2 TSX dividend stocks to tackle 7.7% inflation rate: LIF & CHE

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2 TSX dividend stocks to tackle 7.7% inflation rate: LIF & CHE

 2 TSX dividend stocks to tackle 7.7% inflation rate: LIF & CHE
Image source: © Bakhtiarzein | Megapixl.com

Highlights

  • Notably, the dividend yield of LIF stock is 11.6 per cent.
  • The pandemic had little effect on economy, but battling inflation seems more difficult.
  • The Chemtrade (CHE) stock has returned around seven per cent year-to-date (YTD)

The COVID-19 pandemic had little effect on the Canadian economy, but battling unchecked inflation seems more difficult. A massive rate hike by the central bank in Canada is expected on July 13 as the inflation rate climbed to 7.7 per cent in May.

Policymakers are currently playing catch-up, and many believe rapid hikes could trigger a recession. In the meantime, many investors are now concentrating on businesses that offer dividends.

Dividend stocks might reduce the negative effects of rising inflation on purchasing power as they offer consistent cash flows. If you are looking for dividend stocks to beat inflation, these stocks might be worth considering for diversifying your portfolio:

Labrador Iron Ore Royalty Corporation (TSX:LIF)

The Canadian corporation earns its revenues through commission interests and investment in Iron Ore Company of Canada. Labrador Iron is a well-known dividend stock due to its frequent pay-outs and high dividend yield.

Notably, the iron corporation's dividend yield is 11.6 per cent, and it announced a quarterly dividend of C$ 0.9 per share. The dividend would be payable on July 26.

In Q1 2022, the royalty revenue amounted to C$ 53.7 million, and the equity earnings from Iron Ore Company were C$ 40.4 million.

Canada dividend yield stocks

Chemtrade Logistics Income Fund (TSX:CHE.UN)

In North America and around the world, Chemtrade offers industrial chemicals and services. The $828.5 million firms are also among the biggest sulphuric acid suppliers. Industrial services, including treating waste streams and by-products, are one of its affiliated industries.

The Chemtrade stock has returned around seven per cent year-to-date (YTD) and 18.3 per cent in a year. Notably, the CHE stock holds a dividend yield of 7.3 per cent.

Chemtrade's financials had a massive turnaround in Q1 2022 as its revenue increased to C$ 390.3 million, up by C$ 77.9 million from Q1 2021.

Meanwhile, it posted net earnings of C$ 10.68 million compared to a net loss of C$ 20.44 million in Q1 2021.

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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