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, investment goals, and risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at three stocks with dividend yields of more than 3% that you should consider buying today.
1. Aimia Inc.: 5.3% yield
Aimia Inc. (TSX:AIM) is one of the world’s largest providers of marketing and loyalty analytics services. It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, giving its stock a 5.3% yield at today’s levels. The company has also increased its dividend each of the last four years, and its consistent free cash flow generation could allow this streak to continue in 2015.
2. Great-West Lifeco Inc.: 3.6% yield
Great-West Lifeco Inc. (TSX:GWO) is one of the world’s leading providers of financial services, including life insurance, health insurance, and asset management. It pays a quarterly dividend of $0.326 per share, or $1.304 per share annually, which gives its stock a 3.6% yield at current levels. It is also worth noting that the company increased its dividend by 6% in February, and its financial stability could allow for another increase in 2016.
3. Enbridge Inc.: 3.1% yield
Enbridge Inc. (TSX:ENB)(NYSE:ENB) is one of the world’s leading transporters and distributors of crude oil and natural gas. It pays a quarterly dividend of $0.465 per share, or $1.86 per share annually, giving its stock a 3.1% yield at today’s levels. The company has also increased its dividend for 19 consecutive years, making it one of the top dividend-growth plays in the market today.
Which of these dividend stocks should you buy?
Aimia, Great-West Lifeco, and Enbridge represent three of the market’s top dividend-investment opportunities today. 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.