If you’re looking to boost your portfolio’s yield, then you’ve come to the right place. I’ve scoured the market and compiled a list of three mid caps with high and safe yields of 4-7%, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
1. H&R Real Estate Investment Trust
H&R Real Estate Investment Trust (TSX: HR.UN) is one of the largest diversified REITs in North America with ownership interests in 520 office, retail, industrial, and residential properties in Canada and the United States. It pays a monthly distribution of $0.1125 per share, or $1.35 per share annually, which gives its stock a yield of about 6.45% at today’s levels.
Investors must also make two notes.
First, H&R has maintained its current annual distribution rate since 2013.
Second, I think its increased amount of funds from operations, including its 3.7% year-over-year growth to $1.95 per share in fiscal 2015, and its low payout ratio, including 69.2% in fiscal 2015 compared with 71.8% in fiscal 2014, could allow it to announce a slight distribution hike within the next few months.
2. Genworth MI Canada Inc.
Genworth MI Canada Inc. (TSX:MIC) is the largest private residential mortgage insurer in Canada with over $6.2 billion in assets. It pays a quarterly dividend $0.42 per share, or $1.68 per share annually, which gives its stock a yield of about 5.4% at today’s levels.
Investors must also note that Genworth has raised its regular annual dividend payment every year since it began paying a dividend in 2009, resulting in six consecutive years of increases, and its 7.7% hike in October 2015 has it on pace for 2016 to mark the seventh consecutive year with an increase.
3. Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. (TSX: AQN) is a growing renewable energy and regulated utility company with assets across North America, including hydroelectric, wind, thermal, and solar power facilities. It pays a quarterly dividend of US$0.09625 per share, or US$0.385 per share annually, which gives its stock a yield of about 4.6% at today’s levels.
Investors must also make two notes.
First, Algonquin has raised its annual dividend payment for five consecutive years, and its 10% hike in May 2015 has it on pace for 2016 to mark the sixth consecutive year with an increase.
Second, the company has a long-term goal of raising its dividend by 10% annually, making it one of the best dividend-growth plays in the utilities industry.
Could your portfolio use more yield?
H&R REIT, Genworth MI Canada, and Algonquin Power & Utilities are three of the most attractive dividend-paying mid caps in their respective industries. Foolish investors should strongly consider beginning to scale in to long-term positions in one or more of them today.
