Sign of financial freedom

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People can make fortunes in the stock market, but it takes time to reach a significant sum. $100,000 today, earning an average annual return (including reinvestment) of 10%, can grow to $1 million in about 25 years.

Three high-yielding TSX dividend stocks with an average dividend yield of 10.46333% can help shorten the wait. However, you must now accumulate $150,000 worth of stocks and have a higher risk tolerance. You won’t spend more than $20 a share to grow your money to $1,018,685.88 (including dividend reinvestment) in 19.25 years.

Science of Investment Management

Fiera capital (TSX:FSZ) offers customized multi-asset solutions for all asset classes in the public and private markets. The client base includes institutional clients, financial intermediaries and private wealth clients throughout North America, Europe and the major Asian markets.

At just $7.30 per share (-13.81% year-to-date), the independent asset management firm is paying an inflated $749.27 million dividend of 11.56%. The prevailing macroeconomic uncertainty is reflected in the underperformance of the financial stock. Management said that 2022 declines in stock and bond markets would hurt the wealth management industry.

In 2022, total revenue and net income decreased 9.1% and 65.5% from 2021 to $681.4 million and $25.3 million, respectively. Notably, assets under management (AUM) fell 15.8% year over year to $158.5 billion. Nevertheless, Fiera is preparing for three possible scenarios (deep recession, stagflation and disinflation) and would adjust its portfolio strategy accordingly.

Temporary weakness

The energy sector continues to collapse in 2023 due to falling oil prices. cardinal energy (TSX:CJ) is one of the fastest growing stocks with a three-year return of 1,267.36%. As of this writing, the year-to-date loss is 7.56% ($6.82 per share). Still, current investors are enjoying a 9.96% yield after the company reintroduced its dividends in 2022. The monthly dividend looks safe given the 49% payout ratio.

The $1.06 billion, low-drop, oil-focused company operates in four core areas in western Canada. In 2022, total revenues (oil and natural gas) and revenues increased 66% and 6% from 2021 to $737.6 million and $302.7 million, respectively. Notably, cash flow from operations grew 170% year over year to $337.3 million.

Management said the highlight of the last year was the significant reduction in net debt (down 65% to $62.6 million). The overall focus for 2023 is to improve sustainability, reduce business risk and secure returns for shareholders, including special dividends where appropriate.

Solid tenant profile

True North Commercial (TSX:TNT.UN) is trading at a deep discount (-47.82% year-to-date), but at $2.93 a share, the dividend offering is a delicious 9.87%. The $277.27 million real estate investment trust (REIT) owns and operates 47 high-quality commercial properties in five Canadian provinces.

This REIT’s selling point is its tenant base, where it generates stable, contractual cash flows to sustain monthly dividend payments. About 80% of the tenants are government or credit-related tenants. The federal government of Canada is a major tenant, accounting for 17.5% of TNT’s gross revenues.

In addition to the high occupancy rate of 93%, the weighted average lease terms for extensions & replacements and new leases are 4.4 years and 9.1 years, respectively.

count years

Dividend investing can provide recurring passive income streams with minimal effort. However, if the goal is to reach $1 million in bankroll, be ready to count the years.


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