I’m a conservative investor. I like regular dividends from leading blue-chip companies that provide everyday products and services. Here are five dividend stocks I own and why.
1. The Bank of Nova Scotia
I own The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) because it has a healthy 3.50% dividend yield and a dividend rate of $2.56. In addition, the bank serves more than 21 million customers.
The Bank of Nova Scotia reported net income in 2013 of approximately $6.7 billion, up over 2012 and 2011. Its Q2 2014 net income was $1.8 billion versus net income of $1.58 billion in Q2 2013. Year over year its net income increased by 14%.
2. Royal Bank of Canada
I own Royal Bank of Canada (TSX: RY)(NYSE: RY) because it also has a healthy dividend yield of 3.60%. Its dividend rate is $2.84. I like this stock because Royal is one of Canada’s largest banks. Based on market capitalization, it is also one of the largest banks in the world.
Furthermore, the bank is a strong income earner. For Q2 2014, its net income was $2.20 billion. This represents an increase of 15% from $1.91 billion in Q2 2013.
3. The Toronto-Dominion Bank
I own The Toronto-Dominion Bank (TSX: TD)(NYSE: TD) because it’s another stable Canadian bank with a nice dividend yield. Its yield is 3.40% and its five-year average dividend yield is the same. The bank’s dividend rate is $1.88. TD serves roughly 22 million customers.
TD Canada Trust, its personal and small business banking business, serves over 12 million customers in Canada. For Q2 2014, TD Bank’s net income was $1.99 billion versus $1.72 billion in Q2 2013.
4. General Electric
I own General Electric (NYSE: GE) for its 3.38% dividend yield. Its dividend rate is $0.88. This stock has had dividend growth for the last four years. In 2013, GE paid out $18.2 billion in dividends and stock buybacks.
Additionally, I own GE because of its diverse business operations. These include consumer lighting, consumer appliances, healthcare products, transportation, power & water, industrial solutions, lighting for business, capital for middle market businesses, aviation, and consumer electronics, among a host of other offerings.
5. McDonald’s
I own McDonald’s (NYSE: MCD) for its 3.40% dividend yield and its nice $3.24 dividend rate. This stock has 37 years of dividend growth (since 1977). Moreover, do you know many families with children that are going to stop eating hamburgers, fries, and drinking milkshakes? McDonald’s serves approximately 70 million customers worldwide each day. I’m not even going to discuss financials. Suffice it to say that when push comes to shove, companies like McDonald’s will still be around while other food trends fall by the wayside.
I tend to not listen to the chatter surrounding supposedly hot stocks that have no track record of performance. The five aforementioned stocks pay cash into my trading account regularly, just the way I like it. Consider these blue-chip stocks for your portfolio and grow your income.
