Are you looking for high dividend yields from solid Canadian companies on the market? Consider these quality oil and gas and wireless communications stocks for your income portfolio.
1. Canadian Oil Sands Ltd.
Canadian Oil Sands Ltd. (TSX: COS)has an excellent current dividend yield of 6.43% and the company pays its dividends quarterly. At the end of July, Canadian Oil Sands declared a quarterly dividend of $0.35 per share. Its dividend rate is $1.40 and its 3-year average dividend growth rate is 23.40%. For the six months ended June 30, 2014, Canadian Oil Sands has paid dividends to shareholders amounting to $339 million ($0.70 per share). The company’s dividends are representative of its free cash flow (cash flow from operations less capital expenditures) over time.
Canadian Oil Sands indirectly owns a 36.74% working interest in the Syncrude Joint Venture. Syncrude engages in the mining and upgrading of bitumen from oil sands near Fort McMurray in northern Alberta. The Syncrude Project processes bitumen into synthetic crude oil. Regarding exercising proper capital expenditure discipline, Canadian Oil Sands invests in Syncrude to provide long-life, high-netback production. The Syncrude Project provides the company long-term pure oil exposure with no crude oil price hedging.
2. Enerplus Corp.
Enerplus Corp. (TSX: ERF)(NYSE: ERF)has a healthy current dividend yield of 5.00% and the company pays its dividends monthly. Recently, Enerplus announced that a cash dividend of C$0.09 per share will be payable on Sept. 19, 2014. Its dividend rate is $1.08. The company pays dividends from the cash flow generated from the sale of its oil and natural gas production.
Over the past three years, higher production volumes and oil weighting has helped propel funds flow growth for Enerplus. For Q2 2014, Enerplus attained record production of 104,000 BOE per day. This is the highest level in the company’s 28 year history. Its North Dakota production increased by 14% from Q1 2014. Its U.S. crude oil properties are in the Fort Berthold region of North Dakota and in the Elm Coulee field in Richland County, Montana. Enerplus holds an average 90% working interest in these properties. Enerplus’ main focus area is within the Deep Basin region of Alberta. There, it holds more than 160,000 net acres of high working interest lands.
3. Rogers Communications Inc.
Rogers Communications Inc. (TSX: RCI-B)(NYSE: RCI)has a current dividend yield of 4.10% and it also pays its dividends quarterly. In mid-August, the company announced a quarterly dividend totaling 45.75 cents per share. This dividend is the third quarterly dividend to reflect the increased $1.83 per share annualized dividend level. Rogers’ three-year average dividend growth rate is 9.30%.
Rogers Communications is Canada’s largest wireless carrier (9.4 million subscribers) and a foremost cable television provider. The company has leading wireless and broadband network platforms. Its Rogers Wireless segment has a 34% national market share. The company has 76% smartphone penetration and data is 51% of network revenues. Concerning the Rogers Cable segment, it has 4 million households distributed across approximately 30% of Canada.
Moreover, its Rogers Media segment reaches 95% of the Canadian population by way of television stations City and OMNI, radio and magazines, and digital. Rogers is enhancing its leading networks. In Q2, it announced $450 million of planned investments over the next three years. This is to further expand its wireless network in over 70 communities throughout British Columbia.
Consider consistent dividends with nice yields from these leading Canadian companies. These three stocks are a sound way to build a quality income portfolio.
Fool contributor Michael Ugulini has no position in any stocks mentioned.