One of the most well-known facts about investing is that dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age and investment goals, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three of the top dividend-paying stocks that you should consider investing in today.
1. Teck Resources Ltd.: 5.2% yield
Teck Resources Ltd. (TSX:TCK.B)(NYSE:TCK) is the largest diversified resources company in Canada and the largest producer of steel-making coal in North America. The company pays a semi-annual dividend of $0.45 per share, or $0.90 per share annually, which gives its stock a 5.2% yield at current levels. The ongoing weakness in commodity prices has caused some investors to worry about the possibility of a dividend reduction, but it is important to note that the company still generates ample free cash flow each quarter, so I think it is safe for the time being.
2. BCE Inc.: 4.7% yield
BCE Inc. (TSX:BCE)(NYSE:BCE) is the largest communications company in Canada. The company pays a quarterly dividend of $0.65 per share, or $2.60 per share annually, which gives its stock a 4.7% yield at today’s levels. The company has also raised its dividend 11 times in the last six years, giving it one of the best reputations for maximizing shareholder value and making it one of the most popular stocks in the market today.
3. Agrium Inc.: 2.3% yield
Agrium Inc. (TSX:AGU)(NYSE:AGU) is one of the world’s largest producers and distributors of agricultural products and services in the world. The company pays a quarterly dividend $0.78 per share, or $3.12 per share annually, and this gives its stock a 2.3% yield at current levels. A 2.3% yield is not nearly as high as the other two companies’ yields provided in this article, but it is worth noting that the company has increased its dividend in each of the last three years, and its consistent free cash flow generation could enable another increase in the near future.
Which of these dividend stocks should you buy today?
Teck Resources, BCE, and Agrium represent three of the best long-term dividend-paying investment opportunities in the market. If you are looking to add yield to your portfolio, take a closer look and strongly consider buying one or more of these stocks today.
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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. Agrium is a recommendation of Stock Advisor Canada.