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 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 high dividend yields that you should consider buying today.
1. Enercare Inc.: 6.05% yield
Enercare Inc. (TSX:ECI) is one of Canada’s largest home and commercial services companies, providing water heaters, furnaces, air conditioners, and other HVAC rental products, protection plans, and related services. It pays a monthly dividend of $0.07 per share, or $0.84 per share annually, giving its stock a 6.05% yield at today’s levels. It is also worth noting that the company has increased its annual dividend payment for four consecutive years, and its very strong operational performance could allow this streak to continue for the next several years.
2. Potash Corp./Saskatchewan: 4% yield
Potash Corp./Saskatchewan (TSX:POT)(NYSE:POT) is the world’s largest manufacturer of fertilizer. It pays a quarterly dividend of $0.38 per share, or $1.52 per share annually, which gives its stock a 4% yield at current levels. The company has also increased its annual dividend payment for five consecutive years, and its consistent free cash flow generation could allow this streak to continue for another five years at least.
3. Finning International Inc.: 3.1% yield
Finning International Inc. (TSX:FTT) is the world’s largest dealer of Caterpillar equipment, parts, and related services. It pays a quarterly dividend of $0.1825 per share, or $0.73 per share annually, giving its stock a 3.1% yield at today’s levels. Investors should also note that the company has increased its annual dividend payment for 13 consecutive years, making it one of the top dividend-growth plays in the market today.
Which of these top dividend stocks belong in your portfolio?
Enercare, Potash Corp./Saskatchewan, and Finning International are three of the most attractive dividend-paying stocks 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.
