4 Top Financial Stocks With Yields up to 5.4%

Looking to buy a great dividend stock? If so, Fiera Capital Corp. (TSX:FSZ), Power Financial Corp. (TSX:PWF), TMX Group Limited (TSX:X), and Royal Bank of Canada (TSX:RY)(NYSE:RY) are some of your best options from the financial sector.

| More on:
The Motley Fool

If you’re 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 let’s 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 America’s 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. It’s 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. It’s 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. It’s 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 Canada’s 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. It’s 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

edit Woman in skates works on laptop
Dividend Stocks

3 No-Brainer Stocks to Buy Under $30

These three stocks all offer a huge deal for investors looking for dividends, as well as growth that will last.

Read more »

You Should Know This
Dividend Stocks

How to Convert a $300 Monthly Investment Into $338 in Monthly Income

If you want a certain amount in monthly passive income, invest a similar amount today and leave the rest to…

Read more »

Increasing yield
Dividend Stocks

3 Income Stocks With Big Yields to Consider in April 2024

If you haven’t yet made your March investments, here are three income stocks to buy the dip and lock in…

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: Don’t Miss Out on This Contribution Hack!

This hack has so many benefits for you -- not just when you put it in your RRSP but for…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Passive Income: 2 Safe Dividend Stocks to Own for the Next 10 Years

Dividend stocks such as Manulife and Fortis can help you generate a stable and recurring passive-income stream.

Read more »

Young woman sat at laptop by a window
Dividend Stocks

3 Dividend Stocks Everyone Should Own for the Long Haul

For investors looking for top-tier dividend stocks to buy and hold for the long term, here are three of my…

Read more »