As an income investor, consider steady dividends from solid companies operating in diverse sectors with a record of consistent dividends and healthy dividend yields. Here are four worthy of further investigation.
1. Agrium
Agrium (TSX: AGU)(NYSE: AGU) has a current dividend yield of 3.27%. Its dividend rate is $3.00. The company’s five-year average dividend growth rate is 153.20%.
Agrium produces and distributes crop nutrients, crop protection products, seed and agronomic knowledge. In 2013, retail comprised the majority of its adjusted EBITDA at 43%. Nitrogen products was 34%, potash was 14%, other products (including Agrium Advanced Technologies and wholesale product purchased for resale) was 6%, and phosphate was 3%.
Last October, Agrium completed the acquisition of certain Canadian and Australian agri-products from Viterra. It purchased the majority of Viterra’s retail chains in Canada and Australia for approximately $300 million.
2. Fortis
Fortis (TSX: FTS) has a current dividend yield of 3.90%. Its dividend rate is $1.28. Fortis paid a dividend of $0.32 per common share in March. This is up from $0.31 cents in Q4 2013 (a 3.2% increase).
The expectation is that Fortis’s capital program will come in at $1.4 billion for this year. Over the five-year period from 2014 through 2018, its capital program is expected to be greater than $6.5 billion. Its consolidated capital expenditures were roughly $237 million for Q1 2014.
The company is constructing the $900 million, 335 megawatt Waneta Expansion hydroelectric generating facility in British Columbia. Fortis expects completion of this facility in spring 2015.
3. Husky Energy
An integrated energy company, Husky Energy (TSX: HSE) has a current dividend yield of 3.50%. The company’s five-year average dividend yield is 4.20%. Its dividend rate is $1.20.
Husky Energy operates upstream and downstream business divisions in Western and Atlantic Canada, the U.S., and the Asia Pacific Region. Its upstream division includes the exploration, development, and production of crude oil, bitumen, and natural gas.
Its downstream division comprises commodity marketing, pipeline transportation and storage, upgrading and refining crude oil, and power co-generation. It also includes marketing gasoline, diesel, jet fuel, asphalt, ethanol, and related products in Canada and the U.S. Husky’s net earnings increased by $127 million (24%) to $662 million in Q1 2014 versus $535 million in Q1 2013.
4. Royal Bank of Canada
Royal Bank (TSX: RY)(NYSE: RY) has a current dividend yield of 3.60% and a five-year average dividend yield of 3.80%. Its dividend rate is $2.84.
Worldwide, Royal Bank provides personal and commercial banking, insurance, wealth management and investor services, as well as capital markets products and services. The bank has over 16 million personal, business, public sector and institutional clients.
For Q2 2014, Royal achieved net income of $2.201 billion. This represents a 15% increase from $1.909 billion in Q2 2013. Its year-to-date net income (to April 30, 2014) was $4.29 billion. This represents an increase of 9% from $3.96 billion for year-to-date 2013.
Exposure across different sectors provides a hedge against major downturns in a particular sector. Position your holdings for stability through researching the above four companies as possible income stocks.
