Add Yield to Your Portfolio With These 3 Stocks

Want more dividend income in 2016? If so, BCE Inc. (TSX:BCE)(NYSE:BCE), TMX Group Limited (TSX:X), and WSP Global Inc. (TSX:WSP) can make it happen.

| More on:
The Motley Fool

As history has shown, dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term. It is for this reason that all long-term investors should own at least one dividend-paying stock and, depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at three stocks from three different industries with yields up to 4.9% that you could buy right now.

1. BCE Inc.

BCE Inc. (TSX:BCE)(NYSE:BCE) is the largest communications company in Canada. It pays a quarterly dividend of $0.65 per share, or $2.60 per share annually, which gives its stock a 4.9% yield at today’s levels.

Investors must also make two very important notes. First, BCE has raised its annual dividend payment for seven consecutive years. Second, the company has a target dividend-payout range of 65-75% of free cash flow, so its strong growth, including 9% year-over-year growth to $2.08 billion in the first nine months of fiscal 2015, should allow this streak to continue in 2016.

2. TMX Group Limited

TMX Group Limited (TSX:X) operates cash and derivative markets for multiple asset classes, including equities, fixed income, and energy, and also provides clearing facilities, data products, and related services to financial institutions worldwide. It pays a quarterly dividend of $0.40 per share, or $1.60 per share annually, which gives its stock a 4.45% yield at today’s levels.

Investors should also note that TMX Group has maintained this quarterly rate since the fourth quarter of 2010, and its consistent cash flow from operating activities, including $201.7 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

3. WSP Global Inc.

WSP Global Inc. (TSX:WSP) is one of the world’s leading professional services firms, providing engineering and design services to numerous industries. It pays a quarterly dividend of $0.375 per share, or $1.50 per share annually, which gives its stock a 3.5% yield at today’s levels.

It is also important to note that WSP Global has maintained this annual rate since 2012, but I think its increased amount of funds from operations, including 103.1% year-over-year growth to $242.5 million in the first nine months of fiscal 2015, which was fueled by acquisitions, could allow for a significant increase in the very near future.

Could your portfolio use more dividend income in 2016?

BCE, TMX Group, and WSP Global can provide the dividend income that your portfolio needs in 2016. All Foolish investors should strongly consider making at least one of them a core holding 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

woman analyze data
Dividend Stocks

The Smartest Dividend Stocks to Buy With $1,000 Right Now

Do you have some cash to invest but want to earn a safe, low-risk dividend return? These dividend stocks are…

Read more »

An investor uses a tablet
Dividend Stocks

5 Canadian Dividend Stocks I Think Everyone Should Own

These Canadian stocks have a solid track record of dividend growth and offer compelling yields near their current market price.

Read more »

calculate and analyze stock
Dividend Stocks

This 4.4% Dividend Stock Pays Cash Every Single Month

This high-quality Canadian dividend stock offers an attractive yield and plenty of long-term growth potential.

Read more »

edit Safe pig, protect money
Dividend Stocks

3 TSX Dividend Aristocrats That Can Weather Any Economic Storm

Market volatility has investors wondering which stocks can withstand an economic storm. Here are three to consider today.

Read more »

people relax on mountain ledge
Dividend Stocks

Top Canadian Stocks to Buy for Passive Income 

Are you building a passive income portfolio that can beat inflation and provide higher purchasing power? You could consider buying…

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

1 Magnificent Canadian Dividend Stock Down 40 Percent to Buy and Hold Forever

This magnificent Canadian dividend stock trades at a huge discount, offers stellar growth, and pays one of the best yields…

Read more »

A plant grows from coins.
Dividend Stocks

Top Canadian Stocks to Buy for Dividend Growth

Dividend growth stocks can be a good option to build a passive income that beats inflation and improves buying power.

Read more »

Concept of multiple streams of income
Top TSX Stocks

The Best Stocks to Invest $1,000 in Right Now

Here are some of the best stocks that every investor should own today to generate massive income and strong growth…

Read more »