One of the most well-known facts about investing is that dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term. It is for this reason that I think 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 all of this in mind, let’s take a look at three stocks with high and safe yields up to 5.6% that you could buy today.
1. Smart REIT
Smart REIT (TSX:SRU.UN), formerly known as Calloway REIT, is one of the largest owners and operators of shopping centres in Canada. It currently pays a monthly distribution of $0.1375 per share, or $1.65 per share annually, giving its stock a 5.6% yield at today’s levels.
Investors must also note that Smart REIT has raised its annual distribution for two consecutive years, and its 3.1% increase in October 2015 puts it on pace for 2016 to mark the third consecutive year with an increase.
2. Fortis Inc.
Fortis Inc. (TSX:FTS) is one of the largest electric and gas utilities companies in North America. It currently pays a quarterly dividend of $0.375 per share, or $1.50 per share annually, giving its stock a 4% yield at today’s levels.
It is also important to make three notes.
First, Fortis has raised its annual dividend payment for 43 consecutive years, which ties it with Canadian Utilities Limited for the longest active streak for a public corporation in Canada.
Second, its recent dividend increases, including its 10.3% increase in September 2015, puts in on pace for 2016 to mark the 44th consecutive year in which it has raised its annual dividend payment.
Third, the company has a dividend-growth target of approximately 6% annually through 2020, which would bring its streak of annual increases to 48, and I think there is a very good chance it will extend this target as 2020 nears.
3. High Liner Foods Inc.
High Liner Foods Inc. (TSX:HLF) is one of North America’s leading processors and distributors of value-added frozen seafood. It currently pays a quarterly dividend of $0.12 per share, or $0.48 per share annually, giving its stock a 3% yield at today’s levels.
Investors must also note that High Liner Foods has raised its annual dividend payment for eight consecutive years, and its 14.3% increase in May 2015 puts it on pace for 2016 to mark the ninth consecutive year with an increase.
Which of these dividend stocks should you buy?
Smart REIT, Fortis, and High Liner Foods are three of the top dividend-paying investment options in their respective industries. All Foolish investors should strongly consider making at least one of them a core holding today.