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 this stress is to fill your portfolio with dividend-paying stocks, because they outperform non-dividend-paying stocks over the long term. They are also 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 from the financial sector that you could add to your portfolio today.
1. GMP Capital Inc.: 4% yield
GMP Capital Inc. (TSX:GMP) is a leading independent diversified financial services firm, providing a wide range of financial products and services to a global client base. It pays a quarterly dividend of $0.05 per share, or $0.20 per share annually, giving its stock a 4% yield at today’s levels. It is also worth noting that the company has maintained this quarterly payment since the third quarter of fiscal 2012, and its financial stability could allow it to consider doing so for the next several years.
2. Toronto-Dominion Bank: 3.9% yield
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is the second-largest bank in Canada, with approximately $1.03 trillion in total assets. It pays a quarterly dividend of $0.51 per share, or $2.04 per share annually, which gives its stock a 3.9% yield at current levels. Investors should also note that the company has increased its annual dividend payment for five consecutive years, and its consistent free cash flow generation could allow this streak to continue for the foreseeable future.
3. Gluskin Sheff + Associates Inc.: 3.5% yield
Gluskin Sheff + Associates Inc. (TSX:GS) is one of Canada’s largest wealth management firms, serving high net worth individuals and select institutional investors. It pays a quarterly dividend of $0.225 per share, or $0.90 per share annually, giving its stock a 3.5% yield at today’s levels. The company has also increased its annual dividend payment each year since 2007, and it has paid out 11 special dividends in that same span, making it one of the top income-generating investment opportunities in the industry.
Could your portfolio use a high-yielding financial stock?
GMP Capital, Toronto-Dominion Bank, and Gluskin Sheff + Associates represent three of the top dividend-paying investment opportunities in the financial sector. All long-term investors should take a closer look and strongly consider buying one of these stocks today.
