If your portfolio lacks yield and you’re ready to do something about it in a big way, then you’ve come to the right place. I’ve scoured the market and compiled a list of four stocks with high and safe yields of 8% or more, so let’s take a quick look at each to determine which one belongs in your portfolio.
1. Corus Entertainment Inc.
Corus Entertainment Inc. (TSX: CJR.B) is one of the world’s leading media and content companies. It delivers its brands and content to audiences in more than 160 countries, and its assets include 45 specialty television services, 15 conventional television stations, 39 radio stations, and a content creation business.
It pays a monthly dividend of $0.095 per share, or $1.14 per share annually, which gives its stock a yield of about 8.6% at current levels. This yield is supported by its strong generation of free cash flow, including $58.8 million in its six-month period ended on February 29, 2016, which more than covered its dividend payments of $45.3 million in the same period.
Investors must also note that the company’s 4.6% dividend hike in February 2015 has it on pace for fiscal 2016 to mark the 13th consecutive fiscal year in which it has raised its annual dividend payment.
2. Artis Real Estate Investment Trust
Artis Real Estate Investment Trust (TSX: AX.UN) is one of North America’s largest REITs. It owns and operates 252 office, retail, and industrial properties located across 10 major markets in Canada and the United States that total approximately 26.2 million square feet.
It pays a monthly distribution of $0.09 per share, or $1.08 per share annually, which gives its stock a yield of about 8% at current levels. This yield is supported by its consistent generation of adjusted funds from operations, including $0.32 per share in its three-month period ended on March 31, 2016, which more than covered its distributions of $0.27 per share in the same period.
Investors must also note that the company has maintained its current annual distribution rate since 2009.
3. Gibson Energy Inc.
Gibson Energy Inc. (TSX: GEI) is one of North America’s largest independent midstream energy companies. Its service offerings include transporting, storing, blending, processing, marketing, and distributing crude oil, condensate, natural gas liquids, water, oilfield waste, and refined products.
It pays a quarterly dividend of $0.33 per share, or $1.32 per share annually, which gives its stock a yield of about 8.8% at current levels. This yield is supported by its strong generation of distributable cash flow, including $181 million in its 12-month period ended on March 31, 2016, which more than covered its dividend payments of $162.7 million in the same period.
Investors must also note that the company’s 3.1% dividend hike in March has it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment.
4. Veresen Inc.
Veresen Inc. (TSX:VSN) owns and operates a diversified portfolio of energy infrastructure in North America. Its assets include natural gas pipelines and processing facilities, natural gas liquids extraction facilities, gas-fired and renewable power generation facilities, and energy distribution systems.
It pays a monthly dividend of $0.0833 per share, or $1.00 per share annually, which gives its stock a yield of about 9.1% at current levels. This yield is supported by its consistent generation of distributable cash, including $0.27 per share in its three-month period ended on March 31, 2016, which more than covered its dividend payments of $0.25 per share in the same period.
Investors must also note that the company has maintained its current annual dividend rate since 2007.
