As a dividend investor, I’m always on the lookout for stocks that can boost my portfolio’s returns and, after a recent search of several industries, I came across four small caps with high and safe yields of 6-10%. Let’s take a quick look at each, so you can determine if you should invest in one of them today.
1. Aimia Inc.
Aimia Inc. (TSX: AIM) is one of the world’s largest data-driven marketing and loyalty analytics companies, providing clients with customer insights they need in order to make smarter business decisions. Its subsidiaries include Aeroplan, Air Miles Middle East, Cardlytics, Nectar, Club Premier, China Rewards, and 11Ants Analytics.
It pays a quarterly dividend of $0.20 per share, or $0.80 per share annually, which gives its stock a yield of approximately 9.8% at today’s levels. It’s also very important to note that its two dividend hikes since the start of 2015, including its 5.3% hike last month, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.
2. Rogers Sugar Inc.
Rogers Sugar Inc. (TSX: RSI) is one of Canada’s largest refiners, processors, distributors, and marketers of sugar products, including granulated, cube, yellow, brown, liquid, and specialty sugars, and it’s the company behind the Lantic and Rogers trade names.
It pays a quarterly dividend of $0.09 per share, or $0.36 per share annually, which gives its stock a yield of approximately 6.1% at today’s levels. It’s also important to note that it has maintained this annual rate since 2013, and its increased amount of free cash flow could allow it to continue to do so going forward or allow it to announce a slight hike before the end of the year.
3. Pure Industrial Real Estate Trust
Pure Industrial Real Estate Trust (TSX:AAR.UN) is one of North America’s largest owners and operators of industrial properties with 167 properties across Canada and the United States that total about 17.8 million square feet.
It pays a monthly distribution of $0.026 per share, or $0.312 per share annually, which gives its stock a yield of approximately 6.1% at today’s levels. It’s also important to note that it has maintained this annual rate since 2013, and its consistent generation of adjusted funds from operations could allow it to continue to do so for the foreseeable future.
4. Ensign Energy Services Inc.
Ensign Energy Services Inc. (TSX: ESI) is one of the world’s leading land-based drilling and well-servicing contractors, serving the oil, natural gas, and geothermal energy industries.
It pays a quarterly dividend of $0.12 per share, or $0.48 per share annually, which gives its stock a yield of approximately 6.5% at today’s levels. It’s also very important to note that it has raised its annual dividend payment for 20 consecutive years, and although it has been under pressure as a result of lower commodity prices and rig counts, I think its ample amount of operating cash flow could allow this streak to continue in 2016.
