The Motley Fool

5 Diverse Stocks With Top Dividend Yields

Branch out and multiply returns with these top dividend-yielding stocks from diverse industries.

1. Telecommunication services

With a dividend rate of $2.47, BCE (TSX: BCE)(NYSE: BCE) has a current dividend yield of 4.9%, with a five-year average dividend yield of 4.9% as well.

BCE is focusing on building its internet service for its customers. Last week, it announced the launch of Home Hub. This is its new internet modem and Wi-Fi router designed exclusively for its Bell Fibe customers. The new Home Hub delivers Wi-Fi speeds up to three times faster than the majority of residential Wi-Fi routers.

2. Independent oil and gas

Crescent Point Energy (TSX: CPG)(NYSE: CPG) has a dividend rate of $2.76. Its dividend yield is 6.15% and its five-year average dividend yield is 6%.

In 2013, its commodity production mix was approximately 91% oil and natural gas liquids and 9% natural gas. In Canada, Crescent Point spent $563.5 million, or 33%, of its 2013 capital development program on its Viewfield Bakken light oil resource property in southeast Saskatchewan. Its development program in the Bakken play has led to the expansion of the Viewfield gas facility from 30 MMcf/d to 42 MMcf/d.

3. Agricultural chemicals

PotashCorp (TSX: POT)(NYSE: POT) has a dividend yield of 3.87%, a five-year average dividend yield of 1.4%, and a dividend rate of $1.40.

The company announced operating changes and workforce reductions in December 2013 in a tough potash environment. It has a multi-year potash capital expansion program that’s almost complete. Its Rocanville and Picadilly projects are the final elements of the program to be finished. For Q1 2014, its potash production was 2.4 million tonnes, greater than the 2.0 million tonnes produced in Q1 2013.

4. Banking

National Bank of Canada (TSX: NA) has a dividend rate of $1.92. Its dividend yield is 4.17%, with a five-year average dividend yield of 7.1%. In May, National Bank announced an increase of the dividend on its common shares from $0.46 to $0.48 per common share.

National Bank has a strong presence in Quebec, which is its source of sustained revenue growth. For the past three years, National Bank’s personal and commercial division has experienced compound annual growth in earnings of 6%. For Q2 2014, personal and commercial net income totaled $162 million, an increase of 6% from $153 million in Q2 2013.

5. Diversified utilities

TransAlta (TSX: TA)(NYSE: TAC) has a dividend yield of 5.6% with a dividend rate of $0.72. Its five-year average dividend yield is 6.7%.

In 2013, TransAlta exceeded its target of serving more than 600 megawatts of customers in its commercial and industrial divisions. In Q1 2014, TransAlta commenced construction with its joint venture partner of a $178 million natural gas pipeline to its Solomon power station in western Australia. TransAlta has a 43% interest in the joint venture. The power station has a capacity of 128 megawatts.

Look across the board for higher-yielding dividend stocks from an array of industries. Diversification with income can grow your portfolio for the long term.

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. The Motley Fool owns shares of PotashCorp.


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