One of the most well-known facts about investing is that dividend-paying stocks far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three dividend-paying stocks trading under $15 with yields over 5% that you should consider buying today.
1. Killam Properties Inc.: 5.9% yield
Killam Properties Inc. (TSX:KMP) is one of Canada’s largest residential landlords. It pays a monthly dividend of $0.05 per share, or $0.60 per share annually, giving its stock a 5.9% yield at today’s levels. Investors should also note that the company increased its dividend by 3.5% in January 2014 as a result of its strong operational performance, and its double-digit increase in funds from operations in the first quarter of fiscal 2015 could allow for another increase in the very near future.
2. Enerplus Corp.: 5.7% yield
Enerplus Corp. (TSX: ERF)(NYSE: ERF) is one of the largest producers of crude oil and natural gas in North America. It pays a monthly dividend of $0.05 per share, or $0.60 per share annually, which gives its stock a 5.7% yield at current levels. It is also very important to note that the company reduced its dividend by 44.4% earlier this year, primarily due to lower commodity prices, but I think the new rate is sustainable for the long term.
3. Aimia Inc.: 5.6% yield
Aimia Inc. (TSX: AIM) is one of the largest providers of marketing and loyalty analytics services. It pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, giving its stock a 5.6% yield at today’s levels. The company has also increased its dividend for five consecutive years, and its consistent free cash flow generation could allow this streak to continue for another five years.
Does one of these stocks belong in your portfolio?
Killam Properties, Enerplus, and Aimia are three of the top dividend-paying stocks trading under $15 today. Foolish investors should strongly consider establishing positions in one or more of them.
