Can a stock investment grow tenfold, say from an initial $20,000 to $20,000? The surprising truth is that it can. However, you also need to invest time and hold high-yield dividend stocks with good dividend track records. A tax-advantage account like the Tax-Free Savings Account (TFSA) could be your appropriate investment vehicle.
Two Canadian stocks that can help achieve the long-term financial goal are Timbercreek Financial (TSX:TF) and PHX Energy Services (TSX:PHX). The average dividend yield is 9.86%. If you were to invest $20,000 today and reinvest the dividends, the value of your investment will compound to approximately $200,200 in 25 years. As mentioned, the time horizon must be longer.
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Conservative lending program
Timbercreek Financial is among the select TSX stocks that pay monthly dividends. At $7.59 per share, the dividend yield is 9.04%. The Bank of Canada’s rate cut in September 2025 is also expected to reduce mortgage rates.
This $631.4 million non-bank lender provides short-term mortgage loans to real estate investors. Because the loans are secured by income-producing properties (76.3%), the likelihood of default is minimal. Timbercreek’s conservative lending strategy also focuses on multi-family rental housing (54.4%) due to strong demand.
Besides the flexible financing solutions, the speed of loan processing and timely execution are competitive advantages. Timbercreek’s extensive network of real estate professionals in Canada, the U.S., and Europe assists in managing the loans until full satisfaction or payment.
The business model is resilient, given that the weighted average interest rate (WAIR) is well-protected. About 87% of the portfolio consists of floating-rate loans. In the second quarter (Q2) of 2025, the net investment portfolio increased by 3.2% to $1.1 billion versus Q2 2024, although net income declined 19.5% year-over-year to $12.4 million.
Blair Tamblyn, CEO of Timbercreek Financial, stated that tariff-related macroeconomic volatility affected the commercial real estate conditions. Still, he believes that stabilizing interest rates, along with the growing portfolio and pipeline, are positive factors for the business.
Generous income provider
PHX Energy Services is a generous passive income provider. The mouth-watering 10.68% dividend yield and the relatively cheap price of $7.76 make it an enticing choice. A $7,000 investment can purchase 902 shares of this mid-cap stock. PHX is a TSX30 winner in 2024, placing 20th in the flagship program for TSX’s top growth stocks.
The $6.8 billion oil and natural gas services company provides horizontal and directional drilling services through its directional subsidiary entities. Its customer base consists of Canadian and American oil and natural gas exploration and development companies.
In Q2 2025, consolidated revenue increased 9% to $167.7 million compared to Q2 2024. It was PHX’s highest second-quarter revenue on record. However, net earnings dropped 34.1% year over year to $8.5 million. Notably, excess cash flow increased 162.9% to $9.3 million from the same period last year.
PHX expects to remain resilient and generate strong activity in the second half of 2025, notwithstanding the weaker industry environment. The company also commits to maintaining a high level of shareholder rewards.
Consistent payouts
Timbercreek Financial and PHX Energy Services have not disappointed income investors. The former has consistently paid monthly dividends since July 2016, while the latter has never missed a quarterly payout since Q4 2020.
