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Want Safe Dividend Income in 2024? Invest in the Following 2 Ultra-High-Yield Stocks – The Motley Fool Canada

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The dream of nearly every investor is to live off a juicy dividend income that leaves your principal intact. To the surprise of many newer investors, establishing that safe dividend income stream is easier than you think.

That’s especially true when considering these ultra-high-yield dividends which can supercharge your portfolio.

The big banks are always a great option

You can’t mention safe dividend income in 2024 without thinking about one or more of Canada’s big banks. And there’s a good reason for that view.

The banks provide a reliable revenue stream that is backed by a mature domestic segment. They also boast international growth and a juicy dividend, which collectively makes them great buy-and-forget candidates.

So then, which big bank can provide safe dividend income in 2024 and beyond? While all of the big banks do boast reliable revenue and stable growth, Canadian Imperial Bank of Commerce (TSX:CM) is a unique option for investors to consider right now.

CIBC is smaller than its peers, and by extension has a smaller international presence. This makes the bank rely more on its domestic business to drive higher earnings. It also means that during times of increased market volatility, such as the rising rate environment we’ve seen recently, the stock is more volatile than its peers.

As a result, CIBC trades near flat year to date. But as the market continues to improve, the stock has staged a recovery. As of the time of writing, the stock has surged 14% over the past year. Prospective investors should recall that investing in CIBC is a long-term play despite any shorter-term movements.

In other words, buy it, hold it, and watch it (and your safe dividend income) grow.

Perhaps the main reason why investors should consider CIBC is the juicy dividend that it offers. As of the time of writing, CIBC offers investors a yield of 5.58%. The bank also has an established precedent of providing annual upticks to that dividend.

This handily puts it onto a list of stocks to generate safe dividend income.

Some energy is what your portfolio needs

Most investors are familiar with Enbridge (TSX:ENB). The energy sector behemoth operates the largest and most complex pipeline system on the planet. That pipeline network, which contains both natural gas and crude elements, generates the bulk of Enbridge’s revenue.

But that’s not all that Enbridge does.

The company also operates a growing renewable energy portfolio of over 40 facilities. Those sites are located across North America and Europe, generating another growing (and important) revenue stream.

In fact, Enbridge has invested over $9 billion into the segment over the past two decades.

Enbridge also operates the largest natural gas utility in North America. That title comes thanks to a trio of acquisitions completed last year that boosted Enbridge’s customer count in the segment to seven million.

And like traditional utilities, both the renewable and natural gas segments are subject to long-term regulated contracts that provide a reliable and recurring revenue stream.

That revenue stream allows Enbridge to invest in growth and pay out one of the best dividends on the market. As of the time of writing, Enbridge’s quarterly dividend pays out an insane 7.47% yield.

This means that investors who drop $40,000 into Enbridge will generate an income of over $2,960.

Oh, and like CIBC, Enbridge has an established history of annual bumps to that dividend stretching back three decades.

In short, Enbridge is one of the stocks to generate a safe dividend income. The company is a well-diversified option with both growth and income-earning potential.

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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