Pizza Pizza Royalty (TSX:PZA) and A&W (*2*) (TSX:AW.UN) are two fast-food royalty funds that few Canadian buyers have ever heard of. Make no mistake, Pizza Pizza (or Pizza 73, because it’s recognized on the west coast) and A&W are well-known, well-established fast-food manufacturers in Canada. Still, shares have flown underneath the radar of all however probably the most income-savvy of buyers.Big yields, nice prospectsShares of each corporations have been fairly turbulent amid the COVID-19 pandemic. With a return to normalcy in sight, although, I imagine each names are value loading up on earlier than the nice reopening kicks in. At the time of writing, Pizza Pizza and A&W sport yields of 6.2% and 4.4%, respectively.Passive revenue choose #1: Pizza Pizza RoyaltyPizza Pizza held its personal fairly effectively through the worst of COVID-induced lockdowns. Still, as lockdowns elevate, many individuals who’ve grown sick of ordering pizza will likely be making up for misplaced time at their native eateries. The pizza hangover may act as an overhang on shares effectively into the post-pandemic surroundings.Still, I discover the mouth-watering 6.2%-yielding distribution to be effectively definitely worth the worth of admission if greater yields are what you search.Shares stay off over 40% from their 2017 highs. Like the low-priced pizza that Pizza Pizza sells, PZA inventory represents an unimaginable worth. The demand for pizza will fluctuate, however there’ll all the time be demand for that juicy pepperoni with cheese, particularly throughout hockey night time.In due time, the post-pandemic pizza hangover will wane and Pizza Pizza will likely be again to raking within the money and paying out good-looking royalties.Moreover, Bill Ackman lately took an enormous slice out of pizza peer Domino’s, which, I imagine, is a big vote of confidence for the pizza within the post-pandemic surroundings. Personally, I feel Pizza Pizza is a less expensive manner for Canadians to play the pizza scene.That stated, I do want the corporate invested extra in technological initiatives as Domino’s has. The platform, I’ve discovered, is much less spectacular than among the different pizza giants on the market.Story continuesPassive revenue choose #2: A&W RoyaltyA&W is a superb burger joint that shed over 46% of its worth through the coronavirus crash. If to procure and held in the meanwhile of panic, you’re in all probability delighted with the 78% in positive factors since these early-2020 lows. Things had been scary again then, as the corporate was compelled to quickly shutter almost 1,000 eating places throughout the nation.Today, A&W inventory is off 22% from its 2019 all-time excessive — a degree I feel may very well be hit over the following 18 months, as eating rooms reopen and folks head again to their favorite burger joint.Fellow Fool contributor Kay Ng is an enormous fan of the A&W Royalty fund forward of {the summertime} reopening. The 4.4%-yielding distribution might not be probably the most bountiful, however by way of stability and model energy, it’s exhausting to match A&W.As such, for those who’re a fan of the model and the burger household, I’m not in opposition to backing up the truck on a sizeable place at these modest costs, given the potential tailwinds up forward.The submit 2 Top Canadian Passive Income Stocks to Buy Today appeared first on The Motley Fool Canada.Speaking of respectable worth, try these companies curated by the staff right here on the Motley Fool Canada!Just Released! 5 Stocks Under $49 (FREE REPORT)Motley Fool Canada’s market-beating staff has simply launched a brand-new FREE report revealing 5 “filth low cost” shares which you could purchase at this time for underneath $49 a share.Our staff thinks these 5 shares are critically undervalued, however extra importantly, may probably make Canadian buyers who act shortly a fortune.Don’t miss out! Simply click on the hyperlink under to seize your free copy and uncover all 5 of those shares now.Claim your FREE 5-stock report now!More studyingFool contributor Joey Frenette has no place in any of the shares talked about. The Motley Fool owns shares of and recommends PIZZA PIZZA ROYALTY CORP. 2021
2 Top Canadian Passive Income Stocks to Buy Today
