2 Above 6% Yielding Dividend Stocks to Buy Today

2 TSX income stocks that pay more than 6% dividends are your best tools right now to counter inflation.

| More on:
Technology

Image source: Getty Images

Many investors usually focus on earning extra, if not recurring, income during inflationary periods. The best tools right now if you have the same objective are dividend stocks. Fiera Capital (TSX:FSZ) and Rogers Sugar (TSX:RSI) are not the usual anchor stocks, but income seekers would pick them for the high yields.

Besides spending less than $20 per share combined, the average dividend yield is a hefty 7.13%. The independent asset management firm pays 8.04%, while the consumer staple stock yields 6.22%.

Both stocks are also eligible investments in a Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). A $25,000 position in each will produce a total of $891.25 passive income every quarter. Thus far, in 2021, the two stocks have identical gains of a little over 8%.

$180 billion AUM

Fiera Capital specializes in customized and multi-asset solutions (public and private market asset classes). The client base of this $1.11 billion company consists of institutional and private wealth clients plus financial intermediaries. Its reach is North America, Europe, and selected Asian markets. As of September 30, 2021, the assets under management (AUM) are around $180.8 billion.

Despite the uncertain economic environment, management said Fiera Capital achieved multiple successes in the last three quarters. First up is the 1.7% revenue growth versus Q3 2020. Secondly, its adjusted net earnings grew 20.1% year-over-year. Last was the 2.4% increase in dividend payments.

According to Lucas Pontillo, Fiera’s Executive Vice-President and Global CFO, the increase is effective or payable this month. He adds that the dividend increase in 2021 is also the first time in two years (2019 and 2020).

Among the many improvements within Fiera during the period was introducing and implementing a global operating model for stronger strategic alignment purposes. Also, management continues to enhance its investment platform, particularly in public markets. On the private market side, capital deployment skews toward high-quality assets. The AUM in the latter topped $15.0 billion after three quarters.

Great financial shape

Rogers Sugar needs no introduction as it’s the leading sugar and maple producer in the country. The consumer staple stock is a generous income provider. You get value for money at only $5.79 per share while feasting on the 6.22% dividend yield.

The $600.34 million company is in great financial shape in fiscal 2021. Rogers Sugar reported 3.8% and 34.2% growth in revenue and net earnings versus fiscal 2020. According to its President and CEO, Mike Walton, the company met its volume targets for sugar and maple in Q4 fiscal 2021. He also notes the improved overall sales margins in both.  

With the strong demand for sugar and maple and the return to normal operating conditions, Walton anticipates the two business segments to deliver improved performance in fiscal 2022.  Similarly, the company can revert to a more traditional and profitable sales mix. Once it happens, it will enable Rogers Sugar to create value for its shareholders continually.

Counter inflation now

Don’t wait for inflation to diminish your purchasing power. Counter or mitigate the risk by loading up on high-yield assets like Fiera Capital and Rogers Sugar. They aren’t TSX high-flyers but are excellent dividend plays for yield-thirsty investors.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Earn $2,000 in Passive Income in 2025 With Less Than $51,000 in Savings

You can invest in Canadian high yield stocks via the Vanguard FTSE Canadian High Yield Dividend ETF (TSX:VDY).

Read more »

monthly desk calendar
Dividend Stocks

This 7.8% Dividend Stock Pays Out Every Month

Not all monthly dividend stocks are created equal. And this top stock is certainly a strong choice for passive income.

Read more »

A worker gives a business presentation.
Dividend Stocks

Is TMX Group Stock a Buy, Sell, or Hold for 2025?

TMX Group (TSX:X) stock has been a consistent wealth-builder, generating 4,630% in total returns since 2002. Should you buy, sell,…

Read more »

Man data analyze
Dividend Stocks

2 Deeply Undervalued Dividend Stocks to Buy in November

Here are two stocks that I view as deeply undervalued this November.

Read more »

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »