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 dividend-paying stocks with yields of more than 2% and extensive track records of increasing their payouts that you should consider buying today.
1. Royal Bank of Canada: 3.9% yield
Royal Bank of Canada (TSX:RY)(NYSE:RY) is the largest bank in Canada in terms of total assets. It pays a quarterly dividend of $0.77 per share, or $3.08 per share annually, giving its stock a 3.9% yield at today’s levels. The company has also increased its dividend eight times since 2011, making it one of the top dividend-growth plays in the financial sector today.
2. Thomson Reuters Corporation: 2.7% yield
Thomson Reuters Corporation (TSX:TRI)(NYSE:TRI) is the world’s leading source of intelligent information for businesses and professionals. It pays a quarterly dividend of $0.335 per share, or $1.34 per share annually, which gives its stock a 2.7% yield at current levels. Thomson Reuters has also increased its dividend for 22 consecutive years, which makes it one of the top dividend-growth plays in the market today.
3. SNC-Lavalin Group Inc.: 2.3% yield
SNC-Lavalin Group Inc. (TSX:SNC) is one of the largest engineering and construction companies in the world. It pays a quarterly dividend of $0.25 per share, or $1 per share annually, giving its stock a 2.3% yield at today’s levels. The company has also increased its dividend for 15 consecutive years, making it one of the top dividend-growth plays in the engineering and construction industries today.
Which of these top stocks should you buy?
Royal Bank of Canada, Thomson Reuters, and SNC-Lavalin Group represent three of the top dividend-growth plays in the market today. Foolish 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.