Dividend stocks should be core holdings in every 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 with yields up to 4.6% and extensive track records of raising their annual dividend payments, so you can determine if you should buy one or more of them today.
1. CI Financial Corp.
CI Financial Corp. (TSX: CIX) is the third-largest investment fund company in Canada with $111.1 billion in assets under management and $34.6 billion in assets under advisement as of December 31, 2015. It pays a monthly dividend of $0.11 per share, or $1.32 per share annually, which gives its stock a yield of about 4.6% at today’s levels.
It is also very important for investors to note that CI Financial has raised its annual dividend payment for six consecutive years, and its 4.8% hike in June 2015 has it on pace for 2016 to mark the seventh consecutive year with an increase.
2. Rogers Communications Inc.
Rogers Communications Inc. (TSX: RCI.B)(NYSE: RCI) is one of the largest communications and media companies in Canada. It pays a quarterly dividend of $0.48 per share, or $1.92 per share annually, which gives its stock a yield of about 3.85% at today’s levels.
Investors must also note that Rogers has raised its annual dividend payment for 11 consecutive years, and I think its increased amount of free cash flow, including its 16.6% year-over-year growth to $1.68 billion in fiscal 2015, will allow this streak to continue in 2016.
3. ATCO Ltd.
ATCO Ltd. (TSX: ACO.X) is a diversified global corporation with operations in the utilities, energy, structures, and logistics industries, and its principal subsidiaries include Canadian Utilities Limited. It pays a quarterly dividend of $0.285 per share, or $1.14 per share annually, which gives its stock a yield of about 3% at today’s levels.
It is also very important for investors to note that ATCO has raised its annual dividend payment for 22 consecutive years, tying it with one other company for the fourth-longest active streak for a public corporation in Canada. Its 15.2% increase in January has it on pace for 2016 to mark the 23rd consecutive year with an increase.
Should you buy a dividend stock today?
CI Financial, Rogers Communications, and ATCO Ltd. are three of the best dividend-paying investment options in the market today. Foolish investors should strongly consider beginning to scale in to long-term positions in at least one of them over the next couple of trading sessions.
