5 Top Dividend Stocks to Hold Through Market Cycles

Don’t worry about these stocks when the markets gyrate unpredictably.

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The Motley Fool

The more things change, the more things remain the same. Despite market volatility, these stocks should continue to provide you a good return on investment.

1. BCE

BCE (TSX: BCE)(NYSE: BCE) has a current dividend yield of 5.00% and its annual payout is $2.47. BCE is Canada’s largest communications company and its revenue comes from Bell Wireline (47%), Bell Wireless (28%), Bell Media (13%), and Bell Aliant (12%). BCE has a market capitalization of over $38 billion.

BCE owns approximately 44% of Bell Aliant’s shares. It plans to acquire the remaining shares it doesn’t hold in a deal worth approximately $4 billion. With this deal, BCE expects to enhance annual free cash flow by $200 million.

2. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) has a current dividend yield of 4.00% and its annual payout is $4.00. CIBC has a market capitalization of $40 billion.

Its business units are Retail and Business Banking, Wealth Management and Wholesale Banking. In Q2 2014, CIBC was the first bank in Canada to launch eDeposit™ for business banking customers. This allows business clients to rapidly scan, upload, and deposit a sizeable number of cheques in a single transaction using a secure desktop cheque scanner.

3. Canadian Oil Sands

Canadian Oil Sands (TSX: COS) has a current dividend yield of 5.90% and its annual payout is $1.40. The company has a 36.74% interest in the Syncrude project. Its Syncrude asset consists of large, bitumen-rich leases situated in the Athabasca oil sands deposit and a fully integrated upgrading facility. This facility produces 100% light, sweet crude oil.

For Q1 2014, Canadian Oil Sands’ cash flow from operations was $357 million versus cash flow from operations of $275 million Q1 2013. This represents a 30% increase.

4. PotashCorp

PotashCorp (TSX: POT)(NYSE: POT) has a current dividend yield of 3.80% and its annual payout is $1.40. The company produces and sells fertilizers and related industrial and feed products. PotashCorp has 20% of worldwide potash capacity at its Canadian operations. It also has ownership interests in four global potash-related businesses.

Potash Corp’s three business segments are potash, phosphate, and nitrogen. Its Q2 2014 cash from operating activities was $788 million, and $1.3 billion for the first six months of the year.

5. TransAlta

TransAlta (TSX: TA)(NYSE: TAC) has a current dividend yield of 5.70% and its annual payout is $0.72. The company is Canada’s largest publicly traded generator and marketer of electricity and renewable power. TransAlta has power plants in Canada, the U.S., and Australia.

In 2013, it surpassed its target of serving more than 600 megawatts of customers in its commercial and industrial business. In Q1 2014, TransAlta announced the formation of the Fortescue River Gas Pipeline Joint Venture. The joint venture’s first project will be to build, own, and operate a $178 million natural gas pipeline to TransAlta’s Solomon power station in Australia.

Don’t let market capriciousness worry you. Invest in top dividend-paying stocks in vital sectors that provide ROI through the good times and the bad.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Michael Ugulini has no position in any stocks mentioned. The Motley Fool owns shares of PotashCorp.

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