Attention Retirees: Here’s How to Claim $13,750 in Passive Income for 2020

This trio of high-yield plays, including Suncor (TSX:SU)(NYSE:SU), can provide the fat income you need now.

| More on:

Hi there, Fools. I’m back to highlight three top high-yield dividend stocks. As a reminder, I do this because stocks with attractive yields: provide a healthy income stream in both good and bad markets and tend to outperform the market over the long run.

The three stocks below offer an average dividend yield of 5.5%. If you spread them out evenly in a $250K RRSP account, the group will provide you with an annual income stream of $13,667; on top all the appreciation you could earn.

Let’s get to it.

Paid with Peyto

Leading off our list is energy explorer Peyto Exploration & Development (TSX:PEY), which currently offers juicy dividend yield of 7.3%.

The stock has been walloped over the past year on weak energy prices, but recent results suggest that the dividend is safe. In Q2, Peyto generated earnings of $0.59 per share — its 58th straight quarter of positive earnings — and funds from operations clocked in at $76 million.

Moreover, management has slowed capital spending in order to firm up the balance sheet.

“By reducing its capital investment program, Peyto’s existing producing reserves will stabilize and become more sustainable with ever lower decline rates and an increasing reserve life, providing a solid platform for growth in shareholder value in the future,” wrote Peyto.

Peyto is down more than 50% in 2019.

Telus what you know

With a healthy dividend yield of 4.8%, telecom giant Telus (TSX:T)(NYSE:TU) is next on our list big income payers.

Telus’ efficient scale, steady subscriber growth, and fiber-to-home buildout should continue to underpin its hefty payout. In the most recent quarter, revenue improved 4.2%, EBITDA increased 10%, and earnings popped 31%.

During the quarter, wireless customer additions jumped 45% to 154,000 while wireline customer additions clocked in at 32,000. Meanwhile, free cash flow was a solid $324 million.

“TELUS reported strong second quarter results, including robust subscriber net additions across our portfolio of growth services,” said President and CEO Darren Entwistle. “This was anchored by the TELUS teams’ efforts to deliver a superior performance in respect of wireless and wireline customer loyalty.”

Telus is up 5% in 2019.

Sunny situation

Rounding out our list is energy giant Suncor (TSX:SU)(NYSE:SU), which currently offers a solid dividend yield of 4.4%.

Suncor’s dividend continues to be backed by an attractive asset portfolio, steady cash flows, and long-term oil sands growth. In the most recent quarter, funds from operations increased 10% to new Q2 record of $3 billion as total production jumped 21% to 803,900 boe/day.

Management also raised the upper end of its 2019 capital expenditure forecast to $4.9 billion-$5.4 billion.

“Strong cash flow generation and our commitment to capital discipline allowed us to return value to our shareholders through $658 million in dividends and $552 million in share repurchases while, at the same time, strengthening our balance sheet,” said CEO Mark Little.

Suncor shares are down 3% 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.

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

More on Dividend Stocks

open vault at bank
Dividend Stocks

Don’t Get Cute; Just Buy Stability: Top Defensive TSX Stocks to Buy Now

A healthy risk tolerance is essential for most investors, but many stray from the tried and tested, hoping to find…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

TFSA Investors: Buy These 3 Stocks for $3,480 Yearly Tax-Free Income

One significant benefit of a TFSA-based dividend income is that it doesn’t weigh down your tax bill.

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

3 High-Yield Dividend Stocks That Are Screaming Buys Right Now

Are you looking for great income stocks? Here's a trio of high-yield dividend stocks that pay insane yields right now.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Transform a $5,000 TFSA Into a $50,000 Retirement Nest Egg

The TFSA is a powerful tool that can grow a small investment into a substantial retirement nest egg over time.

Read more »

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »

analyze data
Dividend Stocks

3 Dividend Stocks That Are Screaming Buys in November

Here are three top dividend stocks long-term investors won't want to ignore during this part of the market cycle.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Generate $175/Month in Passive Income With a $30,000 Investment

Dividend aristocrats offer reliability, and many of them also offer generous yields. With sizable enough discounts, these yields can become…

Read more »

dividends can compound over time
Dividend Stocks

Best Dividend Stocks to Buy Now for Canadian Investors

These three stocks would be excellent additions to your portfolios, given their solid underlying businesses, consistent dividend growth, and healthy…

Read more »