Yahoo Finance Retirees: 2 High-Yield Dividend Stocks to Buy in July
Written by Amy Legate-Wolfe at The Motley Fool Canada
Retirees, it’s time to let your money work as hard as you did all those years! High-yield dividend stocks are the VIP ticket to a comfortable and carefree retirement. Imagine sipping a piña colada on a sunny beach while your investments churn out regular cash flows. Sounds enticing, right?
These stocks can act as a sturdy anchor in the sometimes stormy seas of the stock market. High-yield dividends often come from well-established companies with solid track records. This means they’re less likely to be swayed by market turbulence, giving you peace of mind and stability. With the power of compound interest, reinvesting those dividends can supercharge your portfolio. It’s like a snowball rolling down a hill, gathering more and more snow as it goes. Before you know it, your nest egg can grow into a full-blown financial fortress.
Sienna stock
Imagine a retirement where your investments not only grow but also support a business you believe in. Intrigued? Let’s dive into the facts and figures that make Sienna Senior Living (TSX:SIA) a must-have for your golden years.
This company specializes in providing top-notch senior living facilities, ensuring that residents enjoy comfort, care, and a sense of community. But it gets better. Sienna Senior Living reported robust revenue growth of 12% year-over-year, reaching an impressive $250 million. This steady climb isn’t just a fluke; it’s a testament to their strategic expansions and high occupancy rates. With more seniors seeking quality living spaces, Sienna is perfectly positioned to capture this growing market.
Now, let’s talk dividends, because who doesn’t love a steady stream of income? Sienna Senior Living offers an attractive dividend yield of 6.6%. This means for every $1,000 you invest, you’re pocketing $66 annually. Not too shabby, especially when you consider the stability of the senior housing market. Plus, Sienna’s payout ratio is a healthy 70%, indicating that they’re not overextending themselves to pay dividends. They have a strong balance sheet with a debt-to-equity ratio of 0.8, showcasing their prudent financial management. This means they’re balancing growth with sustainability, ensuring that they can continue to reward shareholders without compromising their financial health.
Freehold Royalties
Now let’s talk about a golden opportunity on the TSX that could make your retirement not just comfortable, but downright luxurious: Freehold Royalties (TSX:FRU). Freehold Royalties is a cash flow king.
This company owns oil and gas royalties, meaning they earn money from the production of energy resources without the hefty costs of extraction and production. It’s like owning a slice of a very profitable pie! In their latest earnings report, Freehold Royalties posted impressive revenue of $400 million, marking a 15% increase from the previous year.
Furthermore, Freehold Royalties boasts a mouth-watering dividend yield of 7.9%. For every $1,000 you invest, you’re raking in $78.90 annually. That’s a pretty sweet deal, especially when you consider the reliability of the oil and gas sector. With energy prices often riding high, those dividends are likely to keep flowing your way.
But the fun doesn’t stop there. Freehold’s payout ratio is a conservative 60%, indicating they’re distributing earnings responsibly while retaining enough to fuel future growth. Their balance sheet is rock solid, with a debt-to-equity ratio of just 0.4, showcasing their financial prudence and stability. This means they’re not only paying you well now but are also positioned to keep those payments coming for the long haul.
Bottom line
So, retirees, why settle for ordinary investments when you can have the excitement and rewards of Sienna Senior Living and Freehold Royalties? These stocks offer high yields, solid financial health, and the peace of mind that comes with supporting essential services and diversified energy resources. It’s time to let your investments work as hard as you did all those years and make your retirement truly golden!
The post Retirees: 2 High-Yield Dividend Stocks to Buy in July appeared first on The Motley Fool Canada.
Should you invest $1,000 in Freehold Royalties Ltd. right now?
Before you buy stock in Freehold Royalties Ltd., consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Freehold Royalties Ltd. wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $16,110.59!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.
See the 10 stocks * Returns as of 6/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties. The Motley Fool has a disclosure policy.
2024
