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 investor should own at least one dividend-paying stock, and depending on your age, investment goals, and risk tolerance, maybe even a portfolio full of them. With this in mind, let’s take a look at three stocks with yields of up to 5.8% that you could buy today.
1. Baytex Energy Corp.: 5.8% yield
Baytex Energy Corp. (TSX:BTE)(NYSE:BTE) is one of the largest producers of crude oil and natural gas in North America. It pays a monthly dividend of $0.10 per share, or $1.20 per share annually, giving its stock a 5.8% yield at today’s levels. Investors should also note that the company decreased its dividend by 58.33% in December as a result of low commodity prices, but I think the current rate is sustainable until they recover.
2. Laurentian Bank of Canada: 4.5% yield
Laurentian Bank of Canada (TSX:LB) is one of the largest financial institutions in Canada. It pays a quarterly dividend of $0.54 per share, or $2.16 per share annually, which gives its stock a 4.5% yield at current levels. The company has also increased its dividend 12 times since 2007, showing that it is strongly dedicated to maximizing shareholder value and making it one of the top dividend-growth plays in the financial sector today.
3. Cineplex Inc.: 3.2% yield
Cineplex Inc. (TSX:CGX) is the largest owner and operator of movie theatres in Canada. It pays a monthly dividend of $0.13 per share, or $1.56 per share annually, giving its stock a 3.2% yield at today’s levels. Cineplex has the lowest dividend yield of the companies named in this article, but it is very important to note that it has increased its dividend for five consecutive years, and its consistent free cash flow generation could allow this streak to continue for another five years at least.
Which of these dividend stocks belong in your portfolio?
Baytex Energy, Laurentian Bank, and Cineplex represent three of the market’s top dividend-paying investment opportunities in the market today. Long-term investors should take a closer look and consider establishing 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.