One of the most well-known facts about investing is that dividend-paying stocks far outperform their non-dividend-paying counterparts over the long term. It’s for this reason that every long-term investor should own at least one dividend-paying stock and, depending on your age, investment goals, and risk tolerance, maybe even a diversified portfolio full of them. With this in mind, let’s take a look at five stocks with yields of 3-8% that you could buy right now.
1. Power Financial Corp.
Power Financial Corp. (TSX:PWF) is a diversified management and holding company with interests, directly or indirectly, in companies in the financial services sector in Canada, the United States, and Europe. Its principal subsidiaries include Great-West Lifeco Inc. and IGM Financial Inc.
It pays a quarterly dividend of $0.3925 per share, or $1.57 per share annually, which gives its stock a yield of approximately 5.1% at today’s levels. Investors must also note that the company’s 5.4% dividend hike in March has it on pace for 2016 to mark the second consecutive year in which it has raised its annual dividend payment.
2. Capital Power Corp.
Capital Power Corp. (TSX: CPX) is a growth-oriented North American power producer with 18 facilities across Canada and the United States that have a capacity of more than 3,200 megawatts. Its facilities generate power from a variety of energy sources, including natural gas, wind, coal, solid fuels, and solar.
It pays a quarterly dividend of $0.365 per share, or $1.46 per share annually, which gives its stock a yield of approximately 7.7% at today’s levels. Investors must also note that the company’s 7.4% dividend hike in July 2015 has it on pace for 2016 to mark the third consecutive year in which it has raised its annual dividend payment, and it has a dividend-per-common-share growth target of 7% annually through 2018.
3. Home Capital Group Inc.
Home Capital Group Inc. (TSX: HCG) is one of Canada’s largest non-bank mortgage lenders with approximately $27.95 billion in assets under administration.
It pays a quarterly dividend of $0.24 per share, or $0.96 per share annually, which gives its stock a yield of approximately 3% at today’s levels. Investors must also note that the company’s 9.1% dividend hike in February has it on pace for 2016 to mark the 17th consecutive year in which it has raised its annual dividend payment.
4. Dorel Industries Inc.
Dorel Industries Inc. (TSX: DII.B) is one of the world’s leading manufacturers, marketers, and distributors of juvenile products, home furnishings, and sporting goods. Its product offerings include carseats, strollers, sofas, tables, mattresses, and bicycles, and its brands include Safety 1st, Quinny, COSCO, Signature Sleep, Mongoose, and Schwinn.
It pays a quarterly dividend of US$0.30 per share, or US$1.20 per share annually, which gives its stock a yield of approximately 4.4% at today’s levels. Investors must also note that the company has maintained this annual rate since 2013.
5. Acadian Timber Corp.
Acadian Timber Corp. (TSX: ADN) is one of the leading suppliers of primary forest products in eastern Canada and the northeastern United States, and it’s the second-largest timberland operator in New Brunswick and Maine with approximately 2.4 million acres of land under management.
It pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, which gives its stock a yield of approximately 6.2% at today’s levels. Investors must also note that the company’s two dividend hikes since the start of 2015, including its 11.1% hike in October, have it on pace for 2016 to mark the second consecutive year in which it has raised its annual dividend payment.
