As most investors know, dividend-paying stocks outperform non-dividend-paying stocks over extended periods of time. This means that each and every long-term investor should own at least one dividend-paying stock, and depending on your age and investment goals, maybe even 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. Cenovus Energy Inc.: 4.65% yield
Cenovus Energy Inc. (TSX:CVE)(NYSE:CVE) is one of the largest integrated oil and gas companies in Canada. It pays a quarterly dividend of $0.2662 per share, or $1.0648 per share annually, giving its stock a 4.65% yield at current levels. The company has also increased its dividend three times in the last three years, and as long as commodity prices recover over the course of the year, I think it will announce another increase in fiscal 2015.
2. Laurentian Bank of Canada: 4.5% yield
Laurentian Bank of Canada (TSX:LB) is the ninth-largest bank in Canada in terms of total assets. It pays a quarterly dividend of $0.54 per share, or $2.16 per share annually, which gives its stock a 4.5% yield at today’s levels. The company has also increased its dividend 12 times since 2007, showing that it is strongly dedicated to maximizing the amount of capital it returns to shareholders, and I think this makes it one of the top dividend-growth plays in the financial sector today.
3. Parkland Fuel Corp.: 4.1% yield
Parkland Fuel Corp. (TSX:PKI) is one of the fastest growing independent marketers of fuel and petroleum products in North America. It pays a monthly dividend of $0.09 per share, or $1.08 per share annually, giving its stock a 4.1% yield at current levels. The company has also increased its dividend in each of the last three years, and its consistent free cash flow generation could allow for another increase in the near future.
Which of these top dividend stocks belong in your portfolio?
Cenovus Energy, Laurentian Bank, and Parkland Fuel represent three of the best dividend-paying investment opportunities in the market today. Foolish 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.