2. • The coronavirus pandemic exposed companies that were
unprepared for volatile market conditions in 2020. While some
entities were brutal impacted, others adopted swift cost-cutting
measures such as slicing dividends. By April 2021, the Canadian
markets were back in green and companies restored dividends to
the levels before the pandemic hit the world. Some even increased
their dividend payouts to shareholders!
• According to a report by research firm S&P Global Market
Intelligence, at least 60 companies listed on the Toronto Stock
Exchange (TSX) increased dividends in the first quarter of 2021 and
the overall number is expected to rise in this year.
3. • The S&P/TSX Composite Index approximately
covers 95 per cent of the Canadian share
market and it has grown by 13.3 per cent year-
to-date (YTD) and 5.6 per cent quarter-to-date
(QTD). This indicates that the overall market is
in growth mode, and market experts suggest
that the country's main stock index may further
climb with economic recovery in sight.
• Dividend yields can help understand how much
profit is distributed by a company during a year
and is relative to the stock price.
4. • It is not always necessary to consider a high
dividend yield before investing in a stock.
The reason we say this is because if the
share prices are low, the dividend yield can
be high. Since economic recovery is
expected in Canada and the stock prices on
the TSX could grow further, exploring high
yield dividend stocks might provide you
with timely gains this year.
5. Four TSX Stocks With
Dividend Yield Over 7%
• Energy giant Enbridge Inc.
(TSX:ENB) has been around
for decades and is engaged
in the generation and
distribution of natural gas
and oil. As crude prices
rebound and some studies
predict further climb this
year, Enbridge is likely to
capitalize on this
opportunity. It pays a
quarterly dividend of C$
0.835 per unit and dividend
yield is 14 per cent.
6. The energy company has an 11.1 per cent return on equity and has grown by
about seven per cent in the last one year. It was priced at C$ 46.78 apiece on
Wednesday, May 26.
• Inovalis Real Estate Investment Trust (TSX:INO.UN) provides office spaces to
companies rent and has major business operations in France and Germany.
Inovalis distributes a monthly dividend of C$ 0.069 and registers a
current dividend yield of 3 per cent.
In Q1 2021, the firm’s rental revenue increased to C$ 7.4 million and net rental
income was C$ 4.4 million. The stock surged by 14 per cent in the last three
months and it catapulted by 38.5 per cent in the past year.
• MCAN Mortgage Corporation (TSX:MKP) is a regulated mortgage investment
firm and it pays C$ 0.34 apiece as a quarterly dividend. It registers a dividend
yield of 8 per cent. The mortgage stock grew by 46.3 per cent in the past year
and about 16 per cent year-to-date (YTD).
In the last three months, MKP stock surpassed the TSX 300 Composite Index
and was up 5.7 per cent.
• Labrador Iron Ore Royalty Corporation (TSX:LIF) is an equity investment
company that generates its major revenues from the Iron Ore Company of
Canada. It holds a price-to-earnings ratio of 10.3 and offers a 36.01 per cent
return on assets.
7. • On the dividend front, it pays a quarterly dividend of C$ 1
and holds an amazing dividend yield of 9.3 per cent.
Labrador had remarkable share price growth of 102.6 per
cent in the past year and outperformed the the S&P TSX
Steel Index. LIF stock grew 16 per cent quarter-to-
date and about five per cent last month.
• Please note: The above constitutes a preliminary view
and any interest in stocks should be evaluated further
from an investment point of view. The reference data in
this article has been partly sourced from Refinitiv
