3 Healthy Dividend Yields for a Diversified Portfolio

Diversify your portfolio with solid companies and dividend yields approaching 4%.

| More on:

Diversification in investing is your hedge against significant downturns in one particular sector. Consider these diverse dividend payers to earn consistent income for your portfolio.

1. Power Corp. of Canada 

A diversified global management and holding company, Power Corp. of Canada (TSX: POW) has interests in businesses in communications, financial services, and other commercial sectors. Its companies include Power Financial (TSX: PWF), Great-West Lifeco (TSX: GWO), IGM Financial (TSX: IGM), Pargesa Holding, and Square Victoria Communications Group. The company also holds and manages an investment portfolio.

Power Corp. has established a new investment platform through a wholly owned subsidiary called Power Energy. This subsidiary’s goal is to invest in the renewable energy sector.

In 2013, Power Corp. had $650 billion in consolidated assets and assets under management. Its five-year average dividend yield is 4.30%. Its current dividend yield is 3.90%. The company’s dividend rate is $1.16. Total dividends declared in 2013 were $586 million.

2. Sun Life Financial

Sun Life Financial (TSX: SLF)(NYSE: SLF) manages assets of $590 billion worldwide. A current focus of the company is to grow its investment in Indonesia and Malaysia. It plans for its income contribution from Asia to reach 12% by 2015 versus its current 10%. Sun Life’s largest market in Asia is India. Kevin Strain, president of Sun Life Financial Asia, said, “From a growth percentage, Indonesia and Malaysia will grow faster than India, but India is a big and sophisticated business. We should see some of that growth coming back.”

Last month, Sun Life Financial announced a quarterly dividend of $0.36 per common share, payable June 30, 2014. The company’s current dividend yield is 3.80% with a dividend rate of $1.44. Sun Life’s five-year average dividend yield is 5.10%.

3. Thomson Reuters

Thomson Reuters (TSX: TRI)(NYSE: TRI) distributes vital information to top decision makers in the financial and risk, legal, tax and accounting, IP and science, and media markets. Recently, the company reported higher-than-expected quarterly earnings. This was in part due to cost-cutting measures. Most of its revenue comes from financial institutions and law firms. Its overall revenue from ongoing businesses grew 1% to $3.1 billion for Q1 2014.

Recently, Thomson Reuters won three categories at the Inside Market Data and Inside Reference Data Awards: Best Foreign Exchange Data Provider, Best Low Latency Data/Technology Vendor, and Best Counterparty Data Provider.

Its board earlier approved a $0.02 per share annualized increase in the dividend to $1.32 per share. The company’s dividend yield is 3.50%. Its five-year average dividend yield is 3.60%.

Global management, insurance, and publishing can be your three-way route to returns. Due diligence on the above three companies can have you stockpiling cash in your trading account.

Fool contributor Michael Ugulini has no positions in any of the companies mentioned in this article.  

More on Investing

man makes the timeout gesture with his hands
Investing

TFSA Investors: The CRA Is Watching These Red Flags

Avoid CRA TFSA red flags by understanding the rules investors often overlook. Here are three stocks that can support safe,…

Read more »

woman looks ahead of her over water
Dividend Stocks

Want Growth and Dividends From the Same Portfolio? These 2 Canadian Stocks Deliver Both

Under-the-radar Canadian companies offer big yields, but they rely on very different cash-flow engines.

Read more »

semiconductor chip etching
Tech Stocks

A Leading Tech Stock to Buy in 2026

Shopify (TSX:SHOP) stock stands out as a tech titan that's shaping up to be a big bargain buy in tech.

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

2 Canadian Dividend Giants I’d Buy With Rates on Hold

These Canadian stocks have a consistent record of paying and growing dividends and are offering high yields of over 5%.

Read more »

man looks surprised at investment growth
Dividend Stocks

Use a TFSA to Earn $1,000 a Month With No Tax

Generate tax-free income by investing in these monthly dividend-paying TSX stocks in a Tax-Free Savings Account (TFSA).

Read more »

monthly calendar with clock
Dividend Stocks

Retirement Planning: How to Generate $2,000 in Monthly Income

Generate extra monthly income by adding shares of this TSX-traded income fund to your self-directed investment portfolio.

Read more »

doctor uses telehealth
Dividend Stocks

How to Turn Your TFSA Into a $300 Monthly Tax-Free Income Stream

Maximize your TFSA contributions to build up a reliable monthly income generating portfolio, with stocks like NWH.UN.

Read more »

Close-up of people hands taking slices of pepperoni pizza from wooden board.
Dividend Stocks

2 High-Yield Dividend Stocks You Can Buy and Hold for a Decade

Here are two reliable high-yield Canadian stocks to buy now that are made for long-term dividend investors.

Read more »