Income investors are searching for quality dividend stocks to add to their portfolios.

Let’s take a look at Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) and Inter Pipeline Ltd. (TSX:IPL) to see why they might be attractive right now.

Sun Life

Sun Life took a nasty hit during the Great Recession, but the company has bounced back and is now focused on new areas of growth.

The insurer sold off its troublesome U.S. annuities business and has switched its recent investment activity toward fee-based assets. Sun Life even set up a new division, Sun Life Investment Management, to hold the latest U.S. additions to the portfolio.

These include a real estate management company and two businesses specialized in providing fixed-income solutions for clients such as insurance companies and pension funds. The revenue stream is more secure than the annuities business was and complements the existing insurance and wealth management operations.

Sun Life is also boosting its investment overseas with a specific focus on Asia. The region offers strong growth opportunities as the middle class expands and demand rises for insurance and investment products.

The company just announced the acquisition of FWD Life Insurance Company’s pension business in Hong Kong as well as a new 15-year distribution agreement with FWD to provide Sun Life pension products to FWD’s agency force.

Other recent investments include an expansion of the Birla Sun Life equity stake in India from 26% to 49% and an increase in the ownership of its Vietnam partnership from 45% to 75%.

Sun Life held its dividend steady through the financial crisis and began raising it again last year. As the new assets contribute more meaningfully to the revenue stream, investors should see the payout continue to grow. The current dividend yields 3.8%.

If you want a financial stock with a solid growth profile but are concerned about owning the banks, Sun Life is an attractive option.

Inter Pipeline

Inter Pipeline operates a natural gas liquids (NGL) extraction business, oil sands infrastructure, conventional oil pipelines, and a liquids storage division located in Europe.

The diversified revenue stream has enabled the company to weather the oil rout quite well, and new additions to the assets base are driving funds from operations higher.

The latest deal is the $1.35 billion acquisition of a Canadian NGL midstream business from The Williams Companies. The new assets provide a great complement to the existing NGL extraction business and should be immediately accretive to funds from operations when the purchase closes in the third quarter.

Inter Pipeline is getting the assets at a 45% discount to the investment Williams Canada has put into the infrastructure. Once commodity prices begin to improve, Inter Pipeline should see strong cash flow from the new division.

The stock pays a monthly distribution of $0.13 per share. That’s good for a yield of 5.6%.

Is one a better pick?

Both stocks are solid holdings. If you only have the cash to buy one, I would give Inter Pipeline the edge for the higher yield.

Stock buy alert hits astounding 96% success rate!

The hand-picked investing team inside Stock Advisor Canada recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.


Let’s not beat around the bush – energy companies performed miserably in 2015. Yet, even though the carnage was widespread, not all energy-related businesses were equally affected.

We've identified an energy company we think offers one of the best growth opportunities around. While this company is largely tied to the production of natural gas, it doesn't actually produce the gas. Instead, it provides the equipment required to get natural gas from the ground to the end user. With diversified operations around the globe, we think it's a rare find in the industry.

We like it so much, we’ve named it as 1 Top Stock for 2016 and Beyond. To find out why, simply enter your email address below to claim your FREE copy of this brand new report, "1 Top Stock for 2016 and Beyond"!

Fool contributor Andrew Walker has no position in any stocks mentioned.