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 3.5% to consider buying today.
1. Russel Metals Inc.: 5.8% yield
Russel Metals Inc. (TSX:RUS) is one of the largest distributors of metals in North America. It pays a quarterly dividend of $0.38 per share, or $1.52 per share annually, giving its stock a 5.8% yield at current levels. The company has also increased its dividend four times in the last four years, showing that it is strongly dedicated to maximizing the amount of capital it returns to shareholders.
2. New Flyer Industries Inc.: 4.2% yield
New Flyer Industries Inc. (TSX:NFI) is one of the leading manufacturers of heavy-duty transit buses in North America. It pays a monthly dividend of $0.052 per share, or $0.62 per share annually, which gives its stock a 4.2% yield at today’s levels. It is also worth noting that the company increased its dividend by 6% on May 6 as a result of increased free cash flow, and I think this could become an ongoing theme over the next several years.
3. TransCanada Corporation: 3.9% yield
TransCanada Corporation (TSX:TRP)(NYSE:TRP) is one of the leading operators of natural gas pipelines and natural gas storage facilities in North America. It pays a quarterly dividend of $0.52 per share, or $2.08 per share annually, giving its stock a 3.9% yield at current levels. The company has also increased its dividend eight times since 2008, making it one of the top dividend-growth plays in the market today.
Which of these top dividend stocks belong in your portfolio?
Russel Metals, New Flyer Industries, and TransCanada represent three of the market’s top dividend investment opportunities today. 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.