TFSA Investors: 2 Dividend Stocks I’m Practically Addicted to Buying

These dividend stocks provide excellent income for my TFSA, especially with so much growth practically guaranteed in the future.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published April 27, 2023 1:00 pm EDT

| More on: BEP.UNVITL.UN

When it comes to dividend stocks, options abound. There are those with high dividends, there are Dividend Aristocrats, and there are growth stocks that also offer payouts. But when choosing dividend stocks for my portfolio, I’ve been practically addicted to buying two lately.

woman analyze data — Image source: Getty Images

NorthWest Healthcare REIT

When seeking high dividends, I tend to come back again and again to NorthWest Healthcare Properties REIT (TSX:NWH.UN). Honestly, for me it comes mainly down to a good share price, as well as a high dividend yield.

NorthWest stock currently offers an incredibly high dividend yield at 9.63% as of writing. What’s more, shares trade at about $8.25. It’s currently down 39% in the last year, trading at 0.8 times book value. So it’s a great deal, especially when you take into account the other factors.

There are certainly many real estate investment trusts (REIT) out there to consider with high yields. Nothing against them at all. In fact, I write about them all the time! But the reason I’m practically addicted to dividend stocks like NorthWest stock is because of its longevity.

While the company has been on the market for less than a decade, it has already established long-term income streams. Focusing on healthcare properties means it can lock up long-term lease agreements. The REIT currently holds a 97% occupancy rate with a 14-year average lease agreement. That’s stable income coming in, with its excess income used to purchase more properties.

So while shares are down, I’ve been drip-feeding into this stock again and again, and plan on continuing to do so. And while I’m waiting for shares to rise, I’ll look forward to monthly passive income from my investment again and again.

Brookfield Renewable Partners LP

Another one of the dividend stocks I’ve been addicted to buying is Brookfield Renewable Partners LP (TSX:BEP.UN), but for a different reason entirely. Here, I still get a solid dividend from Brookfield stock; however, I’m more into it for the growth.

Renewable energy continues to be the way of the future. Countries around the world continue to move away from dependency on oil and gas. In large part, this will allow them to produce their own energy. In fact, even the Organization for Petroleum Exporting Countries (OPEC+) stated that developed countries will no longer use oil and gas by 2040.

Given this, Brookfield’s diverse supply of renewable energy assets is a great place for long-term investors. I plan on continuing to hold and drip-feed into it for decades. Right now, shares are down about 8% in the last year. BEP.UN trades at 1.8 times book value as of writing, and offers a 4.32% dividend yield as well.

There is a lot of growth coming for this stock, even with shares up 156% in the last decade. So I’ll certainly continue to buy up this stock for years to come. Especially while it continues to be one of the dividend stocks with a reasonably high yield.