One of the keys to success in investing is owning dividend-paying stocks, because as history shows, they outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three stocks from three different industries with yields up to 4% that you could buy to form your instant three-stock dividend portfolio.
1. Rogers Communications Inc.
Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of the largest communications and media companies in Canada. It currently pays a dividend of $0.48 per share quarterly, or $1.92 per share annually, which gives its stock a 4% yield at today’s levels.
Investors must also make two very important notes.
First, Rogers has raised its annual dividend payment for 10 consecutive years.
Second, the company has consistently had a dividend payout ratio of about 50% of its net income, so its consistent growth, including 3.6% year-over-year growth to $1.08 billion in the first nine months of fiscal 2015, should allow its streak of annual increases to continue in 2016.
2. Manulife Financial Corp.
Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) is one of the world’s largest providers of financial products and services, including life, critical illness, disability, and long-term care insurance. It currently pays a dividend of $0.17 per share quarterly, or $0.68 per share annually, which gives its stock a 3.45% yield at today’s levels.
It is also very important for investors to note that Manulife has raised its annual dividend payment for two consecutive years, and its 9.7% increase in May 2015 puts it on pace for 2016 to mark the third consecutive year with an increase.
3. Sleep Country Canada Holdings Inc.
Sleep Country Canada Holdings Inc. (TSX:ZZZ) is the leading retailer of mattresses and sleep accessories in Canada, and it is the company behind the Sleep Country and Dormez-vous retail banners. It currently pays a dividend of $0.13 per share quarterly, or $0.52 per share annually, which gives its stock a 3.1% yield at today’s levels.
Investors must also make two important notes.
First, Sleep Country went public in July 2015, and it declared and paid its first dividend of $0.13 per share in November 2015.
Second, I think the company’s very strong financial performance, including its 61.6% year-over-year increase in adjusted net income to $25.5 million in the first nine months of fiscal 2015, could allow its dividend to quickly grow over the next few years.
Should you buy these dividend payers today?
Rogers Communications, Manulife Financial, and Sleep Country Canada could form your instant three-stock dividend portfolio. All Foolish investors should strongly consider initiating positions in one or more of them today.
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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 is a recommendation of Stock Advisor Canada.