Over the long term, dividend-paying stocks far outperform non-dividend-paying stocks when investors participate in a dividend reinvestment plan. It is for this reason that all long-term investors 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 up to 10.2% that you should consider buying today.
1. Crescent Point Energy Corp.: 10.2% yield
Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG) is one of the leading producers of crude oil and natural gas in North America. It pays a monthly dividend of $0.23 per share, or $2.76 per share annually, giving its stock a 10.2% yield at today’s levels. Investors should also note that the company has maintained this monthly payment since July of 2008, and as long as commodity prices continue to recover over the next few months, I think it could continue to do so for the next several years.
2. Dorel Industries Inc.: 3.6% yield
Dorel Industries Inc. (TSX:DII.B) is one of the largest manufacturers of consumer products in Canada. It pays a quarterly dividend of $0.30 per share, or $1.20 per share annually, which gives its stock a 3.6% yield at current levels. The company has only increased its dividend twice in the last six years, but its strong operational performance could allow for a significant increase in the very near future.
3. Canadian Western Bank: 3.2% yield
Canadian Western Bank (TSX:CWB) is one of the largest financial institutions in Canada, with approximately $21.5 billion in total assets. It pays a quarterly dividend of $0.22 per share, or $0.88 per share annually, giving its stock a 3.2% yield at today’s levels. It is also very important to note that the company has increased its dividend 19 times in the last 12 years, making it one of the top dividend-growth plays in the market today.
Which of these three stocks should you buy?
Crescent Point Energy, Dorel Industries, and Canadian Western Bank represent three of the best dividend-paying investment opportunities in the market. All long-term investors should take a closer look and strongly consider establishing positions in one or more of them today.
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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.