5 Great Dividend Stocks for a Stable Portfolio

These five dividend-paying stocks offer stability in a volatile market.

| More on:
The Motley Fool

Do uncertain markets make you uncertain about equity investing? Consider these five dividend-paying stocks in critical sectors that offer portfolio stability and steady returns.

1. Agrium

Agrium (TSX: AGU)(NYSE: AGU) provides growers with top-quality crop input products and services. It supplies growers in North America, South America, and Australia. The company is the largest global agricultural retailer.

Agrium’s current dividend yield is 3.286%. Its five-year average dividend yield is 1%. Its annualized dividend rate is $3.00 and its five-year average dividend growth rate is 134.72%. Recently, Agrium announced a quarterly dividend of U.S.$0.75 per common share payable on July 17, 2014.

2. Enbridge

Enbridge (TSX: ENB)(NYSE: ENB) connects energy supply to premier refinery and consumer markets. The company transports, distributes, and generates energy, and operates the world’s longest and most complex crude oil pipeline system. Enbridge is the largest natural gas distributor in Canada.

Enbridge’s current dividend yield is 2.8%. Its five-year average dividend yield is 2.9%. Its annualized dividend rate is $1.40. In April, Enbridge’s board of directors declared a quarterly dividend of $0.35 per common share.

3. Sun Life Financial

Sun Life Financial (TSX: SLF)(NYSE: SLF) provides a varied range of insurance and wealth products and services to individuals and corporate clients. In 2013, it had $1.94 billion in operating income from continuing operations. This represents growth of 31% compared to 2012.

Sun Life Financial’s current dividend yield is 3.7%. Its five-year average dividend yield is 5% and its annualized dividend rate is $1.44. Sun Life’s board announced a quarterly dividend of $0.36 per common share in Q1 2014.

4. TransAlta

TransAlta (TSX: TA)(NYSE: TAC) is a power generator and wholesale marketer of electricity. In 2013, it exceeded its goal of serving more than 600 megawatts of customers in its commercial and industrial business.

TransAlta’s current dividend yield is 5.7% and its five-year average dividend yield is 6.9%. Its annualized dividend rate is $0.72. In April, the company’s board of directors declared a quarterly dividend of $0.18 per share on common shares payable on July 1, 2014.

5. TransCanada

TransCanada (TSX: TRP)(NYSE: TRP) constructs and operates energy infrastructure. The company operates one of the largest natural gas transmission networks in North America. For Q1 2014, TransCanada had comparable earnings of $422 million, or $0.60, per share versus $370 million, or $0.52 per share, for Q1 2013. This represents a 15% increase on a per share basis.

TransCanada’s current dividend yield is 3.8%. Its five-year average dividend yield is 3.9%. The company’s annualized dividend rate is $1.92. In May, TransCanada’s board declared a quarterly dividend of $0.48 per common share for the quarter ending June 30, 2014.

Hunker down with agricultural chemicals, oil and gas pipelines, insurance, and utilities. It’s a way to give your portfolio a measure of stability while achieving good ROI.

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.

More on Investing

Various Canadian dollars in gray pants pocket
Investing

Passive Income: How Much to Invest to Get $5,000 Each Year

Have you ever wondered how much to invest to generate a juicy passive-income stream? Here's a rundown of three superb…

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Monday, May 27

Rising commodity prices could lift the main TSX index today as the U.S. market remains shut for Memorial Day.

Read more »

calculate and analyze stock
Investing

Prediction: My 2 Top TSX Stocks to Beat the Market in 2024 and Beyond

Any investment is a prediction on the future of stock. Here are two stocks that should deliver predictably strong returns…

Read more »

Retirees sip their morning coffee outside.
Retirement

Here’s the Average RRSP Balance at Age 71 in Canada

If you hold stocks like Fortis Inc (TSX:FTS) in an RRSP, you pay no dividend and capital gain tax until…

Read more »

Dividend Stocks

2 REITs to Buy to Earn Like a Lazy Landlord

Becoming a landlord and managing the property yourself may give you the most direct exposure, but it also comes with…

Read more »

money cash dividends
Dividend Stocks

Beat the TSX Immediately With This Cash-Gushing Dividend Stock

This dividend stock has already beat the TSX today, even from 52-week lows. But it could only be the beginning.

Read more »

question marks written reminders tickets
Tech Stocks

Nvidia’s Historic Stock Split: Will Investors See Bigger Gains?

Nvidia's (NASDAQ:NVDA) record 10:1 stock split entices many investors in several important ways. But some myths aren't technically correct.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Retirement

Retirees: 2 TSX Dividend Stocks That Have Raised Payouts Annually for Decades

These stocks offer high yields and should continue to raise their payouts.

Read more »