The Instant 3-Stock Dividend Portfolio for Beginner Investors

Looking to build a dividend-based portfolio? If so, consider buying Potash Corporation of Saskatchewan Inc. (TSX:POT)(NYSE:POT), National Bank of Canada (TSX:NA), and Rogers Communications Inc. (TSX: RCI.B)(NYSE:RCI).

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If you’re new to investing and are looking to build a dividend-based portfolio, then you’ve come to the right place. I’ve scoured the market and found three of the top dividend stocks that money can buy, so let’s take a closer look at each to determine if you should buy them today.

1. Potash Corporation of Saskatchewan Inc.: 7.1% yield

(All figures are in U.S. dollars) 

Potash Corporation of Saskatchewan Inc. (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, giving its stock a 7.1% yield at today’s levels.

It is also important to note that Potash has raised its dividend for five consecutive years, but its decreased amount of free cash flow, including a 27.3% year-over-year decline to $679 million in the first half of fiscal 2015, may cause it to simply maintain its current rate for the next year or two.

2. National Bank of Canada: 5.1% yield

National Bank of Canada (TSX:NA) is one of the largest banks in Canada, with approximately $215.6 billion in total assets. It pays a quarterly dividend of $0.52 per share, or $2.08 per share annually, which gives its stock a 5.1% yield at current levels.

Investors should also note that National Bank has raised its dividend for five consecutive years. Its strong financial performance, including a 6% year-over-year increase in earnings per share to $3.54 and a 7.4% year-over-year increase in revenue to $4.51 billion in the first nine months of fiscal 2015, could allow this streak to continue for the next several years.

3. Rogers Communications Inc.: 3.9% yield

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of the largest communications and media companies in Canada. It pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, giving its stock a 3.9% yield at today’s levels.

It is also important to note that Rogers has raised its dividend for 10 consecutive years, and its consistent free cash flow generation, including $1.44 billion in fiscal 2014 and $742 million in the first half of fiscal 2015, and its low payout ratio could allow this streak to continue in 2016.

Is now the time to build your dividend-based portfolio?

Potash Corporation of Saskatchewan, National Bank of Canada, and Rogers Communications are three of the top dividend stocks in the market. All Foolish investors looking to build a dividend-based portfolio should strongly consider initiating positions in these three stocks today.

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. The Motley Fool owns shares of ROGERS COMMUNICATIONS INC. CL B NV. Rogers Communications Inc. is a recommendation of Stock Advisor Canada.

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