As a dividend investor, I am always on the lookout for stocks with high and safe yields that can boost my portfolio’s returns and, after a recent search of several industries, I came across three very attractive opportunities. Let’s take a quick look at each, so you can decide if you should buy one of them today.
1. Capital Power Corporation
Capital Power Corporation (TSX: CPX) is one of North America’s largest independent power producers with 18 natural gas, wind, coal, solid fuels, and solar power generation facilities across Canada and the United States. It pays a quarterly dividend of $0.365 per share, or $1.46 per share annually, which gives its stock a yield of about 8.3% at today’s levels.
It is also important for investors to make the following two notes.
First, Capital Power’s 7.4% dividend hike in July 2015 has it on pace for fiscal 2016 to mark the third consecutive year in which it has raised its annual dividend payment.
Second, the company has an annual dividend-per-common-share growth target of approximately 7% through 2018, making it a very attractive dividend-growth play.
2. Enercare Inc.
Enercare Inc. (TSX:ECI) is one of Canada’s largest home and commercial services and energy solutions companies, providing water heaters, furnaces, air conditioners, and other related products and services, and it is also one of the country’s largest non-utility sub-meter providers for condominiums and apartment complexes. It pays a monthly dividend of $0.07 per share, or $0.84 per share annually, which gives its stock a yield of about 5.3% at today’s levels.
It is also important for investors to make the following two notes.
First, Enercare’s 15.9% dividend hike in March 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 the company’s very strong financial performance, including its 18% year-over-year increase in normalized pro-forma distributable cash to $1.18 per share in fiscal 2015, and its modest payout ratio, including 69.9% of its distributable cash in fiscal 2015, will allow its streak of annual dividend increases to continue going forward.
3. First Capital Realty Inc.
First Capital Realty Inc. (TSX:FCR) is one of Canada’s largest owners, developers, and managers of grocery-anchored commercial real estate with interests in 160 properties across four provinces. It pays a quarterly dividend of $0.215 per share, or $0.86 per share annually, which gives its stock a yield of about 4.3% at today’s levels.
It is also important for investors to make the following two notes.
First, First Capital has raised its annual dividend payment in each of its last four fiscal years.
Second, I think the company’s increased amount of adjusted funds from operations (AFFO), including its 2% year-over-year increase to $1.02 per share in fiscal 2015, its modest payout ratio, including 84.3% of its AFFO in fiscal 2015, its high occupancy rate, and its growing asset base will allow it to continue its streak of annual dividend increases by announcing a small hike when it releases its first-quarter earnings results on May 11.
