to Turn Your TFSA Into a Gold Mine Starting With Only $10,000

It doesn't have to be complicated or scary. You can turn any portfolio into a major gold mine.

Read more »