Motley Fool investors continue to find it hard to discover growth opportunities on the TSX today. While there certainly are stocks out there to choose from, it’s clear that we still are in a volatile situation.

The Bank of Canada just increased interest rates by another 50 basis points. The Federal Reserve could very well raise the American rate again, and some believe we’ll end up with a new rate up 3% by the end of 2022. With all that in mind, it can be hard to consider investing with what little cash we have after inflation.

But today, I’m going to recommend a strong dividend stock that has solid growth ahead of it. This company offers a substantial 7% dividend yield, all while providing solid passive income. So, let’s see why you may want to invest today.

Chemtrade stock

Chemtrade Logistics Income Fund (TSX:CHE.UN) is an industrial chemicals and services provider. Chemtrade stock operates throughout North and South America, providing chemicals that are used to clean at an industrial level.

It’s the word industrial that should really interest investors. There has been a massive shift to get production up and running once more for Chemtrade stock and includes in these large production companies that need cleaning regularly. This has produced a return to normal levels that should be reached by 2023, according to analysts.

During its most recent quarter, this was realized, with a year-over-year increase of $77.9 million in revenue to $390.3 million for the first quarter of 2022. Earnings jumped to $10.7 million from a loss the year before, and adjusted EBITDA reached $107.8 million. This allowed Chemtrade stock to boost its guidance to between $300 and $330 million for adjusted EBITDA.

Value in reach

That great news allowed Chemtrade stock to see a boost in share price — especially as the recovery continues on the TSX today. It currently trades at 2.13 times book value and 14.68 in enterprise value over EBITDA.

Chemtrade stock is also one of the few stocks actually up year to date, currently seeing shares increase by about 15% since the beginning of 2022. But shares have come down from 2022 highs by about 4% offering a great jump-in point. And since mid-May, shares are currently up 16%! And it’s still within reach of its current consensus target price of $9.75 by analysts. That’s a potential upside of another 16%.

The dividend

Chemtrade stock currently offers an insane dividend yield of 7%. This comes out as $0.05 on a monthly basis and $0.60 on an annual basis. During the last decade, passive income remained stable. However, the pandemic forced the stock to cut its dividend in half. But that means there could be a jump back to the $1.20 we saw before the pandemic hit. That would mean a two-fold boost in your dividends!

In fact, before then, there hadn’t been any dividend movement since the last recession. So, you could look forward to at least the 7% yield as of writing for the next decade from Chemtrade stock, if not far more.

Foolish takeaway

If a Motley Fool investor were to invest $20,000 in Chemtrade stock today, you could look forward to several things. First, that would bring in passive income of $1,428 each and every year at these rates. That could easily turn into $2,857, as the company returns to normal.

Furthermore, Motley Fool investors could see their shares grow at the stock recovers to its target price. That alone would turn a $20,000 investment into $23,214. All in all, by the end of the year, you could have returns of at least $4,642.29 in 2022 alone.

The post 1 Dividend Stock Yielding 7% for Stable Passive Income and Growth appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.