The most stressful part about investing is not knowing what the market will do each day. It could rally, it could plummet, or it could do little to nothing. One way to reduce the stress is to fill your portfolio with dividend-paying stocks, because they outperform non-dividend-paying stocks over the long term, and because they are less volatile in times of uncertainty due to the dividend-providing protection to the downside. With all of this in mind, let’s take a look at three dividend-paying stocks with yields up to 5.7% that you could buy today.
1. AGF Management Limited: 5.7% yield
AGF Management Limited (TSX: AGF.B) is one of Canada’s largest investment management firms, serving both institutional and individual investors worldwide. It pays a quarterly dividend of $0.08 per share, or $0.32 per share annually, giving its stock a 5.4% yield at today’s levels. It is also worth noting that the company reduced its dividend by 70.4% earlier this year to free up money to invest in its growth and to repurchase its shares, but its yield is still more than double the industry average of 2.5%, so investors are not complaining.
2. Husky Energy Inc.: 5.1% yield
Husky Energy Inc. (TSX:HSE) is one of Canada’s largest integrated energy companies. It pays a quarterly dividend of $0.30 per share, or $1.20 per share annually, giving its stock a 5.1% yield at current levels. Investors should also note that the company has maintained this quarterly payment since the second quarter of fiscal 2009, and as long as commodity prices recover over the next few quarters, I think it could continue doing so for another six years.
3. Trimac Transportation Ltd.: 4.7% yield
Trimac Transportation Ltd. (TSX:TMA) provides truck transportation, logistics, and other related services throughout North America. It pays a quarterly dividend of $0.07 per share, or $0.28 per share annually, giving its stock a 4.7% yield at today’s levels. The company has maintained this annual rate since fiscal 2013, but its increased amount of free cash flow, including 157.5% year-over-year growth to $34.5 million in fiscal 2014 and 360% year-over-year growth to $4.6 million in the first quarter of fiscal 2015, could allow for a significant increase in the very near future.
Does your portfolio need one of these dividend payers?
AGF Management, Husky Energy, and Trimac Transportation are three of the most attractive dividend-paying stocks in the market today. All long-term investors should take a closer look and consider scaling in to positions in one or more of them.
