3 High Dividend Stocks You Can Trust

Need yield? If so, Altagas Ltd. (TSX:ALA), Royal Bank of Canada (TSX:RY)(NYSE:RY), and Altus Group Ltd. (TSX:AIF) deserve your attention.

| More on:

If you are a long-term investor, you must own at least one dividend-paying stock, because they far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three with yields up to 6.4% that you could buy today.

1. Altagas Ltd.

Altagas Ltd. (TSX:ALA) is one of North America’s leading energy infrastructure companies. It pays a monthly dividend of $0.165 per share, or $1.98 per share annually, giving its stock a 6.4% yield at today’s levels.

It is also important for investors to make two notes. First, AltaGas has raised its annual dividend payment for five consecutive years, and it is currently on pace for 2016 to mark the sixth consecutive year with an increase. Second, the company has stated that it expects to maintain its target payout ratio of 40-50% of funds from operations, so its consistent growth should allow this streak to continue in 2017.

2. Royal Bank of Canada

Royal Bank of Canada (TSX:RY)(NYSE:RY) is the second-largest bank in Canada with approximately $1.07 trillion in total assets. It pays a quarterly dividend of $0.79 per share, or $3.16 per share annually, giving its stock a 4.3% yield at today’s levels.

Investors must also make two important notes. First, Royal Bank of Canada has raised its annual dividend payment for five consecutive years, and it is currently on pace for 2016 to mark the sixth consecutive year with an increase. Second, the company has a target dividend-payout ratio of 40-50% of net earnings, so its consistent growth should allow this streak to continue for the next several years.

3. Altus Group Ltd.

Altus Group Ltd. (TSX:AIF) is one of the leading providers of independent advisory services, software, and data solutions to the world’s commercial real estate industry. It pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, giving its stock a 3.2% yield at today’s levels.

Investors should also note that Altus has maintained this rate since 2011, and its ample cash generated from operating activities, including $29.59 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

Which of these dividend stocks should you buy?

AltaGas, Royal Bank of Canada, and Altus Group are three of the top dividend plays in their respective industries. All Foolish investors should take a closer look and strongly consider initiating positions in one of them 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.

More on Dividend Stocks

Man data analyze
Dividend Stocks

This 5.3% Dividend Stock Is a No-Brainer as Trump’s Tariffs Hit

This dividend stock offers investors strong income should Canada be hit by Trump's tariffs.

Read more »

Map of Canada showing connectivity
Dividend Stocks

Trump’s Tariffs: 1 Canadian Stock to Dump and 1 to Buy Immediately

As Trump threatens tariffs on Canada, these are two top stocks to watch.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

TFSA: 4 Canadian Stocks to Buy Now and Hold Forever

These top Canadian stocks could give a big boost to your hard-earned TFSA savings in the long run.

Read more »

stock research, analyze data
Dividend Stocks

Prediction: These Could Be the Best-Performing Value Stocks Through 2030

Despite short-term challenges, these top Canadian value stocks could outperform the broader market by a wide margin in the coming…

Read more »

An investor uses a tablet
Dividend Stocks

Where Will BCE Stock Be in 5 Years?

Despite facing big short-term challenges, BCE stock’s strong market position, steady dividend, and long-term vision make it worth watching.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Want Safe Dividend Income in 2025? Invest in the Following 3 Ultra-High-Yield Stocks!

The market is full of great income stocks, but this trio can provide growth potential and safe dividend income for…

Read more »

A meter measures energy use.
Dividend Stocks

Power Up Your Defences: Canadian Utility ETFs for Steady Income

It is time to power up your defence strategy to withstand market uncertainty around a looming trade war with Canadian…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

What to Know About Canadian Railway Stocks for 2025

The Canadian National Railway (TSX:CNR) isn't the only railroad stock in town.

Read more »