5 Stocks That Will Reap Dividends Throughout the Summer

Budget for next summer’s vacation by reaping a plethora of dividends this summer.

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The Motley Fool

If you’re wary of new wave companies without a rich history of performance and distributions, consider these five dividend-paying stocks that will have you counting cash for the rest of the year.

1. Bank of Nova Scotia

Bank of Nova Scotia’s (TSX: BNS)(NYSE: BNS) dividend yield is 3.50% and its five-year average dividend yield is 3.80%. Its dividend rate is $2.56. Its operations include Canadian Banking, International Banking, Global Wealth & Insurance, and Global Banking & Markets.

In May, Bank of Nova Scotia reported Q2 2014 net income of $1.8 billion, versus net income of $1.58 billion in Q2 2013. Net income increased year-over-year by 14%. Its 2013 net income was approximately $6.7 billion, in comparison with approximately $6.5 billion in 2012, and approximately 5.3 billion in 2011.

2. Peyto Exploration & Development

Peyto Exploration & Development’s (TSX: PEY) dividend yield is 3.20% and its dividend rate is $1.20. The company pays dividends monthly. Its three-year average dividend growth rate is 45.71%. In Q1 2014, Peyto declared a monthly dividend increase of $0.02/share, beginning in May 2014.

Peyto explores for and produces unconventional natural gas in the Deep Basin of Alberta. In 2013, Peyto invested $578 million into its operations, a record for the company. This investment included drilling and completing 99 new gas wells and the building of two new gas plants.

3. TD Bank

In May, TD Bank (TSX: TD)(NYSE: TD) announced a dividend of $0.47 per common share. Its dividend yield is 3.40% and its five-year average dividend yield is the same. The bank’s dividend rate is $1.88. In 2013, TD increased its annual dividends paid 12% from the year prior. This included two additional dividend increases paid in fiscal 2013.

TD is the sixth largest bank in North America by branches. Retail banking accounts for 91% of the bank’s operations, with wholesale banking rounding out the remainder.

Two from south of the border

4. McDonald’s

McDonald’s (NYSE: MCD) dividend yield is 3.28% and its dividend rate is $3.24. McDonald’s has had dividend growth for 37 years, since 1977. In 2013, McDonald’s had EPS growth of 4%. The company has more than 35,000 locations and it serves approximately 70 million customers daily.

For 2013, McDonald’s achieved cash flow from operations of $7.1 billion. Moreover, in 2013, the company returned $4.9 billion to its shareholders via dividends and share repurchases. For April 2014, McDonald’s experienced international growth. Its Asia/Pacific, Middle East and Africa comparable sales increased 2.90%.

5. McCormick & Company

McCormick & Company’s (NYSE: MKC) dividend yield is 2.13%. The company has had dividend growth for 27 years since 1987. Its dividend rate is $1.48. 2014 marks the 90th year of consecutive dividend payments by McCormick’s.

The company manufactures, markets, and distributes spices, seasoning mixes, condiments, and other products. Its brands include McCormick, Lawry’s, Old Bay, Billy Bee, and Club House, among others.

For Q2 2014, McCormick’s sales increased 3%. For fiscal year 2014, it reaffirmed its plans to increase sales 3% to 5%.

Next summer’s vacation budget will receive a boost if you invest wisely in premier blue-chip companies with a strong track record of dividends. Consider the above five for your portfolio and enjoy the rest of the summer!

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 of McCormick, McDonald's, PEYTO EXPLORATION AND DVLPMNT CORP., The Bank of Nova Scotia, and The Toronto-Dominion Bank.

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