Labrador Iron Ore and Timbercreek Financial are two high-yielding Canadian dividend stocks with ex-dividend dates approaching soon. We used the TipRanks Stock Screener tool for Canadian stocks to select these two stocks with over 5% dividend yield. Investing in dividend stocks is one of the best ways to diversify your portfolio while earning regular income. Dividend-paying stocks reward shareholders by offering both dividends and share price appreciation potential over time.
Labrador Iron Ore Royalty Corporation (TSE:LIF)
Labrador Iron Ore Royalty Corporation is an investment company holding a 15.10% equity interest in the Iron Ore Company of Canada (IOC). IOC is a North American producer of premium iron ore pellets and high-grade concentrate. LIF gives its investors exposure to the iron ore market through its minority interest in IOC.
Plus, LIF earns a 7% gross overriding royalty and a 10 cent per tonne commission on goods produced and sold by IOC.
LIF pays quarterly cash dividends of varying amounts from its net income. The upcoming dividend of C$1.10 per share is payable on July 26 and reflects an impressive yield of 8.59%.
In Q1 FY24, LIF royalty revenue jumped 20% year-over-year, while equity earnings from IOC spiked 57.3% over the prior year period. Also, earnings per share (EPS) increased 36% to C$0.93.
Looking ahead, the company cited the ongoing uncertainty in the global demand for steel and accelerated iron ore shipments from Brazil as reasons for lower iron ore prices.
Is LIF Stock a Good Buy?
With one Buy and two Hold ratings, LIF stock has a Moderate Buy consensus rating on TipRanks. The average Labrador Iron Ore Royalty Corporation price target of C$33.67 implies 16.5% upside potential from current levels. Meanwhile, LIF shares have lost 4.6% so far in 2024.
Timbercreek Financial Corp. (TSE:TF)
Timbercreek Financial is a non-bank lending financial institution that offers shorter-duration structured financing solutions to commercial real estate investors. The company invests in high-quality structured mortgage loans that are secured by stable, income-producing commercial real estate, such as multi-residential, office, and retail buildings located in urban markets across Canada.
Remarkably, TF pays a regular monthly dividend of C$0.0575 per share, carrying a hefty current yield of 9.64%.
As of March 31, 2024, TF’s Net Mortgage Investments portfolio rose 3.3% sequentially to C$977.55 million. Meanwhile, net investment income fell by 24.8% year-over-year as the company repaid the larger Quebec City portfolio of loans in early January 2024. Management highlighted that the company continues to efficiently manage its loans to optimize shareholders’ returns.
Is Timbercreek Financial a Good Stock to Buy?
With one Buy versus one Hold rating, TF has a Moderate Buy consensus rating on TipRanks. The average Timbercreek Financial price target of C$7.95 implies 11.7% upside potential from current levels. Year-to-date, TF shares have gained 12.7%.
Key Takeaways
Investing in dividend-paying stocks is one of the best ways to boost your portfolio income. The high-yield Canadian dividend stocks discussed above offer above-industry average dividend yields and could be considered by investors after thorough research.
