Part of my research for passive income opportunities led me to look at stocks and bonds that offer to produce consistent income. Currently I have a CD at the bank that will mature in July, and I would like to find a higher yielding alternative. My maturing CD had a yield of 4.15%
My search for high yielding stocks led me to a site discussing Canroys as a source of passive income. I first learned about Canadian Income Funds, or Royalty Trusts, from Living Off Dividends. These Canroys such as Harvest Energy (HTE) and Pengrowth Energy (PGH) offer a high yielding dividend of 13-15% for these oil and gas producers. Much higher than the yield of Exxon (XOM) 1.8% or Chevron (CVX) 2.7%. Exxon and Chevron are also growth or value stocks and Canroys have a set lifespan of 10-30 years. The companies payout income from oil and gas exploration and don’t reinvest, as a Chevron would. The Canroys basically have a life span of 10-30 years. These yields will be impacted based on many factors, including price of oil/gas and reserve amounts. Some of these reserves may only last 9-10 years, but this could still offer wonderful opportunity for consistent income.
Something else to consider is the current price of these stocks. The oil and gas sector is red hot now and I wouldn’t want to put all my eggs in one basket here. But, I think Canroys or other income producing stocks, could fit well with my desired passive income stream.
5 High yield income stocks that could be source of passive income:
1. Pengrowth Energy (PGH) Oil and gas exploration company based out of Calgary that currently has a yield of 13.3%
2. Frontline (FRO) Oil and natural resources shipping company based out of Bermuda. Current yield of 15.4%
3. Hugoton Royalty Trust (HGT) owns natural gas assets and currently yields 10.2%
4. Dominion Resources Black Warrior Trust (DOM) owns natural gas properties in Alabama and has a current yield of 11.4%
5. Pfizer (PFE) Huge drug company that has been beaten down and is on the list for income and potential price appreciation. Could this be a value play and a passive income opportunity? Current yield is 7.4%
If you have some stocks that are paying a good consistent dividend and high yield, let me know.