5 Great Dividend Stocks for a Stable Portfolio

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

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.

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

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