3 Stocks With Yields up to 5.4% to Buy Today

Looking for a dividend-paying stock? If so, take a look at Veresen Inc. (TSX:VSN), Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI), and Canadian Western Bank (TSX:CWB).

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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 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 up to 5.4% that you should consider buying today.

1. Veresen Inc.: 5.4% yield

Veresen Inc. (TSX:VSN) is one of the largest diversified energy infrastructure companies in North America. It pays a monthly dividend of $0.0833 per share, or $1 per share annually, giving its stock a 5.4% yield at today’s levels. Investors should also note that the company has maintained this monthly payment since February 2009, and its consistent free cash flow generation could allow it to continue to do so for the next several years.

2. Pattern Energy Group Inc.: 3.9% yield

Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) is a leading independent power company with operations in the United States, Canada, and Chile. It pays a quarterly dividend of $0.352 per share, or $1.408 per share annually, which gives its stock a 3.9% yield at current levels. The company has also increased its dividend five times in the last two years, and I think it could announce another increase in the second half of this year.

3. Canadian Western Bank: 3% yield

Canadian Western Bank (TSX:CWB) is one of the largest financial institutions in Canada. It pays a quarterly dividend of $0.21 per share, or $0.84 per share annually, giving its stock a 3% yield at today’s levels. Canadian Western Bank has the lowest yield of the three companies provided in this report, but it is very important to note it has increased its dividend nine times in the last five years, making it one of the top dividend-growth plays in the market today.

Which of these dividend stocks belong in your portfolio?

Veresen, Pattern Energy Group, and Canadian Western Bank are three of the top dividend stocks in the market today. All Foolish investors should take a closer look and strongly consider beginning to scale in to positions in at least one of them.

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.

More on Dividend Stocks

energy oil gas
Dividend Stocks

2 High-Yield Energy Stocks to Buy as Recession Approaches

Energy stocks such as TC Energy and Canadian Natural Resources allow investors to generate income even in recessionary times.

Read more »

green power renewable energy
Dividend Stocks

3 Top Dividend Stocks to Drive Your Passive Income

These three high-yielding, safe dividend stocks could boost your passive income.

Read more »

protect, safe, trust
Dividend Stocks

TFSA Wealth: How to Earn $363 in Monthly Passive Income for Life

Canadian investors can harness the power of the TFSA to generate steady tax-free passive income for decades.

Read more »

Canadian Dollars
Dividend Stocks

TFSA Millionaire: How to Turn $40,000 Into $1.2 Million for Retirement

Here's how TFSA investors are using the power of compounding to buy top Canadian dividend stocks to build retirement wealth.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Stocks Right Now

These three TSX stocks are my favourite performers. All have strong dividends, future growth, and historic performance behind them.

Read more »

Dividend Stocks

Passive Income Generator: 1 Dividend Stock Yielding 6.16%

A high-yield energy stock that pays monthly dividends is a reliable passive income generator for investors.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

3 Cheap Canadian Dividend Stocks to Buy Now for Passive Income

Investors seeking quality passive income can now buy top TSX dividend stocks at cheap prices.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy for Passive Income

While these high-quality dividend stocks are oversold, they are some of the best stocks to buy for passive-income seekers.

Read more »