3 Dividend-Growth Stocks With Yields up to 9.4%

Dividend-growth stocks such as Keyera Corp. (TSX:KEY), Alaris Royalty Corp. (TSX:AD), and Aimia Inc. (TSX:AIM) belong in every portfolio. Which should you add to yours?

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As Foolish investors know, dividend-paying stocks generate higher returns than non-dividend-paying stocks over the long term, and the top returners are those that raise their payouts every year. With these facts in mind, let’s take a look at three stocks with yields up to 9.4% and active streaks of annual dividend increases that you could add to your portfolio today.

1. Keyera Corp.

Keyera Corp. (TSX:KEY) is one of Canada’s largest midstream energy companies. It pays a monthly dividend of $0.125 per share, or $1.50 per share annually, which gives its stock a yield of approximately 3.7% at today’s levels.

Investors must also make two notes.

First, the company’s two dividend hikes since the start of 2015, including its 7% hike in March 2015 and its 8.7% hike in August 2015, have it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, I think Keyera’s strong growth of distributable cash flow, including its 19.8% year-over-year growth to $2.84 per share in fiscal 2015, and its conservative payout ratio, including 49.9% in fiscal 2015 compared with 53.3% in fiscal 2014, will allow its streak of annual dividend increases to continue for the next several years.

2. Alaris Royalty Corp.

Alaris Royalty Corp. (TSX:AD) is one of the leading providers of alternative financing solutions to private businesses across North America. It pays a monthly dividend of $0.135 per share, or $1.62 per share annually, which gives its stock a yield of approximately 5.3% at today’s levels.

Investors must also make two notes.

First, the company’s two dividend hikes since the start of 2015, including its 4% hike in June 2015 and its 3.8% hike in July 2015, have it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, Alaris has a target dividend-payout ratio of 100% of its net cash from operating activities, and its projected payout ratio currently stands at just 80% based on its outlook for fiscal 2016, so I think it will raise its dividend when it reports its first-quarter earnings results in May.

3. Aimia Inc.

Aimia Inc. (TSX:AIM) is one of the world’s largest providers of marketing and loyalty analytics services. It pays a quarterly dividend of $0.19 per share, or $0.76 per share annually, which gives its stock a yield of approximately 9.4% at today’s levels.

Investors must also make two notes.

First, the company’s 5.6% dividend hike in May 2015 has it on pace for fiscal 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.

Second, I think Aimia’s ample free cash flow generation, including the $1.12 per share in generated in fiscal 2015, and its modest payout ratio, including 67% in fiscal 2015, will allow its streak of annual dividend increases to continue until fiscal 2017 at least.

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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