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The Canadian economy has not been in the best shape for a long time, and investors are actively looking for additional sources of income to supplement their income. dividend investment it is perhaps one of the best ways for investors to earn passive income. The worst impact of the pandemic is over, and many people who lost their jobs now have jobs again.
Unfortunately, the inflationary environment has pushed up the prices of all goods and services. Covering your monthly expenses may require earning more money. Building a dividend income portfolio can help you achieve this goal and supplement your active income. If you invest in the right group of dividend-paying stocks, you can earn a decent amount through shareholder dividends.
Investing in high-quality dividend stocks with a history of paying regular dividends to their investors is the best way to go. However, you should also look to high-yielding dividend stocks to boost your dividend income portfolio and secure it financially when you’re next up. bear market it comes this way
There is no shortage of high-yielding dividend stocks in the TSX, but that does not mean that you can invest in any of them. It’s worth doing your due diligence to identify high-quality dividend stocks that align with your goals. You don’t just need to invest in dividend stocks with massive payouts. You also need to ensure that the underlying business has strong fundamentals to support high-yield payouts.
diversified royalty (TSX:DIV) is a high-yield dividend stock you may want to consider for this purpose. It’s not a high-priced stock, but it does come with a huge dividend yield.
Diversified Royalty stock is trading at $2.84 per share at the time of this writing. At current levels, it boasts a juicy dividend yield of 7.75%. Suppose you accumulate $55,000 of your stock in your portfolio. In that case, you can earn $4,306.50 through shareholder dividends annually, which translates to $11.79 per day.
Diversified Royalty is a multi-royalty company with a market capitalization of $353.67 million based in Vancouver. The company is in the business of acquiring royalties from some of the largest multi-location businesses and franchisors throughout North America.
The company buys the trademarks of the companies it acquires, but gives its partners the benefit of full operational control over their businesses. In turn, Diversified Royalties generates revenue by receiving royalties and administration fees from its royalty partners.
Diversifying across multiple industries and geographic locations allows the company to protect its revenue streams. It has several popular names under its belt, including Mr. Lube, AIR MILES, Oxford Learning Center, Mr. Mikes, and Sutton.
The pandemic was not easy for companies in any sector of the economy. It was only natural that Diversified Royalties would also suffer losses, and it did. The company’s net income in 2019 was $14.04 million, but the pandemic saw it suffer a net loss of $8.88 million the following year.
Fortunately, the company’s management responded quickly to the crisis. His board of directors took steps to preserve its capital and maintain a strong liquidity position, including reducing its dividend payments.
2022 has been a much better year for the company than 2020. It raised approximately $20.57 million through royalties during the first six months of the year, an increase of 24% compared to the same period last year.
Diversified Royalty’s second quarter performance in fiscal 2022 was the strongest in its history. It generated $11.1 million in adjusted revenue. The company’s distributable cash increased 19% year over year to $15.1 million.
If you want to give your dividend income portfolio a significant boost, it might be a good idea to allocate a portion of your investment capital to diversified royalty stocks.