One of the most well-known facts about investing is that dividend-paying stocks far outperform non-dividend-paying stocks 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 four high-quality stocks with yields over 3% that you could buy right now.
1. Finning International Inc.
Finning International Inc. (TSX: FTT) is the world’s largest Caterpillar dealer. It sells, rents, and provides parts and services for equipment and engines to customers in some of the most resource-rich territories in western Canada, Chile, Argentina, Bolivia, the U.K., and Ireland.
It pays a quarterly dividend of $0.1825 per share, or $0.73 per share annually, giving its stock a yield of about 3.5% at current levels. Investors must also note that the company has raised its annual dividend payment for 14 consecutive years, and its 2.8% hike in May 2015 has it on pace for 2016 to mark the 15th consecutive year with an increase.
2. DH Corp.
DH Corp. (TSX:DH) is one of the world’s leading providers of financial technology and related solutions to banks, credit unions, specialty lenders, and other financial institutions. Its products and solutions allow its clients to process payments, streamline loan originations, process and manage data, produce cheques, and provide subscription-based financial products to their customers safely and efficiently.
It pays a quarterly dividend of $0.32 per share, or $1.28 per share annually, giving its stock a yield of about 4% at current levels. Investors must also note that the company has maintained this annual rate since 2013, and its strong growth of adjusted operating cash flow could allow it to continue to do so going forward or allow it to announce a significant hike in the near future.
3. Allied Properties Real Estate Investment
Allied Properties Real Estate Investment (TSX: AP.UN) is one of Canada’s largest REITs. It owns and manages 154 urban office properties across 10 markets that total approximately 11.6 million square feet.
It pays a monthly distribution of $0.125 per share, or $1.50 per share annually, giving its stock a yield of about 3.9% at current levels. Investors must also note that the company has raised its annual distribution for four consecutive years, and its 2.7% hike in December has it on pace for 2016 to mark the fifth consecutive year with an increase.
4. Suncor Energy Inc.
Suncor Energy Inc. (TSX: SU)(NYSE: SU) is Canada’s largest integrated oil and gas company. Its operations include oil sands development and upgrading, conventional and offshore oil and gas production, petroleum refining, product marketing, and renewable power generation.
It pays a quarterly dividend of $0.29 per share, or $1.16 per share annually, giving its stock a yield of about 3.2% at current levels. Investors must also note that the company has raised its annual dividend payment for 13 consecutive years, and its 3.6% hike in July 2015 has it on pace for 2016 to mark the 14th consecutive year with an increase.
