3 Dividend Stocks to Double Up on Right Now

Doubling up on the right dividend stock at the right time can significantly boost your passive-income portfolio.

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A discount, if it stems from benign reasons like a weak market or sector, can make a dividend stock quite appealing. It increases the yield and allows you to take advantage of the recovery-based returns. Additionally, if you already have such stocks in your portfolio, you can improve the overall yield by doubling up on them when they are discounted.

A mortgage company

MCAN Mortgage (TSX:MKP) is a relatively small mortgage company with a small-cap stock. The company primarily caters to residential customers and offers a range of custom mortgage solutions. While it’s usually considered for its dividends, the stock also experienced a decent bull run in 2024 and rose by about 17%. However, the trajectory has shifted.

Created with Highcharts 11.4.3Mcan Mortgage PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The stock has recently taken a nose-dive and has fallen over 5% in a little over a week. This has pushed the yield slightly, but if the trend continues, the yield might be significantly beefed up. It currently stands at 8.3%, which is already a mouthwatering number. Other endorsements for this stock’s dividends are its rock-solid payout ratio and healthy payout history.

A royalties company

Energy stocks aren’t having the best of times right now, and this applies to non-conventional energy companies like Freehold Royalties (TSX:FRU). The company has a portfolio of mainly energy and, to a lesser extent, mineral properties in North America, including 6.1 million gross acres in Canada and 1.2 million gross drilling acres in the United States. The portfolio leans heavily towards oil.

Created with Highcharts 11.4.3Freehold Royalties PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

This is one reason the stock has experienced a slump and has fallen over 11.8% from its yearly peak. This has made the stock attractive on two fronts—valuation and yield. It’s trading at a price-to-earnings ratio of 14.9 and offering a juicy yield of around 8.2%. The payout ratio of the stock is not very healthy per se, but compared to this ratio in the past years, it’s relatively stable.

A manufacturing company

Markham-based Exco Technologies (TSX:XTC) offers innovative technologies and solutions to two industries: die-cast and automotive manufacturers. The company portfolio includes several brands specializing in automotive protection and storage, trim, tooling solutions, etc.

Created with Highcharts 11.4.3Exco Technologies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The stock had a decent year but started falling in the last few months. Currently, it’s trading at an 11% discount from its yearly peak. This has augmented its yield by a small margin and pushed it to 5.3%. The payout ratio is relatively healthy as well. Also, the company has recently posted solid earnings, indicating the financial viability of its dividends.

Foolish takeaway

The three stocks offer healthy dividends and solid yields. Solid financial numbers and payout ratios back the dividends of the two companies, and all three have relatively stable dividend histories. Adding to your existing pool of these stocks can help you enhance the potential of your passive-income portfolio.  

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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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Exco Technologies. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.

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