3 Great Dividend Stocks for Buy-and-Hold Investors

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 great ones that you could buy today.

1. Exchange Income Corporation

Exchange Income Corporation (TSX:EIF) is focused on investing in profitable, well-established companies with strong cash flows that operate in niche markets, so it can distribute stable monthly cash dividends to its shareholders. It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, which gives its stock a yield of about 8% at today’s levels.

It is also very important for investors to make two notes.

First, Exchange Income Corporation has raised its annual dividend payment for five consecutive years, and its 10.3% increase in August 2015 puts it on pace for 2016 to mark the sixth consecutive year with an increase.

Second, I think its very strong growth in free cash flow less maintenance capital expenditures, including 130.5% year-over-year growth to $54 million in the first nine months of fiscal 2015, and its low payout ratio, including 58.6% in the first nine months of fiscal 2015 compared with 118.9% in the same period in fiscal 2014, could allow it to announce another double-digit percentage dividend hike within the next few months.

2. DH Corp.

DH Corp. (TSX:DH) is one of the world’s leading providers of financial technology and related solutions to financial institutions. It pays a quarterly dividend of $0.32 per share, or $1.28 per share annually, which gives its stock a yield of about 4.1% at today’s levels.

Investors should also note that DH Corp. has maintained its current annual dividend rate since 2013, and I think its ample cash flow from operating activities, including $128.4 million in the first nine months of fiscal 2015, could allow it to continue to do so going forward.

3. Brookfield Property Partners LP

Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) is one of the world’s largest commercial real estate companies with a diversified portfolio of over 130 office properties and over 150 retail malls around the world. It pays a quarterly dividend of US$0.265 per share, or US$1.06 per share annually, which gives its stock a yield of about 5.1% at today’s levels.

Investors must also note that Brookfield Property Partners raised its distribution by 6% in February 2015, its first increase since it was spun off from Brookfield Asset Management Inc. in April 2013, and I think its very strong operational performance could allow this to be the start of many consecutive years of increases.

Which of these dividend payers would fit best in your portfolio?

Exchange Income Corporation, DH Corp., and Brookfield Property Partners can provide the dividend income that your portfolio needs. Foolish investors should take a closer look and 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 BROOKFIELD ASSET MANAGEMENT INC. CL.A LV.

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