As a dividend investor, I’m always on the lookout for high-quality stocks with high and safe yields that can boost my portfolio’s returns and, after a recent search of several industries, I came across four very attractive opportunities with yields over 4%. Let’s take a quick look at each, so you can determine if you should buy one or more of them today.
1. Morneau Shepell Inc.
Morneau Shepell Inc. (TSX:MSI) is one of North America’s leading providers of human resources consulting and outsourcing services, including health and productivity, administrative, and retirement solutions.
It pays a monthly dividend of $0.065 per share, or $0.78 per share annually, giving its stock a yield of about 4.4% at current levels. It’s also important to note that the company has maintained this annual rate since 2011, 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 in the near future.
2. Pembina Pipeline Corp.
Pembina Pipeline Corp. (TSX: PPL)(NYSE: PBA) is a pure-play energy infrastructure company serving the oil and natural gas industries in Canada and North Dakota. Its infrastructure assets include conventional oil, oil sands, and heavy oil pipelines, natural gas pipelines, processing facilities, and fractionation plants, and oil and natural gas storage facilities.
It pays a monthly dividend of $0.16 per share, or $1.92 per share annually, giving its stock a yield of about 4.9% at current levels. It’s also very important to note that the company’s two dividend hikes since the start of 2015, including its 5.2% hike in May 2015 and its 4.9% hike in March of this year, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment.
3. First National Financial Corp.
First National Financial Corp. (TSX: FN) is the parent company of First National Financial LP, which is Canada’s largest non-bank originator and underwriter of mortgages with over $94 billion in mortgages under administration.
It pays a monthly dividend of $0.14167 per share, or $1.70 per share annually, giving its stock a yield of about 5.7% at current levels. It’s also very important to note that the company’s two dividend hikes since the start of 2015, including its 3.3% hike in October 2015 and its 9.7% hike in April of this year, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment.
4. Choice Properties Real Estate Investment Trust
Choice Properties Real Est Invstmnt Trst (TSX: CHP.UN) is one of Canada’s largest REITs. It owns and operates 529 predominantly retail properties located across every province that total approximately 42.3 million square feet.
It pays a monthly distribution of $0.055833 per share, or $0.67 per share annually, giving its stock a yield of about 4.7% at current levels. It’s also very important to note that the 3.1% distribution hike the company announced in November 2015, which was effective for its January 2016 payment, has it on pace for 2016 to mark the first year in which it has raised its annual distribution since its initial public offering in 2013.
