Diversify Your Portfolio With These 5 Dividend Stocks

Want dividends? Want diversification? Consider these dividend-paying companies in each of five different industries.

1. Banking

Royal Bank of Canada (TSX: RY)(NYSE: RY) recently reported Q2 2014 net income of $2.2 billion. This represents an increase of 15% from $1.91 billion in Q2 2013. Its year-to-date 2014 net income is $4.3 billion, an increase of 9% from $3.96 billion for year-to-date 2013.

In Q1, Royal Bank announced an increase to its quarterly common share dividend of $0.04 per share, or 6%, to $0.71 per share. The bank has a dividend yield of 3.8%; its five-year average dividend yield is also 3.8%. Its dividend rate is $2.84.

2. Major integrated oil and gas

Suncor Energy (TSX: SU)(NYSE: SU) had record operating earnings of $1.79 billion and record cash flow from operations of $2.88 billion in Q1 2014. The company is focusing on managing cash operating costs in 2014. Moreover, it has targeted $175 million in research and development spending for this year.

Suncor’s dividend yield is 2% and its five-year average dividend yield is 1.5%. Its annualized rate is $0.92. In April, Suncor Energy’s board approved a quarterly dividend of $0.23 per share on its common shares.

3. Railroads

Canadian Pacific Railway (TSX: CP)(NYSE: CP) reported Q1 2014 net income of $254 million, or $1.44 per diluted share, in comparison to $217 million, or $1.24 per share, in Q1 2013 — a 16% improvement in EPS year over year. Canadian Pacific’s strategy is centered on a leaner fleet, infrastructure, and workforce to promote greater returns.

Canadian Pacific’s dividend yield is 0.71%. Its five-year average dividend yield is 1.4%. Its annualized dividend rate is $1.40. At the end of April, Canadian Pacific declared a quarterly dividend of $0.35 per share.

4. Life insurance

At year-end 2013, Great-West Lifeco (TSX: GWO) had $758 billion in assets under administration. Irish Life Group  of Dublin, Ireland, became a part of the company in 2013. This expands Great-West Lifeco’s presence in Europe. For Q1 2014, total company sales increased 43% versus Q1 2013. Its sales increased in Canada by 6% to $3.2 billion in Q1.

The company has a healthy 4.13% dividend yield. Its five-year average dividend yield is 4.8%. Its annualized dividend rate is $1.23. The company recently declared a quarterly common dividend of $0.3075 per common share.

5. Auto Parts Wholesale

Magna International (TSX: MG)(NYSE: MGA) has 315 manufacturing operations and 82 product development, engineering, and sales centres in 29 countries. For Q1 2014, Magna’s sales grew 7% over Q1 2013, to $8.96 billion. Furthermore, its North American light vehicle production increased 4% in Q1 2014 versus Q1 2013. In 2013, its sales, net income, EPS, and cash flow from operations were all greater than 2012’s record levels.

Magna’s dividend yield is 1.4% and its five-year average dividend yield is 1.5%. The company’s annualized dividend rate is $1.52. In May, Magna’s board declared a quarterly dividend of $0.38 on its outstanding common shares for Q1 2014.

There’s a broad array of dividends to be had across multiple sectors. Check out the above companies, and others of their kind, to grow the value of your portfolio.

5 more stocks to consider

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Fool contributor Michael Ugulini owns shares in Royal Bank of Canada. Magna International is a recommendation of Stock Advisor Canada.

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