When interest rates are high and the economy feels uncertain, many Canadians start looking for ways to lock in steady, reliable income. That’s where dividend-paying stocks come in, especially the kind that won’t keep you up at night. If you’ve got $10,000 to invest in your Tax-Free Savings Account (TFSA), one dividend stock that checks a lot of boxes right now is Rogers Sugar (TSX: RSI).
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RSI
Rogers Sugar might not be the most exciting company on the TSX, but sometimes boring is beautiful. It makes a product almost everyone uses and offers a solid dividend yield that pays you to wait. With a long history in Canada and a reputation for reliability, it’s become a favourite among income investors, especially those focused on maximizing every dollar in a TFSA.
As of writing, Rogers Sugar is trading at around $5.60 per share. That puts it squarely in the category of accessible investments. You don’t need to drop tens of thousands of dollars to build a decent position. For $10,000, you could pick up roughly 1,782 shares. The stock currently pays an annual dividend of $0.36 per share, which works out to a yield of about 6.42%. That’s well above what you’d get from most Guaranteed Investment Certificates or high-interest savings accounts right now.
Here’s where it gets more interesting. When you multiply those 1,782 shares by the annual dividend, you’re looking at around $641.52 in passive income every year. Since Rogers Sugar pays dividends quarterly, that’s about $160.38 every three months, all tax-free inside a TFSA. This is all worked out in the chart below.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency | Total Investment |
|---|---|---|---|---|---|---|
| RSI | $5.61 | 1,782 | $0.36 | $641.52 | Quarterly | $10,000 |
Beyond the yield
Rogers Sugar is more than just a high-yielder. The dividend stock has stayed profitable and dependable despite shifting consumer trends and inflation pressures. In its latest earnings report, Rogers Sugar brought in $323.17 million in revenue for the quarter and reported net income of $15.81 million. It has also maintained a stable payout ratio of around 80%, which suggests it has room to keep paying dividends while still funding its operations and growth.
The dividend stock’s business is split between sugar production and maple products. While neither is exactly trendy, both are essentials. Even when people tighten their belts, sugar isn’t going anywhere. This kind of predictability makes Rogers Sugar a defensive stock, one that can hold its ground when the market gets rocky.
And then there’s the TFSA advantage. Any income you earn inside your TFSA is completely tax-free. That $641.52 in annual income? You get to keep every cent. That’s what makes dividend stocks like RSI so attractive in this account. Instead of handing over a chunk of your gains to the CRA, you can reinvest it or spend it, your choice, with no strings attached.
Bottom line
Of course, no investment is risk-free. Rogers Sugar operates in a sector that faces regulatory scrutiny, weather disruptions, and the ever-changing costs of raw materials. However, these risks are fairly well understood, and the dividend stock has shown that it can navigate them. The stock isn’t built for explosive growth, but it’s not supposed to be. This is a steady, dependable income play, and sometimes, that’s exactly what a TFSA needs.
To sum it up, if you’re looking for a smart, low-maintenance way to put $10,000 to work in your TFSA, Rogers Sugar makes a lot of sense. It’s reliable, pays well, and fits perfectly into a long-term income strategy. With interest rates staying higher for longer, it could be one of the sweetest deals on the TSX right now.
