Three diverse sectors, and three opportunities for steady income — check out these companies, which operate in solid sectors that drive returns. All three are on the S&P/TSX 60 Best Dividend Yielding Stocks list.
Telus (TSX: T)(NYSE: TU) provides telecommunications solutions in Canada and is the nation’s second-largest telecommunications enterprise. For Q1 2014, Telus reported consolidated operating revenue growth of 5% from a year prior to $2.9 billion, and its EBITDA increased 4.2% to $1.08 billion.
Telus recently announced that through 2016 it will invest $2.6 billion in new infrastructure and facilities across Alberta. It will spend $1 billion across Alberta this year, the final year of a three-year plan launched in 2012. It will spend another $1.6 billion across 2015 and 2016 to build infrastructure, expand urban and rural internet connectivity and capacity, and bring wireless technology to more Albertan communities.
Its dividend yield is 3.7% with a five-year average dividend yield of 6.5%. Last month, the company’s quarterly dividend increased 11.8% to $0.38 per share. Its dividend rate is $1.52.
2. Teck Resources
A diversified resource company, Teck Resources (TSX: TCK.B)(NYSE: TCK) has major business units centered on copper, coal for steel, zinc, and energy. It’s facing challenges in its industries, which contributed to decreased Q1 profits and cash flow. Prices for the commodities were weak. This was especially true for coal versus Q1 2013. The company is focusing on lessening its capital spending and costs.
For Q1 2014 over Q1 2013, Teck’s coal production increased 8%, with copper up 2% and zinc in concentrate up 11%.
Nevertheless, Teck is consistent in providing returns to its shareholders. Its dividend yield is 3.8% with a five-year average dividend yield of 2.1%. In April, Teck announced it would pay an eligible dividend of $0.45 per share on its outstanding Class A common shares and Class B subordinate voting shares on July 2, 2014.
3. Toronto Dominion Bank
Toronto Dominion Bank (TSX: TD)(NYSE: TD) and its subsidiaries provide banking and financial services in North America and worldwide. For Q2 2014, its Canadian retail and U.S. retail divisions experienced growth.
Canadian retail banking produced net income of $1.3 billion. This represents an increase of 12% on an adjusted basis versus the same quarter in 2013. U.S. retail banking produced net income of US$495 million, an increase of 15% versus the second quarter in 2013. TD Bank has a North American retail banking focus. Its earnings mix for 2013 was 91% retail and 9% wholesale.
The bank’s dividend yield is 3.4% with a five-year average dividend yield of the same. Last month, it announced a dividend of $0.47 per fully paid common share in the capital stock for the quarter ending July 31, 2014. Its dividend rate is $1.88.
Dividend investing in quality companies is somewhat of a stress-free way to approach the stock market. These companies offer consistent returns for conservative investors desiring to build income portfolios.
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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 owns shares in Toronto Dominion Bank.