Don't let taxes eat up your investment income: 3 high-yield stocks that are perfect for your TFSA

Canadian Imperial Bank of Commerce (CM)

Yes, Canadian banks have historically fallen during downturns. That’s remained true for Canadian Imperial Bank of Commerce, which is currently down by 22% in the last year.

However, Canadian banks, including CIBC, have provisions for loan losses. These come into play right now, when Canadians take out fewer loans as interest rates continue to rise.

But even in recessions, CIBC has proven it can reach pre-fall prices within a year’s time.

What’s more, CIBC has been expanding rapidly, going through an overhaul of its business to gain and retain far more clients. The $52.25-billion company operates mainly in retail and business banking, as well as wealth management and capital markets. Yet it’s this focus that’s led to more clients, with 17 million customers choosing the bank above the other Big Five.

CIBC currently offers a dividend yield at 5.89%.

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NorthWest Healthcare Properties REIT (NWH)

If you’re looking at high yield income, you’re likely going to hear about real estate investment trusts (REIT). That’s because REITs pay out a significant portion of their taxable income to investors. Yet this could suddenly lead to a dividend decrease during a downturn, with interest rates creating higher payments.

However, that’s not the case for safe sectors such as healthcare. That’s why NorthWest REIT is an option. It provides diversified income for investors, as it operates healthcare properties around the world. This includes everything from hospitals to office buildings, with the company now boasting a market capitalization close to $2 billion.

The thing is, NorthWest REIT is quite new. So it doesn’t have the history of coming back after recessions that other companies might have. Shares are down 38% in the last year, and 11% year-to-date.

However, its properties have a 97% occupancy rate and an average lease agreement of 14 years, plus the current annual dividend yield of 9.48% is pretty enticing. What’s more, their dividend comes out every month.

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Fiera Capital (FSZ)

For a cheap stock with a super-high yield, you may have already come across Fiera Capital.

This investment company invests primarily in value and growth stocks. The asset management firm also offers its services to private wealth clients, operating in Canada, the United States, Europe and elsewhere. The majority of revenue of this $787.2-million company comes from the United States.

Shares are down about 26% in the last year and 12% year-to-date. Yet, even when the company slumps, as it did back in the Great Recession, it continues to maintain dividend payments. Currently, it pays out an ultra-high 11.13% dividend yield.