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.
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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.