Investing in dividend stocks is one of the easiest ways to generate passive income without having to lift a finger. If you have $7,000 to put to work, three mid-cap Canadian stocks stand out as strong options. Those are Choice Properties Real Estate Investment Trust (TSX:CHP.UN), Chemtrade Logistics Income Fund (TSX:CHE.UN), and Aecon Group (TSX:ARE). Each of these dividend stocks provides a solid dividend yield while offering exposure to different sectors, ensuring a well-balanced portfolio.
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A great choice
Choice Properties is a major player in the Canadian real estate sector, primarily focused on retail and industrial properties. With a high occupancy rate of 97.7% as of its most recent earnings report, the dividend stock continues to benefit from strong demand in its core markets.
Over the past quarter, leasing spreads came in at 15.3%, indicating that tenants are willing to pay higher rents. This bodes well for future cash flows. The dividend stock also completed $172 million in real estate transactions, with $130 million in acquisitions and $42 million in dispositions, further strengthening its portfolio. Given its close ties with Loblaw, which anchors many of its properties, Choice Properties remains well-positioned for stable long-term growth. With a forward annual dividend yield of around 5.6%, it offers a steady stream of passive income for investors.
Chemically balanced
Chemtrade Logistics Income Fund is another intriguing pick, operating in the industrial chemicals space. This dividend stock provides essential chemicals used across multiple industries, including water treatment and energy. With a market capitalization of approximately $1.23 billion and an enterprise value of $2.06 billion, Chemtrade is a well-established player in its field.
Despite facing some revenue headwinds, the company maintains a strong balance sheet and has continued to generate solid cash flow. The company’s price-to-earnings (P/E) ratio of 9.30 suggests that it remains attractively valued, especially compared to broader market averages. More importantly for income investors, Chemtrade offers an impressive forward dividend yield of 5.72%. This translates to significant passive income. With a payout ratio of 57.27%, the dividend appears sustainable, making it an appealing option for those looking for steady returns.
Building blocks
Aecon, a leading construction and infrastructure company, provides a different kind of income opportunity. As one of Canada’s largest builders, Aecon benefits from major government spending on infrastructure projects. The dividend stock’s most recent earnings report showed that it continues to win large contracts, ensuring long-term revenue visibility.
Aecon’s market capitalization stands at $1.50 billion, and its forward price-to-earnings ratio of 6.85 indicates that it is currently trading at a discount. The dividend stock has performed well over the past year, climbing from a 52-week low of $13.03 to a recent high of $29.70, reflecting growing investor confidence. While its dividend yield of 3.16% is lower than the other two stocks, it still provides a solid return, particularly when combined with its strong growth potential.
Making bank
One of the key advantages of this approach is the combination of high-yield stability and growth potential. Choice Properties, with its strong real estate holdings and steady rental income, provides the foundation for reliable dividends. Chemtrade adds a high-yield industrial component, benefiting from essential chemical demand. Aecon, while offering a slightly lower dividend, brings infrastructure exposure with the potential for share price appreciation. Together, they offer a well-rounded mix of income and growth. In fact, here’s just how much when that $7,000 investment is distributed equally:
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
| CHP.UN | $13.36 | 174 | $0.76 | $132.24 | monthly | $2,333 |
| CHE.UN | $10.18 | 229 | $0.66 | $151.14 | monthly | $2,333 |
| ARE | $23.81 | 98 | $0.76 | $74.48 | quarterly | $2,333 |
In total, investors now have $357.86 in passive income! For those looking to generate passive income with a reasonable level of risk, this three-stock combination offers a compelling opportunity. By diversifying across real estate, industrial chemicals, and infrastructure, investors can benefit from strong yields while maintaining exposure to key sectors of the Canadian economy. With a combined annual dividend income of over $330, it’s an investment strategy that not only pays off in the short term but also has strong potential for long-term growth.
