One of the keys to success in investing is owning dividend-paying stocks, because as history shows, they outperform their non-dividend-paying counterparts over the long term. With this in mind, let’s take a look at three top dividend stocks from three different sectors, so you can determine which would fit best in your portfolio.
1. IGM Financial Inc.
IGM Financial Inc. (TSX:IGM) is one of the largest personal financial services companies in Canada with over $130 billion in assets under management. It pays a quarterly dividend of $0.5625 per share, or $2.25 per share annually, giving its stock a 6.9% yield at today’s levels.
Investors must also note that IGM Financial has raised its annual dividend payment for two consecutive years. However, I think its decreased amount of cash flow from operating activities net of commissions paid, including a 20.9% year-over-year decline to $456.3 million in the first nine months of fiscal 2015, may cause it to simply maintain its current rate in 2016.
2. CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX:CRT.UN) is one of the largest owners of commercial real estate in Canada with over 275 properties that total more than 20 million square feet. It pays a monthly distribution of $0.05667 per share, or $0.68 per share annually, giving its stock a 5.2% yield at today’s levels.
Investors must also note that CT has raised its annual dividend payment for two consecutive years, and its 2.6% increase in November 2015, which took effect this month, puts it on pace for 2016 to mark the third consecutive year with an increase.
3. Pason Systems Inc.
Pason Systems Inc. (TSX:PSI) is one of the world’s leading providers of specialized data management systems for drilling rigs. It pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 4.1% yield at today’s levels.
Investors must also note that Pason Systems has raised its annual dividend payment for 12 consecutive years, and although it generates ample free cash flow to support another increase in 2016, it may simply maintain its current rate until oil and natural gas prices recover to ensure the strength of its balance sheet.
Which of these high yielders belongs in your portfolio?
IGM Financial, CT REIT, and Pason Systems are three of the most attractive dividend-paying investment options in their respective industries. Foolish investors should take a closer look and strongly consider beginning to scale in to long-term 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. Pason Systems is a recommendation of Stock Advisor Canada.