3 Dividend Aristocrats Yielding Over 4%

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR), CI Financial Corp. (TSX:CIX), and Emera Inc. (TSX:EMA) have yields over 4% and track records of increasing their rates. Which should you buy today?

| More on:
The Motley Fool

Whether you just opened your first brokerage account or have been investing for decades, you must own at least one dividend-paying stock, because they far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three stocks with yields over 4% and extensive track records of increasing their rates, so you can determine which would fit best in your portfolio.

1. Shaw Communications Inc.

Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) is one of the largest communication and media companies in Canada, serving approximately 3.2 million customers. It pays a monthly dividend of $0.09875, or $1.185 per share annually, giving its stock a 4.95% yield at today’s levels.

It is also very important for investors to make two notes. First, Shaw has raised its annual dividend payment for 12 consecutive years, and its 7.7% increase in March puts it on pace for 2016 to mark the 13th consecutive year with an increase. Second, the company traditionally increases its dividend in January each year, effective for its March payment, and its ample free cash flow generation, including $653 million in fiscal 2015, could allow it to continue this tradition in 2016.

2. CI Financial Corp.

CI Financial Corp. (TSX:CIX) is the third-largest investment fund company in Canada with approximately $108.3 billion in assets under management. It pays a monthly dividend of $0.11 per share, or $1.32 per share annually, giving its stock a 4.2% yield at today’s levels.

Investors must also make two important notes. First, CI Financial has raised its annual dividend payment for six consecutive years, and its 4.8% increase in June puts it on pace for 2016 to mark the seventh consecutive year with an increase. Second, the company’s increased amount of free cash flow, including 11.2% year-over-year growth to $454.9 million in the first nine months of fiscal 2015, could allow for another increase in 2016.

3. Emera Inc.

Emera Inc. (TSX:EMA) is one of the largest electric utilities companies in North America. It pays a quarterly dividend of $0.475 per share, or $1.90 per share annually, giving its stock a 4.35% yield at today’s levels.

Investors must also make two very important notes. First, Emera has raised its annual dividend payment for nine consecutive years, and its recent increases, including a 3.2% increase in February and an 18.8% increase in August, puts it on pace for 2016 to mark the 10th consecutive year with an increase. Second, the company has a dividend-growth program in place to raise it by another 8% annually through 2019.

Does one of these high yielders belong in your portfolio?

Shaw Communications, CI Financial, and Emera are three of the most attractive dividend-growth plays in their respective industries. All Foolish investors should strongly consider initiating positions in at least one of them today.

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 Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

young woman celebrating a victory while working with mobile phone in the office
Dividend Stocks

3 CRA Benefits Most Canadians Can Grab in 2024

You can save on taxes by claiming the dividend tax credit on Fortis Inc (TSX:FTS) shares.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »