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 you should consider buying today.
1. Acadian Timber Corp.: 4.85% yield
Acadian Timber Corp. (TSX:ADN) is one of the largest suppliers of primary forest products in Eastern Canada and the Northeastern United States. It pays a quarterly dividend of $0.225 per share, or $0.90 per share annually, which gives its stock a 4.85% yield at today’s levels. Investors should also note that the company increased its annual dividend by 9% in February as a result of increased free cash flow, and I think this could be the starting point of several consecutive years of increases due to its growth potential.
2. Mullen Group Ltd.: 5.7% yield
Mullen Group Ltd. (TSX:MTL) is one of the largest providers of transportation and logistics services in Canada. It pays a monthly dividend of $0.10 per share, or $1.20 per share annually, giving its stock a 5.7% yield at current levels. The company has stated that it intends to maintain this annual dividend payment in 2015, so investors should not view this as a dividend-growth play for the time being.
3. Suncor Energy Inc.: 2.8% yield
Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the world’s largest integrated energy companies. It pays a quarterly dividend of $0.28 per share, or $1.12 per share annually, giving its stock a 2.8% yield at current levels. Suncor has the lowest yield of the three companies named in this article, but it is very important to note that the company has increased its annual dividend payment for five consecutive years, and as long as commodity prices recover over the course of the year, I think this streak could continue for the next several years.
Which of these top dividend stocks should you buy?
Acadian Timber, Mullen Group, and Suncor Energy represent three of the market’s top dividend investment opportunities today. All long-term investors should take a closer look and strongly consider initiating 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.