SIA to BDT: 7 TSX stocks under $15 to source passive income

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SIA to BDT: 7 TSX stocks under $15 to source passive income

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 SIA to BDT: 7 TSX stocks under $15 to source passive income
Image source: © 2022 Kalkine Media®

Highlights

  • Sienna Senior Living had a dividend yield of about seven per cent
  • Extendicare improved its net income to C$ 71.39 million in Q2 2022 
  • Freehold Royalties stock zoomed by nearly 57 per cent in 12 months

Canadians focused on building a stable passive income stream can explore quality TSX stocks like Sienna Senior (TSX: SIA), Freehold Royalties (TSX: FRU), and Superior Plus (TSX: SPB), which possess high dividend yield (a financial indicator that represents the annual dividend pay-out by a given company relative to its present stock price).

The US Federal Reserve, during Friday's meeting, signaled that interest rates might keep rising until inflation cools down, which seems to have broadly affected stock markets. The TSX Composite Index, for one, dropped by 299.05 points to 19,873.29 on August 26 in the face of rate hike worries.

Income seekers can explore the following seven TSX dividend stocks priced under C$ 15, chosen by Kalkine Media®, that can help them generate stable passive income amid the current market dynamics.

1.     Sienna Senior Living Inc (TSX: SIA)

Sienna Senior had a dividend yield of about seven per cent. The small-cap company functions as a long-term care operator for senior citizens in Canada. Sienna saw its net operating income (NOI) climb 10.3 per cent year-over-year (YoY) to C$ 34.2 million in the second quarter of 2022. 

Sienna Senior stock rose by three per cent quarter-to-date (QTD). As per Refinitiv findings, the SIA stock recorded a Relative Strength Index (RSI) value of 45.29, signaling a moderate momentum, on August 26.

2.     Extendicare Inc (TSX: EXE)

Extendicare recorded a dividend yield of 6.64 per cent. Besides this, Extendicare posted C$ 296.58 million in revenue in Q2 2022, relatively high from C$ 281.69 million in Q2 2021. The small-cap operator of long-term care facilities saw an improved net income of C$ 71.39 million in the second quarter this year compared to C$ 0.96 million in the previous year’s second quarter.

Extendicare stock gained almost six per cent in nine months. The EXE stock appears to be on a moderate trend as its RSI value was 41.56 on August 26, as per Refinitiv data.

SIA to BDT: 7 TSX stocks under $15 to source passive income©Kalkine Media®; ©Garis Studio via Canva.com

3.     Aecon Group Inc (TSX: ARE)

Aecon Group’s dividend yield was 6.64 per cent. The Toronto-headquartered firm reported revenue of C$ 1.12 million in Q2 2022, which was 16 per cent higher than that of Q2 2022.

Aecon posted an increased backlog of C$ 6.6 billion at the end of Q2 2022 against that of C$ 6.52 billion in the same period a year ago. 

Aecon stock grew by over five per cent from a 52-week low of C$ 10.57 (hit on August 2). ARE stock decreased by about 12 per cent in one month. As per Refinitiv, the ARE stock had an RSI value of 40.42 on August 26.

4.     Superior Plus Corp (TSX: SPB)

The mid-cap utility company said that its revenue reached C$ 628.6 million in Q2 2022, comparatively above C$ 365.6 million in Q2 2021. Superior Plus improved its gross profit to C$ 194.5 million in the latest quarter relative to C$ 149.1 million in Q2 2021.

Net loss from continuing operations amounted to C$ 85 million in Q2 2022 than that of C$ 36.1 million a year ago. On the contrary, the utility provider saw its net income from continuing operations surge year-to-date (YTD) to C$ 56 million for the six months ended on June 30.

Superior Plus stock slipped by almost three per cent month-to-date (MTD). SPB stock seems to be on a consolidated trend since mid-June as, on August 26, it held an RSI value of 45.8.

5.     Corus Entertainment Inc (TSX: CJR.B)

Corus Entertainment said that its television revenue increased by six per cent to C$ 404.13 million in Q3 2022 from C$ 379.82 million in the third quarter a year ago. The small-cap media company posted a double-digit growth of 27 per cent YoY in its radio revenue of C$ 29.32 million in the latest quarter. As a result, its consolidated revenue increased by eight per cent YoY to C$ 433.45 million in the second quarter of this fiscal year.

The media diversified firm held a dividend yield of over six pr cent. As for its stock performance, Corus scrip spiked by about seven per cent QTD. According to Refinitiv data, the CJR.B scrip had an RSI value of 47.06 on August 26.

6.     Freehold Royalties Ltd (TSX: FRU)

Freehold Royalties is a mid-cap company focused on the oil and gas royalties business. The energy company recorded a dividend yield of over seven per cent. On the financial front, Freehold Royalties reduced its net debt by 19 per cent YoY to C$ 33.1 million in Q2 2022. The energy royalty company posted funds from operations of C$ 83.8 million in the latest quarter, denoting a triple-digit increase of 109 per cent from Q2 2021.

Freehold Royalties stock zoomed by nearly 57 per cent in 12 months. According to Refinitiv information, the FRU stock had an RSI value of 58.16 (reflecting a medium-to-high momentum) on August 26.

7.     Bird Construction Inc (TSX: BDT)

Bird Construction is a small company which acts as a general contractor in Canada’s construction market. Bird posted a construction revenue of C$ 576.68 million in Q2 2022, reflecting a 3.7 per cent rise from C$ 556.36 million in Q2 2021. The Canadian construction firm also posted a growing net profit of C$ 14.1 million in the latest quarter compared to C$ 13.63 million in Q2 2021.

Bird Construction stock hit a 52-week low of C$ 6.86 on August 26. The construction stock decreased by over 26 per cent in one year. As per Refinitiv, the BDT stock held an RSI value of 40.07 on August 26.

Bottomline

Ensuring a regular flow of passive income could help investors in the ongoing market environment where interest rates are likely to stay high until inflation comes down to a target of two per cent. Hence, investors can explore these under C$ 15 TSX stocks to enhance their passive income stream.

Please note, the above content constitutes a very preliminary observation based on the industry, 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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