3 Diversified Dividend Picks for Long-Term Investors

Need a dividend stock? If so, BCE Inc. (TSX:BCE)(NYSE:BCE), Valener Inc. (TSX:VNR), and Power Financial Corp. (TSX:PWF) are attractive options.

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Dividend stocks should be core holdings in every investor’s portfolio, 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 stocks from different industries with yields of 4-6% that you could add to your portfolio today.

1. BCE Inc.

BCE Inc. (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company. It pays a quarterly dividend of $0.6825 per share, or $2.73 per share annually, which gives its stock a yield of about 4.7% at today’s levels.

Investors must also make two notes.

First, BCE has raised its annual dividend payment for seven consecutive years, and its 4% increase on February 4 puts it on pace for 2016 to mark the eighth consecutive year with an increase.

Second, the company has a target dividend-payout range of 65-75% of its free cash flow, so I think its consistent growth, including 2.3% year-over-year growth to $3.54 per share in fiscal 2015, will allow its streak of annual increases to continue going forward.

2. Valener Inc.

Valener Inc. (TSX:VNR) is a public company that serves as an investment vehicle in Gaz Metro, which owns a diversified and largely regulated energy portfolio in Quebec and Vermont. It pays a quarterly dividend of $0.27 per share, or $1.08 per share annually, which gives its stock a yield of about 5.7% at today’s levels.

Investors must also make two notes.

First, Valener raised its annual dividend payment by 3% in 2015 to $1.03 per share, and it is currently on pace for 2016 to mark the second consecutive year with an increase.

Second, the company has an annual dividend-growth target of about 4% through 2018.

3. Power Financial Corp.

Power Financial Corp. (TSX:PWF) is a diversified management and holding company with interests, directly or indirectly, in companies in the financial services industries around the world. It pays a quarterly dividend of $0.3725 per share, or $1.49 per share annually, which gives its stock a yield of about 4.9% at today’s levels.

It is also important to note that Power Financial raised its annual dividend payment by 6.4% in 2015, its first annual increase since 2008, and I think its strong operational performance could allow this to be the starting point of an extensive streak of annual increases.

Should you add one of these dividend stocks to your portfolio?

BCE, Valener, and Power Financial are three very attractive dividend-paying investment options. Foolish investors should take a closer look and consider beginning to scale in to positions in one or more 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.

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