Whether you’ve just opened your first brokerage account or have been investing for years, you must own at least one dividend-paying stock, because they far outperform non-dividend-paying stocks over the long term. With this in mind, I’ve scoured the market and compiled a list of four high-quality stocks with high and safe yields over 5%, so let’s take a quick look at each to determine which would fit best in your portfolio.
1. Pizza Pizza Royalty Corp.
Pizza Pizza Royalty Corp. (TSX: PZA) owns the trademarks and other intellectual properties associated with the Pizza Pizza and Pizza 73 brands in Canada, and it licenses these properties for use in operating and franchising quick-service restaurants in exchange for a royalty of 6% of sales at Pizza Pizza and 9% of sales at Pizza 73.
It pays a monthly dividend of $0.0713 per share, or $0.856 per share annually, which gives its stock a yield of about 5.9% at current levels. It’s also very important to note that the company’s three distribution hikes since the start of 2015, including its 2% hike in April 2015, its 2.5% hike in November 2015, and its 2.4% hike earlier this month, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual distribution.
2. Extendicare Inc.
Extendicare Inc. (TSX: EXE) is one of Canada’s leading providers of care and services for seniors. It has a network of 118 senior care and living centres, including 64 company-owned and 54 managed locations, as well as home healthcare operations, and its brands include Extendicare, Esprit, and ParaMed.
It pays a monthly dividend of $0.04 per share, or $0.48 per share annually, which gives its stock a yield of about 5.8% at current levels. It’s also important to note that the company has maintained this annual rate since 2014, and its ample amount of adjusted funds from operations could allow it to continue to do for the next several years.
3. 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, including softwood and hardwood sawlogs, pulpwood, and biomass by-products, and it’s the second-largest timberland operator in New Brunswick and Maine.
It pays a quarterly dividend of $0.25 per share, or $1.00 per share annually, which gives its stock a yield of about 6% at current levels. It’s also very important to note that the company’s two dividend hikes since the start of 2015, including its 9.1% hike in February 2015 and its 11.1% hike in October 2015, have it on pace for 2016 to mark the second consecutive year in which it has raised its annual dividend payment.
4. Morguard Real Estate Investment Trust
Morguard Real Estate Inv. (TSX: MRT.UN) is a real estate investment trust that owns and operates a diversified portfolio of 50 retail, office, and industrial properties across six provinces comprising of approximately 8.8 million square feet.
It pays a monthly distribution of $0.08 per share, or $0.96 per share annually, which gives its stock a yield of about 6.6% at current levels. It’s also important to note that the company 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.
