As most investors know, dividend-paying stocks far outperform non-dividend-paying stocks 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 yields of more than 3% that you should consider buying today.
1. Vermillion Energy Inc.: 4.65% yield
Vermillion Energy Inc. (TSX:VET)(NYSE:VET) is one of the largest producers of crude oil and natural gas in North America, Europe, and Australia. It pays a monthly dividend of $0.215 per share, or $2.58 per share annually, giving its stock a 4.65% yield at today’s levels. The company has also increased its dividend twice in the last two years, which shows that it is dedicated to maximizing shareholder value.
2. Sun Life Financial Inc.: 3.8% yield
Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) is one of the world’s largest financial services organizations and the 13th largest life insurer by market capitalization. It pays a quarterly dividend of $0.38 per share, or $1.52 per share annually, which gives its stock a 3.8% yield at current levels. It is also worth noting that the company increased its dividend by 5.6% in May as a result of increased free cash flow, and I think this could become on ongoing theme in the next several years.
3. DH Corp.: 3.15% yield
DH Corp. (TSX:DH) is one of the leading providers of financial technology to the world’s financial institutions. It pays a quarterly dividend of $0.32 per share, or $1.28 per share annually, giving its stock a 3.15% yield at today’s levels. The company has also increased its dividend twice in the last four years, and its increased free cash flow could allow for another increase in the near future.
Which of these top dividend stocks belong in your portfolio?
Vermillion Energy, Sun Life Financial, and DH Corp. represent three of the market’s top dividend-paying investment opportunities today. Foolish investors should take a closer look and strongly consider buying 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.