The Instant 5-Stock Portfolio for Dividend Investors

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP), Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI), Northview Apartment REIT (TSX:NVU.UN), Bank of Montreal (TSX:BMO)(NYSE:BMO), and North West Company Inc. (TSX:NWC) are five of the best dividend stocks around. Which ones should you buy?

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Building a great portfolio of dividend-paying stocks is not difficult, but it does require quite a bit of research and an understanding of the market. Fortunately for you, I’ve done the necessary research and compiled a list of five stocks with high and safe dividend yields, active streaks of annual increases, and the ability to continue growing their payouts going forward, so let’s take a quick look at each to determine if you should buy them to form your instant five-stock dividend portfolio.

1. Brookfield Infrastructure Partners L.P.

Brookfield Infrastructure Partners L.P. (TSX:BIP.UN)(NYSE:BIP) is one of the world’s largest owners and operators of infrastructure assets, including rail networks, ports, natural gas pipelines and storage facilities, regulated utilities, electricity transmission lines, and communication towers.

It pays a quarterly distribution of US$0.57 per share, or US$2.28 per share annually, which gives its stock a yield of approximately 5.2% at today’s levels. It’s also important to note that the company’s 7.5% distribution hike in February has it on pace for 2016 to mark the seventh consecutive year in which it has raised its annual distribution, and it has long-term distribution growth target of 5-9% annually.

2. Pattern Energy Group Inc.

Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) is one of the world’s largest independent generators of wind power with 16 facilities across the United States, Canada, and Chili.

It pays a quarterly dividend of US$0.39 per share, or US$1.56 per share annually, which gives its stock a yield of approximately 7.4% at today’s levels. It’s also important to note that the company’s six dividend hikes since the start of 2015, including its 2.4% hike last month, have it on pace for 2016 to mark the third consecutive year in which it has raised its annual dividend payment, and it has a long-term dividend-payout target of 80% of its cash available for distribution.

3. Northview Apartment REIT

Northview Apartment REIT (TSX:NVU.UN) is Canada’s third-largest publicly traded multi-family real estate investment trust with ownership interests in over 24,750 suites across 60 markets in eight provinces and two territories. It also owns a portfolio of commercial buildings focused on government and “quality” corporate tenancies.

It pays a monthly distribution of $0.1358 per share, or $1.6296 per share annually, which gives its stock a yield of approximately 7.6% at today’s levels. It’s also important to note that the company has raised its annual distribution for three consecutive years, and I think its strong financial performance will allow this streak to continue in 2016.

4. Bank of Montreal

Bank of Montreal (TSX:BMO)(NYSE:BMO) is Canada’s fourth-largest bank with about $681.5 billion in assets.

It pays a quarterly dividend of $0.86 per share, or $3.44 per share annually, which gives its stock a yield of approximately 4.2% at today’s levels. It’s also important to note that the company’s four dividend hikes since the start of 2015, including its 2.4% hike last month, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment, and it has a long-term dividend-payout target of 40-50% of its net earnings.

5. North West Company Inc.

North West Company Inc. (TSX:NWC) is one of the leading retailers of groceries and everyday products to rural communities and urban neighborhoods in Canada, Alaska, the South Pacific, and the Caribbean, and its banners include Northern, NorthMart, Giant Tiger, and Cost-U-Less.

It pays a quarterly dividend of $0.31 per share, or $1.24 per share annually, which gives its stock a yield of approximately 4.3% at today’s levels. It’s also important to note that the company’s 6.9% dividend hike in September has it on pace for 2016 to mark the fifth consecutive year in which it has raised its regular annual dividend payment.

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. Brookfield Infrastructure Partners is a recommendation of Stock Advisor Canada.

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