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