As savvy investors know, dividend-paying stocks far outperform non-dividend-paying stocks over the long term, and the top returners are those that increase their annual dividend payments as often as possible. With this in mind, let’s take a look at three stocks that have increased their annual dividend payments for at least three consecutive years and have yields up to 4.6%.
1. North West Company Inc.: 4.6% yield
North West Company Inc. (TSX:NWC) is one of the leading retailers to underserved rural communities and urban neighborhood markets in North America. It pays a quarterly dividend of $0.29 per share, or $1.16 per share annually, giving its stock a 4.9% yield at current levels. The company has also increased its annual dividend payment for three consecutive years, and its consistent free cash flow generation could easily allow this streak to continue for another three years at least.
2. Canadian Energy Services & Tech Corp. 4.4% yield
Canadian Energy Services & Tech Corp. (TSX:CEU) is one of North America’s leading providers of consumable chemical solutions throughout the life cycle of an oilfield. It pays a monthly dividend of $0.0275 per share, or $0.33 per share annually, giving its stock a 4.4% 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 consistent funds from operations could allow this streak to continue in 2015.
3. Toronto-Dominion Bank: 3.8% yield
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada, with $1.03 trillion in total assets as of April 30, 2015. It pays a quarterly dividend of $0.51 per share, or $2.04 per share annually, giving its stock a 3.8% yield at current levels. The company has also increased its annual dividend payment for five consecutive years, and its financial stability could allow this streak to continue for decades.
Which of these dividend stocks should you buy?
North West Company, Canadian Energy Services & Technology, and Toronto-Dominion Bank represent three of the top dividend-paying investment options in the market today. Foolish investors should take a closer look and strongly consider establishing positions in at least one of them.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
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.