As history has shown, owning a portfolio of dividend-paying stocks is the best way to build wealth over the long term, and this investment strategy generates the highest returns when you own stocks that raise their payouts every year. With this in mind, let’s take a look at four stocks with high and safe yields of 3-5%, active streaks of annual increases, and the ability to continue growing their payouts going forward, so you can determine if you should invest in one or more of them today.
1. TransCanada Corporation
TransCanada Corporation (TSX: TRP)(NYSE: TRP) is one of North America’s largest owners and operators of energy infrastructure. Its assets include North America’s largest natural gas pipeline network, a crude oil pipeline network, natural gas storage facilities, and power-generation facilities.
It pays a quarterly dividend of $0.565 per share, or $2.26 per share annually, giving its stock a yield of about 3.7% at current levels.
It’s also important to make the following two notes about TransCanada’s dividend.
First, it has raised its annual dividend payment for 15 consecutive years, and its 8.7% hike earlier this year has it on pace for 2016 to mark the 16th consecutive year with an increase.
Second, it has a dividend-growth target of 8-10% annually through 2020.
2. Rogers Communications Inc.
Rogers Communications Inc. (TSX: RCI.B)(NYSE: RCI) is Canada’s second-largest communications company. It provides a broad range of services to individuals and businesses, such as wireless voice and data communications, high-speed internet, cable television, and data networking.
It pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, giving its stock a yield of about 3.6% at current levels. It has also raised its annual dividend payment for 11 consecutive years, and its strong operational performance could allow it to continue this streak in 2016 by announcing a hike when it releases its second-quarter earnings results on Thursday.
3. Evertz Technologies Limited
Evertz Technologies Limited (TSX: ET) is one of the world’s leading designers, manufacturers, and marketers of video and audio infrastructure solutions for the television, telecommunications, and new-media industries. Its broadcast equipment and solutions deliver content to television sets, on-demand services, WebTV, IPTV, and mobile devices, such as phones and tablets.
It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, giving its stock a yield of about 4.3% at current levels. It has also raised its annual dividend payment for six consecutive fiscal years, and its very strong financial performance in fiscal 2016 could allow it to continue this streak in fiscal 2017.
4. Fiera Capital Corp.
Fiera Capital Corp. (TSX: FSZ) is one of North America’s largest independent asset managers with about $98 billion in assets under management. It offers a wide range of traditional and alternative investment solutions to individuals, institutions, pension funds, foundations, mutual funds, and religious and charitable organizations.
It pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, giving its stock a yield of about 4.7% at current levels. It has also raised its annual dividend payment for five consecutive years, and its three hikes since the start of 2015 have it on pace for 2016 to mark the sixth consecutive year with an increase.
