Author Archives: Passive Income Earner

What’s Wrong with Manulife stock’s Big Dividend?

When the World Health Organization announced that the world was experiencing a pandemic around March 2020, the regulator tightened restrictions to prevent federally regulated financial institutions like Manulife (TSX:MFC)(NYSE:MFC) from increasing their dividends. This is why the life and health insurance company froze its dividend for eight consecutive quarters.

When the regulator lifted the ban about a month ago, Manulife quickly announced a dividend increase of almost 17.9%. Its new quarterly dividend is C$0.33 per share, equating to an annualized payout of C$1.32 per share. The negative sentiment around the stock market in the last week pressured this dividend stock lower. Consequently, investors can now buy shares for a juicy dividend yield that’s flirting with 5.7%.

The dividend stock is not a darling

For some reason, Manulife stock tends to trade at a substantial discount to its peer, Sun Life (TSX:SLF)(NYSE:SLF). Maybe it’s because of their different business mix. Sun Life’s business is much more diversified, leading to more quality earnings. Here’s an overview of Sun Life’s net income diversification.

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What Investors Love About This 5.9% Big Dividend Healthcare REIT

Last week, we discussed 9.5%-yield Omega Healthcare (NYSE:OHI), its different dividend cut scenarios, and its potential returns as a result.

This week, we’re looking at another healthcare REIT, NorthWest Healthcare Properties REIT (TSX:NWH.UN). It attracts income investors in multiple ways. First, it pays a big dividend through a monthly payout. Second, the healthcare REIT’s international portfolio provides a unique offering. Third, it recently demonstrated that it can grow its net asset value per unit (NAVPU).

hospital hallway

Get a big dividend from this healthcare REIT

Any income investor would love to get a big paycheque every month. NorthWest Healthcare Properties REIT currently offers a yield of almost 5.9%. It has maintained the same annualized payout of $0.80 per unit since 2012.

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Big Dividends are So Tempting! Is This Dividend Stock Good?

Big dividend stocks are tempting. Who doesn’t want to buy shares of a company and sit back to enjoy juicy passive income? Stock investing is not so simple, though. Big dividend yields can be cut.

As a dividend investor who targets extraordinary total returns, I sometimes battle between getting a nice dividend income and a high expected total return. Sometimes, investors can get the best of both worlds, though. When it’s clear a nice dividend stock could deliver high returns, it’s easy to make an investment decision. Other times, the market has given a clear signal that a high yield dividend stock’s dividend could be in danger. Usually, slow growth piggyback on high yield stocks.

Here’s a high-yield dividend stock you might have looked at over the last year.

A dividend stock with a +9% yield

Honestly, I have been tempted by Omega Healthcare (NYSE:OHI) juicy yield in the last month or so. Currently, it almost yields 9.2%! However, my investment decision doesn’t entirely depend on the +9% yield, because there’s the danger that the healthcare REIT could cut its yield to lower levels. Therefore, if I buy the dividend stock, it wouldn’t only be for the dividend, it’ll also need to be a good total-return investment.

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