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Income investors can go all out in 2022 and earn massive dividends from three high-yield stocks. MCAN Mortgage (TSX:MKP), Doman Building Materials Group (TSX:DBM), and Fiera Capital (TSX:FSZ) average an eye-popping 8.08% dividend. A $10,000 investment in each will produce a total of $2,424.90 in passive income.

The dividend payments are high, but you must understand the respective businesses and evaluate how they adapt to the current environment. You’re taking a calculated risk, because the small-cap stocks aren’t mediocre but steady performers on the TSX thus far in 2021.

Alternative lender

MCAN Mortgage has had a great year after three quarters in 2021. The $472.19 million mortgage investment corporation reported a net income of $48.3 million, or a 132% increase versus the same period in 2020. In Q3 2021, however, net income dropped 42.73% to $13 million year over year due to lower mortgage origination and processing fees plus reduced non-recurring new contracts.

Karen Weaver, MCAN’s president and CEO, said, “We are very pleased with our strong year-to-date results. Our mortgage originations continue to be strong, and our portfolio continues to grow.” She boasted about MCAN’s winning the Canadian Mortgage Professional’s 5-Star Mortgage Products Award in the Alternative Lending Category. The stock trades at $17.08 (+14.69% year to date) and pays a 7.91% dividend.

Unfolding growth strategy

According to Amar S. Doman, chairman of the board of Doman Building Materials, the company’s growth strategy continues to unfold in 2021. He said, “With pricing stabilizing late in the third quarter, we are optimistic that the above-average volatility we have experienced in recent months may be behind us.”

Mr. Doman believes the improved business condition enables the company to leverage top-line growth and economies of scale and stabilize margins at its target levels in the ensuing quarters. After three quarters in 2021 (nine months ended September 30, 2021), net earnings hit $94.9 million, and the year-over-year growth was an incredible 112.89%.  

The $591.21 million company distributes building materials in North America. Doman prides itself as the only fully integrated national distributor in building materials and related products in Canada. It has two specialty planing mills, five specialty sawmills, and 19 treating plants in eight states in America. The share price is $6.99 (-4.32% year to date), while the dividend yield is 8.07% if you invest today.

Multiple successes

Fiera Capital is a $1.06 billion independent asset management firm with a growing global presence. As of September 30, 2021, its assets under management (AUM) were $180.8 billion. The share price of $10.25 is value for money considering the fantastic dividend offer of 8.27%.

After three quarters this year, total revenue increased slightly by 1.74% to $507.94 million versus the same period in 2020. However, net earnings growth was a whopping 1,362.1%. Jean-Guy Desjardins, Fiera’s chairman of the board and CEO, said, “The last 18 months have been characterized by multiple successes at Fiera Capital against the backdrop of an uncertain economic environment.”

Because of the outstanding business performance, Fiera raised its dividend by 2.4%. The yield was constant and unchanged throughout 2019 and 2020.

Cash cows

MCAN Mortgage, Doman Building, and Fiera Capital are pure dividend plays. You can invest in all three to have a farm of cash cows in 2022.

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