If youâre in search of a great dividend stock to add to your portfolio, then this article is for you. I’ve scoured the financial sector and compiled a list of four high-quality stocks with high and safe yields of 3-6%, so letâs take a quick look at each to determine which would fit best in your portfolio.
1. Fiera Capital Corp.
Fiera Capital Corp. (TSX: FSZ) is one of North Americaâs largest independent asset managers, providing expertise in both traditional and alternative investment strategies. It has approximately $98 billion in assets under management as of March 31, 2016.
It pays a quarterly dividend of $0.15 per share, or $0.60 per share annually, giving its stock a yield of about 4.7% at current levels. Itâs also very important to note that its three dividend hikes since the start of 2015, including its 7.1% hike in March of this year, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.
2. Power Financial Corp.
Power Financial Corp. (TSX:PWF) is a diversified management and holding company with interests in companies in the financial services sector in Canada, the United States, and Europe. Its subsidiaries include Great-West Lifeco Inc., IGM Financial Inc., and Pargesa Holding SA.
It pays a quarterly dividend of $0.3925 per share, or $1.57 per share annually, giving its stock a yield of about 5.4% at current levels. Itâs also very important to note that its 5.4% dividend hike in March has it on pace for 2016 to mark the second consecutive year in which it has raised its annual dividend payment.
3. TMX Group Limited
TMX Group Limited (TSX: X) operates cash and derivative markets for multiple asset classes, including equities, fixed income, and energy. It also provides clearing facilities, data products, and related services to the international financial community.
It pays a quarterly dividend of $0.40 per share, or $1.60 per share annually, giving its stock a yield of about 3% at current levels. Itâs also important to note that it has maintained this annual rate since 2011, and its consistent generation of operating cash flow could allow it to continue to do so for many years to come.
4. Royal Bank of Canada
Royal Bank of Canada (TSX: RY)(NYSE: RY) is Canadaâs largest bank with approximately $1.15 trillion in assets as of April 30, 2016.
It pays a quarterly dividend of $0.81 per share, or $3.24 per share annually, giving its stock a yield of about 4.2% at current levels. Itâs also very important to note that its three dividend hikes since the start of 2015, including its 2.5% hike in February of this year, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.
