Invest $25,000 in These Dividend Stocks for $1,423.88 in Annual Passive Income

These three dividend stocks offer income, but not just for a few years. They could offer decades of income.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 3, 2025 4:30 pm EST

| More on: EIFFSZNPI

Investing $25,000 in dividend-paying mid-cap stocks can be a great way to generate reliable passive income. While many investors focus on large-cap blue-chip stocks, mid-cap stocks often offer an attractive balance between stability and growth potential. Three Canadian stocks that stand out in this category are Exchange Income (TSX:EIF), Northland Power (TSX:NPI), and Fiera Capital (TSX:FSZ). Each of these dividend stocks has a strong dividend history and offers compelling opportunities for investors looking to build passive income.

Man holds Canadian dollars in differing amounts — Source: Getty Images

The stocks

Exchange Income is a diversified acquisition-oriented dividend stock with operations in aerospace, aviation services, and manufacturing. As of writing, EIF’s stock is trading at $51.40. The dividend stock recently reported record-high revenue of $688 million for the fourth quarter of 2024. However, earnings per share came in lower than expected, missing analysts’ estimates by 7%. While this may concern some investors, EIF has built a reputation for strong cash flow and reliable dividend payouts. The company’s forward annual dividend rate stands at $2.64 per share, which translates to a dividend yield of approximately 5.24%.

Northland Power is a leader in renewable energy, developing and operating clean power projects worldwide. As of writing, the dividend stock is trading at $19.45. The dividend stock’s latest earnings report showed revenue of $572 million for the fourth quarter of 2024, a decline from the $626 million reported in the same period of 2023. However, net income improved significantly, climbing to $150 million from a previous net loss of $268 million. This turnaround is a positive sign for investors, as it suggests the company is on stronger financial footing despite short-term revenue fluctuations. Northland Power has a forward annual dividend rate of $1.20 per share, yielding approximately 6.04%.

Fiera Capital is an independent asset management firm that has consistently rewarded investors with high dividend payouts. As of writing, the dividend stock trades at $6.56. The company’s fourth-quarter earnings came in below expectations, with adjusted earnings of $22.8 million or $0.21 per share, missing analysts’ projections of $0.38 per share. Despite this earnings shortfall, Fiera Capital maintains its generous dividend, which currently stands at $0.86 per share annually. This results in a dividend yield of 13.35%, one of the highest among Canadian dividend stocks.

Creating passive income

For investors looking to invest $25,000 into dividend stocks, these three mid-cap companies offer a range of risk and reward profiles. Exchange Income Corporation provides a balance of growth and income, Northland Power offers exposure to the growing renewable energy sector, and Fiera Capital delivers a high dividend yield, albeit with some earnings concerns.

If an investor were to split their $25,000 investment across these three stocks, they could generate a diversified passive-income stream. Each stock has its own strengths and challenges, so it’s essential to consider risk tolerance and long-term financial goals. By carefully selecting dividend stocks that align with income needs and growth potential, investors can build a portfolio that not only generates regular cash flow but also has the potential for capital appreciation.

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
EIF	$51.40	162	$2.64	$427.68	monthly	$8,333
NPI	$19.45	428	$1.20	$513.60	monthly	$8,333
FSZ	$6.56	1,270	$0.38	$482.60	quarterly	$8,333

Bottom line

Ultimately, investing in dividend stocks is about more than just the yield. It’s about finding companies with sustainable business models that can continue paying dividends for years to come. Exchange Income, Northland Power, and Fiera Capital each provide opportunities for passive income. Yet it’s important to monitor their financial health and market conditions. Still, investors could create a total of $1,423.88 in passive income. By staying informed and diversifying across strong mid-cap dividend stocks, investors can position themselves for long-term financial success.