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