As most investors know, dividend-paying stocks far outperform non-dividend-paying stocks 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. Crescent Point Energy Corp.: 8.8% yield
Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is one of the leading producers of crude oil and natural gas in North America. It currently pays a monthly dividend of $0.23 per share, or $2.76 per share annually, which gives its stock a very high yield of approximately 8.8% at current levels. There has been recent speculation that the continued weakness in commodity prices would force Crescent to reduce its dividend, but the company never flinched during the same situation in 2009, so I think it is safe for the time being.
2. Power Corporation of Canada: 3.45% yield
Power Corporation of Canada (TSX:POW) is one of the world’s largest diversified international management and holding companies. It currently pays a quarterly dividend of $0.29 per share, or $1.16 per share annually, and this gives its stock a yield of approximately 3.45% at today’s levels. The company has maintained this dividend payment since the second quarter of fiscal 2008, and it generates ample free cash flow each quarter and year, so I think it is safe to assume that it will maintain this payment going forward.
3. Thomson Reuters Corporation: 2.55% yield
Thomson Reuters Corporation (TSX:TRI)(NYSE:TRI) is the world’s leading source of intelligent information for businesses and professionals. It currently pays a quarterly dividend of $0.335 per share, or $1.34 per share annually, which gives its stock a yield of approximately 2.55% at current levels. Although Thomson Reuters has the lowest dividend yield of the three companies listed in this article, it is very important to note that the company has increased its annual dividend payment for 22 consecutive years, and I think this makes it one of the top dividend-growth plays in the market today.
Which of these top dividend stocks belong in your portfolio?
Crescent Point Energy, Power Corporation of Canada, and Thomson Reuters represent three of the market’s top dividend investment opportunities today. All long-term investors should take a closer look and strongly consider establishing positions in at least one of them.
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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.