As many 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 a diversified portfolio full of them. With this in mind, let’s take a look at three stocks with yields of more than 4% to consider buying today.
1. Liquor Stores N.A. Ltd.: 7% yield
Liquor Stores N.A. Ltd. (TSX:LIQ) is one of the largest retailers of liquor in Canada. It pays a monthly dividend of $0.09 per share, or $1.08 per share annually, giving its stock a 7% yield at today’s levels. It is also worth noting that the company has maintained this monthly dividend payment since January of 2011, and I think it could continue doing so for the next several years.
2. Premium Brands Holdings Corp.: 4.55% yield
Premium Brands Holdings Corp. (TSX:PBH) is one of the largest owners and operators of specialty food manufacturing and differentiated food distribution businesses in North America. It pays a quarterly dividend of $0.345 per share, or $1.38 per share annually, which gives its stock a 4.55% yield at current levels. The company has also increased its dividend twice in the last three years, and its increased amount of free cash flow could allow for another increase in the very near future.
3. Bank of Montreal: 4.1% yield
Bank of Montreal (TSX:BMO)(NYSE:BMO) is the fourth-largest bank in Canada in terms of total assets. It pays a quarterly dividend of $0.80 per share, or $3.20 per share annually, giving its stock a 4.1% yield at today’s levels. The company has also increased its dividend five times since 2012, making it one of the top dividend-growth plays in the financial sector today.
Which of these dividend dynamos belong in your portfolio?
Liquor Stores N.A., Premium Brands Holdings, and Bank of Montreal represent three of the best dividend-paying investment opportunities in the market. Foolish investors should take a closer look and strongly consider initiating positions in at least one of them today.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
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.