Get Yields of 4-7% From These 3 Dividend-Growth Stocks

Dividend stocks such as Altagas Ltd. (TSX:ALA), Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), and Brookfield Canada Office Properties (TSX:BOX.UN)(NYSE:BOXC) belong in every portfolio. Which should you buy?

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As history has shown, dividend-paying stocks outperform non-dividend-paying stocks over the long term, and the top performers are those that raise their payouts every year. It is for this reason that every long-term investor should own at least one dividend-growth stock, so let’s take a look at three with high and safe yields of 4-7% that you could buy today.

1. Altagas Ltd.

Altagas Ltd. (TSX:ALA) is a diversified energy infrastructure company with a mix of gas, power, and utilities assets. It pays a monthly dividend of $0.165 per share, or $1.98 per share annually, which gives its stock a yield of about 6.1% at today’s levels.

Investors must also make two notes.

First, Altagas has raised its annual dividend payment for five consecutive years, and its two increases in the last 12 months, including its 8.5% hike in May 2015 and its 3.1% hike in October 2015, has it on pace for 2016 to mark the sixth consecutive year with an increase.

Second, the company has stated that it expects its normalized funds from operations to grow by approximately 15% in 2016, so if it can deliver this type of growth, I think it will announce two more dividend increases in 2016.

2. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth-largest bank in Canada with approximately $479 billion in total assets. It pays a quarterly dividend of $1.18 per share, or $4.72 per share annually, which gives its stock a yield of about 4.9% at today’s levels.

Investors must also make three notes.

First, CIBC has raised its dividend for six consecutive quarters.

Second, the company has raised its annual dividend payment for five consecutive years, and its numerous increases, including its 2.6% hike in February, has it on pace for 2016 to mark the sixth consecutive year with an increase.

Third, it has a target dividend-payout range of 40-50% of its adjusted net earnings, so I think its consistent growth, including its 8.1% year-over-year increase to $2.55 per share in the first quarter of fiscal 2016, will allow its streak of quarterly and annual dividend increases to continue going forward.

3. Brookfield Canada Office Properties

Brookfield Canada Office Properties (TSX:BOX.UN)(NYSE:BOXC) is a real estate investment trust that owns a portfolio of 26 “premier” office properties in the downtown cores of Toronto, Calgary, and Ottawa. It pays a monthly distribution of $0.1092 per share, or $1.31 per share annually, which gives its stock a yield of about 4.6% at today’s levels.

Investors must also note that Brookfield has raised its annual dividend payment for five consecutive years, and its 5.7% hike in January has it on pace for 2016 to mark the sixth consecutive year with an increase.

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. Altagas is a recommendation of Stock Advisor Canada.

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