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 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 4% or more to buy today.
1. Bonavista Energy Corp.: 4.9% yield
Bonavista Energy Corp. (TSX:BNP) is one of the leading producers of oil and natural gas in Canada. It pays a monthly dividend of $0.035 per share, or $0.42 per share annually, giving its stock a 4.9% yield at today’s levels. Investors should also note that the company reduced its dividend by 50% in February as a result of the steep decline in commodity prices, but I think the current rate is sustainable until they recover.
2. Inter Pipeline Ltd.: 4.7% yield
Inter Pipeline Ltd. (TSX:IPL) is one of the leading providers of petroleum transportation and bulk liquid storage in western Canada and Europe. It pays a monthly dividend of $0.1225 per share, or $1.47 per share annually, giving its stock a 4.7% yield at current levels. The company has also increased its dividend seven times in the last six years, making it one of the top dividend-growth plays in the energy sector today.
3. National Bank of Canada: 4% yield
National Bank of Canada (TSX:NA) is the seventh-largest bank in Canada in terms of total assets. It pays a quarterly dividend of $0.50 per share, or $2.00 per share annually, giving its stock a 4% yield at today’s levels. The company has also increased its dividend nine times since 2010, and its consistent free cash flow generation could allow for another increase in the very near future.
Which of these dividend stocks should you buy today?
Bonavista Energy, Inter Pipeline, and National Bank represent three of the market’s top dividend-paying investment opportunities in the market today. All Foolish investors should take a closer look and consider establishing positions in 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.