One of the most well-known facts about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over an extended period of time. With this fact in mind, let’s take a look at three stocks with dividend yields over 4% that you should consider buying today.
1. Rogers Communications Inc.: 4.4% yield
Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of the largest communications and media companies in Canada. It currently pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, giving its stock a 4.4% yield at today’s levels. The company has also increased its dividend 11 times since 2005 and its consistent free cash flow generation could allow for another increase in fiscal 2015.
2. National Bank of Canada: 4.2% yield
National Bank of Canada (TSX:NA) is the seventh-largest bank in Canada in terms of total assets. It currently pays a quarterly dividend of $0.50 per share, or $2.00 per share annually, giving its stock a 4.2% yield at current levels. The company has also increased its dividend nine times since 2010, making it one of the best dividend growth plays in the banking industry today.
3. AltaGas Ltd.: 4.2% yield
AltaGas Ltd. (TSX:ALA) is one of North America’s leading energy infrastructure companies. It pays a monthly dividend of $0.1475 per share, or $1.77 per share annually, giving its stock a 4.2% yield at today’s levels. The company has also increased its dividend five times since 2011 and its increased free cash flow could allow for another increase in the very near future.
Which of these top dividend stocks belong in your portfolio?
Rogers Communications, National Bank of Canada, and AltaGas represent three of the market’s top dividend investment opportunities today. All long-term investors should take a closer look and consider buying one of these stocks to add yield and further diversity your portfolios.
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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 Joseph Solitro has no position in any stocks mentioned. Rogers Communications Inc. is a recommendation of Stock Advisor Canada.