Buy These 2 TSX Stocks to Start Earning High-Yielding Dividend Income Today

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Yield is the first thing investors look at when buying dividend stocks, and it’s easy to see why. But this should not be the only factor you should consider when choosing an investment. Sometimes, the fall that drives higher yields isn’t just a temporary thing. What’s more, if it’s due to fundamental weaknesses in the underlying business (especially financials), you may want to consider other options.

With that in mind, there are two dividend stocks that offer decently high yields and are reasonably safe that you should consider.

A power share

Keira (TSX:KEY) is a midstream giant. Although it’s not on par with the pipeline giant Enbridge, which has significant storage and transport properties. It also has a dozen gas processing facilities, refining natural gas to consumer grade. Another significant business segment of Keyera is Marketing, which further diversifies its operations.

This business model has not protected Keira from the various headwinds that have periodically rocked the energy business in Canada, as evident from the stock’s steady decline since 2014. Energy stocks It started recovering well before the 2020 bullish phase.

It is also not rising as fast as its peers in the industry, and the valuation is still close to reasonable. This makes Keira a bit more stable and a relatively reliable bet if a correction is on the cards for the energy sector. If you were to invest $25,000 in the company, the 6.5% yield it currently offers would help you earn about $136 a month.


Although the healthcare sector itself is not rich in dividend options, the related business viz. Northwest Healthcare Properties REIT (TSX:NWH.UN), certainly worth considering. Not only does it give you access to a wide range of healthcare properties with a steady clientele like hospitals and medical office buildings, it also gives you decent international access.

A portfolio of 231 properties spread across eight countries, with 97% occupancy and a 14-year average lease expiration (WALE). This ensures steady returns for at least the next decade, and also ensures stability of dividends to its investors. A safe payout ratio (69%) gives the stock an additional leeway regarding dividend protection.

This stock is currently heavily discounted and undervalued p/e ratio Just 7.8. A discount of 32% has raised the yield to a desirable level – 8.3%. So if you invest $25,000 in stocks, you can earn about $172 a month.

Stupid carrying

A couple of dividend stocks can help you generate a decent amount of passive income to supplement your principal income. If you generate this income from a TFSA, it won’t weigh on your tax bill. Dividends appear to be sufficiently resilient as both companies have maintained their payouts during the pandemic. And for Keira, you can even benefit from future dividend increases.


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