As most investors know, dividend-paying stocks far outperform non-dividend-paying stocks in the long term. This means that every long-term investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three stocks with dividend yields over 4.5% that you should consider buying today.
1. First National Financial Corp.: 6.6% yield
First National Financial Corp. (TSX:FN) is Canada’s largest non-bank lender, offering both commercial and residential mortgage solutions. It pays a monthly dividend of $0.125 per share, or $1.50 per share annually, giving its stock a 6.6% yield at current levels. The company has also increased its dividend for three consecutive years, and its consistent free cash flow generation could allow this streak to continue for the next several years.
2. Gibson Energy Inc.: 4.6% yield
Gibson Energy Inc. (TSX:GEI) is one of the largest independent midstream energy companies in Canada and one of the largest integrated service providers to the oil and gas industry in the United States. It pays a quarterly dividend of $0.32 per share, or $1.28 per share annually, which gives its stock a 4.6% yield at today’s levels. The company has also increased its dividend five times since 2012, and I think this makes it one of the top dividend-growth plays in the energy sector today.
3. Capital Power Corporation: 5.6% yield
Capital Power Corporation (TSX:CPX) is one of the largest power producers in Alberta, Canada. It pays a quarterly dividend of $0.34 per share, or $1.36 per share annually, giving its stock a 5.6% yield at current levels. It is also important to note that the company increased its dividend by 7.9% in July 2014 as a result of increased cash flow, and I think this could become an ongoing theme over the next several years.
Which of these top dividend stocks belong in your portfolio?
First National Financial, Gibson Energy, and Capital Power are three of the top dividend-paying stocks in the market today. All Foolish investors should take a closer look and strongly consider establishing long-term 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.