Which of These Recently Announced Dividends Is Good for Your Portfolio?

Income investors should consider adding The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS), Royal Bank of Canada (TSX:RY)(NYSE:RY), Saputo Inc. (TSX:SAP), Manulife Financial Corp. (TSX:MFC)(NYSE:MFC), and Suncor Energy Inc. (TSX:SU)(NYSE:SU) to their portfolios.

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The Motley Fool

If you’re looking for steady and increased dividend payouts, look no further than these five Canadian companies that recently upped their dividends. Consider each for your diversified income portfolio.

1. Bank of Nova Scotia

Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) announced last week a quarterly common share dividend of $0.66 per share. This represents an increase of $0.02. The bank’s dividend yield is 3.70%, and its five-year average dividend yield is 3.80%. Its dividend rate is $2.64.

The Bank of Nova Scotia’s global banking and markets segment had record results in investment banking and good performance in equities and corporate banking in Canada, the U.S., and Europe in Q3 2014. The bank serves more than 21 million customers and had assets of $792 billion as of July 31, 2014.

2. Royal Bank of Canada

In August, Royal Bank of Canada (TSX: RY)(NYSE: RY), Canada’s largest bank, announced an increase in its quarterly common share dividend of $0.04 per share (6%) to $0.75 per share. RBC’s dividend yield is 3.70%, and its five-year average dividend yield is 3.80%. The bank’s dividend rate is $3.00.

For Q3 2014, RBC’s Capital Markets division — which has 70 offices in 15 countries — accounted for 27% of the bank’s earnings. This segment’s net income increased 66% in Q3 fueled by growth in trading activity, lending, as well as loan syndication.

3. Saputo

In early August, Saputo Inc. (TSX: SAP) increased its quarterly dividend from $0.23 per share to $0.26, representing a 13% increase. The company’s dividend yield is 1.60%, and its five-year average dividend yield is 1.70%. Saputo’s dividend rate is $1.04.

Saputo had increased revenues in its Canadian segment for its Q1 2014, ended June 30. Its acquisition of the fluid milk activities of Scotsburn Co-Operative Services Limited contributed to an increase in revenues. This past February, Saputo acquired Warrnambool Cheese & Butter Factory of Australia, which also drove Q3 revenues.

4. Manulife Financial

Last month, Manulife Financial Corp. (TSX: MFC)(NYSE: MFC) announced an increase of 19%, or $0.025 per share, to its quarterly common share dividend. Its quarterly dividend is now $0.155 per share. The company’s dividend yield is 2.81%, and its five-year average dividend yield is 3.60%. Manulife’s dividend rate is $0.62.

Manulife Financial — Canada’s largest insurer by market capitalization — is acquiring Edinburgh, Scotland-based Standard Life plc’s Canadian operations. Standard Life has 1.4 million clients in Canada and a significant presence in Quebec.

5. Suncor Energy

Suncor Energy Inc. (TSX: SU)(NYSE: SU) recently approved a dividend of $0.28 per common share. This represents a 22% increase over its Q1 2014 dividend. The company’s dividend yield is 2.54%, and its five-year average dividend yield is 1.60%. Its dividend rate is $1.12.

Suncor Energy’s core business is its oil sands operations, where it holds one of the largest positions. Overall, Suncor’s operations involve oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, as well as product marketing through its Petro-Canada brand. Petro-Canada has a network of more than 1,500 retail and wholesale outlets throughout Canada.

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 Royal Bank of Canada and The Bank of Nova Scotia.

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