One of the most important facts to know about investing is that dividend-paying stocks far outperform non-dividend-paying stock over the long term when participating in a dividend reinvestment plan (DRIP). This means that every long-term investor should own at least one dividend-paying stock, and depending on your age and investment goals, maybe a diversified portfolio full of them. With this in mind, let’s take a look at three stocks with yields of up to 6.1% that you should consider buying today.
1. Capital Power Corporation: 6.1% yield
Capital Power Corporation (TSX:CPX) is one of the largest power producers in Alberta, Canada. It pays a quarterly dividend of $0.34 per share, or $1.36 per share annually, giving its stock a 6.1% yield at today’s levels. Investors should also note that the company increased its dividend by 7.9% in July 2014 as a result of its strong operational performance, and I think it could announce another increase in the second half of this year for the same reason.
2. Rogers Communications Inc.: 4.6% yield
Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of the largest communications and media companies in Canada. It pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, giving its stock a 4.6% yield at current levels. The company has also increased its dividend 11 times in the last 11 years, making it one of the top dividend growth plays in the market today, and its consistent free cash flow generation could allow for another increase in the very near future.
3. Suncor Energy Inc.: 3.2% yield
Suncor Energy Inc. (TSX:SU)(NYSE:SU) is one of the world’s largest integrated energy companies. It pays a quarterly dividend of $0.28 per share, or $1.12 per share annually, giving its stock a 3.2% yield at today’s levels. The company has also increased its annual dividend payment for five consecutive years, and as long as commodity prices continue to recover over the next few months, I think this streak could continue for another five years at least.
Which of these dividend stocks belong in your portfolio?
Capital Power, Rogers Communications, and Suncor Energy represent three of the top dividend-paying investment opportunities in the market today. All Foolish investors should take a closer look and strongly consider beginning to scale in to long-term 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. Rogers Communications is a recommendation of Stock Advisor Canada. Motley Fool Pro Canada owns shares in Rogers.