Investing in dividend-paying mid-cap stocks can be a smart strategy for generating reliable passive income. While many investors tend to focus on large-cap blue-chip stocks, mid-cap stocks offer a balance between stability and growth potential. Three Canadian stocks that stand out in this category are Exchange Income (TSX:EIF), Northland Power (TSX:NPI), and Fiera Capital (TSX:FSZ). Each of these dividend stocks has a strong dividend history and presents compelling opportunities for investors looking to build passive income.
Exchange Income is a diversified acquisition-oriented dividend stock with operations in aerospace, aviation services, and manufacturing. Despite reporting lower-than-expected earnings per share in the fourth quarter of 2024, the company has a reputation for strong cash flow and reliable dividend payouts. With a forward annual dividend rate of $2.64 per share, Exchange Income offers a dividend yield of approximately 5.24%.
Northland Power is a leader in renewable energy, developing and operating clean power projects worldwide. While the company saw a decline in revenue in the fourth quarter of 2024, its net income improved significantly, signaling stronger financial footing. Northland Power has a forward annual dividend rate of $1.20 per share, yielding approximately 6.04%.
Fiera Capital is an independent asset management firm known for consistently rewarding investors with high dividend payouts. Despite falling short of analysts’ earnings projections in the fourth quarter, Fiera Capital maintains a generous dividend of $0.86 per share annually, resulting in a dividend yield of 13.35%, one of the highest among Canadian dividend stocks.
For investors looking to invest $25,000 in dividend stocks, these three mid-cap companies offer a range of risk and reward profiles. Exchange Income Corporation provides a balance of growth and income, Northland Power offers exposure to the growing renewable energy sector, and Fiera Capital delivers a high dividend yield, albeit with some earnings concerns.
By splitting their $25,000 investment across these three stocks, investors can generate a diversified passive-income stream. Each stock has its own strengths and challenges, so it’s essential to consider risk tolerance and long-term financial goals. By carefully selecting dividend stocks that align with income needs and growth potential, investors can build a portfolio that not only generates regular cash flow but also has the potential for capital appreciation.
Ultimately, investing in dividend stocks is about more than just the yield. It’s about finding companies with sustainable business models that can continue paying dividends for years to come. Exchange Income, Northland Power, and Fiera Capital each provide opportunities for passive income. By staying informed and diversifying across strong mid-cap dividend stocks, investors can position themselves for long-term financial success.
