5 Top Dividend Stocks to Hold Through Market Cycles

Don’t worry about these stocks when the markets gyrate unpredictably.

| More on:
The Motley Fool

The more things change, the more things remain the same. Despite market volatility, these stocks should continue to provide you a good return on investment.

1. BCE

BCE (TSX: BCE)(NYSE: BCE) has a current dividend yield of 5.00% and its annual payout is $2.47. BCE is Canada’s largest communications company and its revenue comes from Bell Wireline (47%), Bell Wireless (28%), Bell Media (13%), and Bell Aliant (12%). BCE has a market capitalization of over $38 billion.

BCE owns approximately 44% of Bell Aliant’s shares. It plans to acquire the remaining shares it doesn’t hold in a deal worth approximately $4 billion. With this deal, BCE expects to enhance annual free cash flow by $200 million.

2. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) has a current dividend yield of 4.00% and its annual payout is $4.00. CIBC has a market capitalization of $40 billion.

Its business units are Retail and Business Banking, Wealth Management and Wholesale Banking. In Q2 2014, CIBC was the first bank in Canada to launch eDeposit™ for business banking customers. This allows business clients to rapidly scan, upload, and deposit a sizeable number of cheques in a single transaction using a secure desktop cheque scanner.

3. Canadian Oil Sands

Canadian Oil Sands (TSX: COS) has a current dividend yield of 5.90% and its annual payout is $1.40. The company has a 36.74% interest in the Syncrude project. Its Syncrude asset consists of large, bitumen-rich leases situated in the Athabasca oil sands deposit and a fully integrated upgrading facility. This facility produces 100% light, sweet crude oil.

For Q1 2014, Canadian Oil Sands’ cash flow from operations was $357 million versus cash flow from operations of $275 million Q1 2013. This represents a 30% increase.

4. PotashCorp

PotashCorp (TSX: POT)(NYSE: POT) has a current dividend yield of 3.80% and its annual payout is $1.40. The company produces and sells fertilizers and related industrial and feed products. PotashCorp has 20% of worldwide potash capacity at its Canadian operations. It also has ownership interests in four global potash-related businesses.

Potash Corp’s three business segments are potash, phosphate, and nitrogen. Its Q2 2014 cash from operating activities was $788 million, and $1.3 billion for the first six months of the year.

5. TransAlta

TransAlta (TSX: TA)(NYSE: TAC) has a current dividend yield of 5.70% and its annual payout is $0.72. The company is Canada’s largest publicly traded generator and marketer of electricity and renewable power. TransAlta has power plants in Canada, the U.S., and Australia.

In 2013, it surpassed its target of serving more than 600 megawatts of customers in its commercial and industrial business. In Q1 2014, TransAlta announced the formation of the Fortescue River Gas Pipeline Joint Venture. The joint venture’s first project will be to build, own, and operate a $178 million natural gas pipeline to TransAlta’s Solomon power station in Australia.

Don’t let market capriciousness worry you. Invest in top dividend-paying stocks in vital sectors that provide ROI through the good times and the bad.

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 position in any stocks mentioned. The Motley Fool owns shares of PotashCorp.

More on Investing

Senior housing

3 Lesser-Known Reasons to Invest in an RRSP

The RRSP has so many more benefits that investors might be unaware of, and can be used for your benefit…

Read more »


TFSA Blueprint: 4 Canadian Stocks to Secure Your Future

Successful TFSA investing requires four steps and four Canadian stocks to secure your future.

Read more »

gas station, car, and 24-hour store
Energy Stocks

Is it Too Late to Buy Suncor Stock?

Suncor Energy stock has rallied big in the last year, but expect it to move higher as efficiencies keep rolling…

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Monthly Money: How to Generate Consistent Tax-Free Passive Income

Adding these two attractive Canadian dividend stocks to your TFSA now could help you earn reliable monthly passive income for…

Read more »

analyze data
Dividend Stocks

3 Magnificent TSX Dividend Stocks to Buy and Hold Forever

Do you want to hold some quality dividend stocks for the decades ahead? Here are three stocks worth holding for…

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Tech Stocks

Up 51% This Year: This Canadian AI Stock is Still Down 65% From Its Highs – Time to Buy?

Copperleaf Technologies (TSX:CLPF) stock has shown positive momentum as the AI stock attempts a recovery. Can shares rise 180% to…

Read more »

Oil pipes in an oil field
Energy Stocks

TSX Energy Sector: Best Stocks to Buy in May 2024

Energy stocks like Suncor are generating massive amounts of cash flows and paying out significant dividends.

Read more »

Dividend Stocks

How Much Will Canadian Utilities Pay in Dividends This Year?

Investors can stabilize their long-term stock portfolio returns by accumulating quality utility stocks on meaningful dips.

Read more »