Attention Passive-Income Seekers: Nail Down $11,250/Year With These 3 Cash Gushers

This trio of high-yield plays, including Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), can provide the fat income you need now.

Hi again, Fools. I’m back to highlight three top high-yield dividend stocks. As a reminder, I do this because stocks with attractive yields

The three stocks below offer an average dividend yield of 4.5%. If you spread them out evenly in a $250K RRSP account, the group will provide you with an annual income stream of $11,250; on top all the appreciation you could earn.

Let’s get to it.

Telus everything

Leading off our list is telecom giant Telus (TSX:T)(NYSE:TU), which currently offers a juicy dividend yield of 4.5%.

Telus’s fat payout is heavily supported by massive scale, a rock-solid balance sheet, and hefty recurring cash flows. In the most recent quarter, for example, revenue improved 4.2% to $3.5 billion, while free cash flow before taxes clocked in at a whopping $503 million.

On that strength, management boosted the quarterly dividend to $0.5625 per share, its 17th increase since 2011.

“Our consistent execution, healthy balance sheet and strong cash flow outlook, including our expectations for moderating capital expenditures, provides our team with the confidence to extend our multi-year dividend growth program through 2022,” said CFO Doug French.

Telus shares are up 8% so far in 2019.

Sunny days

With a healthy dividend yield of 3.8%, oil and gas giant Suncor Energy (TSX:SU)(NYSE:SU) is next on our list.

Suncor’s dividend is underpinned by attractive oil sands assets, significant growth prospects, and a long track record of operational success. In fact, the company’s daily oil sands production has increased 600% ever since going public in 1992. Over the same time frame, Suncor’s total return on investment has returned a whopping 5,173%.

In the most recent quarter, the company generated $2.6 billion in funds from operations.

“Suncor’s integrated model has consistently generated positive results through changing market conditions, including mandatory production curtailments in Alberta, and the first quarter of 2019 was no different,” said COO Mark Little.

Suncor is up 10% in 2019.

Imperial empire

Rounding out our list is banking behemoth Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), whose shares offer a fat dividend yield of 5.3%.

CIBC’s dividend is backed by a strong regulatory operating environment, massive scale, and an increasingly diverse business model. Revenue improved 3.7% to $4.5 billion in the most recent quarter, fueled by strong performance in commercial banking, wealth management, and capital markets.

CIBC also sought approval from the Toronto Stock Exchange to repurchase up to nine million of its common shares.

“We delivered solid earnings this quarter, reflecting the strength of our increasingly diversified business,” says CEO Victor Dodig. “We continued to invest across our bank for the future, while gaining efficiencies through our ongoing transformation.”

CIBC shares are up 2% so far in 2019.

The bottom line

There you have it, Fools: three top high-yield stocks worth checking out.

As always, don’t view them as formal recommendations. Instead, look at them as a starting point for more research. A dividend cut (or halt) can be especially painful, so you’ll still need to do plenty of due diligence.

Fool on.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 

More on Dividend Stocks

investment research
Dividend Stocks

Best Stock to Buy Right Now: TD Bank vs Manulife Financial?

TD and Manulife can both be interesting stock picks for today, depending on your investment style.

Read more »

A worker gives a business presentation.
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

These stocks are out of favour but could deliver nice returns over the coming years.

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 5.5 Percent Dividend Stock Pays Cash Every Month

This defensive retail REIT could be your ticket to high monthly income.

Read more »

Confused person shrugging
Dividend Stocks

Passive Income: How Much Do You Need to Invest to Make $600 Per Month?

Do you want passive income coming in every single month? Here's how to make it and a top dividend ETF…

Read more »

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »