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.
