Dividend-paying stocks should be core holdings in every investor’s portfolio, 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 different industries with yields up to 5.2% that you could buy today.
1. Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth-largest bank in Canada with approximately $463.3 billion in total assets. It pays a quarterly dividend of $1.15 per share, or $4.60 per share annually, which gives its stock a yield of about 5.2% at today’s levels.
It is also important for investors to make two notes.
First, CIBC has raised its annual dividend payment for five consecutive years, and its recent increases, including an increase in each of its last five quarters, puts it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, the company has a target dividend-payout range of 40-50% of its adjusted net earnings, so I think its consistent growth, including its 4.5% year-over-year increase to an adjusted $3.82 billion in fiscal 2015, will allow its streak of annual dividend increase to continue going forward.
2. WSP Global Inc.
WSP Global Inc. (TSX:WSP) is one of the world’s largest engineering consulting firms. It pays a quarterly dividend of $0.375 per share, or $1.50 per share annually, which gives its stock a yield of about 4% at today’s levels.
Investors must also note that WSP Global has maintained this annual rate since 2012. However, I think its increased amount of funds from operations as a result of its acquisitions, including an impressive 103.1% year-over-year increase to $242.5 million in the first nine months of fiscal 2015, could allow for a significant hike at some point in 2016.
3. Boralex Inc.
Boralex Inc. (TSX:BLX) is one of the largest producers of wind, hydroelectric, thermal, and solar power in Canada, the United States, and France. It pays a quarterly dividend of $0.13 per share, or $0.52 per share annually, which gives its stock a yield of about 3.4% at today’s levels.
It is also important to note that Boralex has maintained this annual rate since it began paying a dividend in 2014. However, I think its very strong growth in cash flows from operations, including an immense 130% year-over-year increase to $91.3 million in the first nine months of fiscal 2015, could allow for a significant increase in the very near future.
Which of these high yielders belongs in your portfolio?
Canadian Imperial Bank of Commerce, WSP Global, and Boralex are three of the top dividend-paying investment options in their respective industries. Foolish investors should take a closer look at each and consider beginning to scale in to long-term positions in at least one of them today.
