One of the keys to success in investing is owning dividend-paying stocks, because as history has shown, they outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at four high-quality stocks with yields of 4-7% that you could add to your portfolio today.
1. Brookfield Property Partners LP
Brookfield Property Partners LP (TSX: BPY.UN)(NYSE:BPY) is a global owner, developer, and operator of diversified, high-quality real estate. Its portfolio includes over 150 office properties and over 120 retail malls around the world. It also has ownership interests in multi-family, triple net lease, industrial, hospitality, and self-storage assets.
It pays a quarterly distribution of US$0.28 per share, or US$1.12 per share annually, giving its stock a yield of about 4.7% at today’s levels.
It’s also important to make the following two notes about Brookfield’s distribution.
First, its 5.7% distribution hike in February has it on pace for 2016 to mark the second consecutive year in which it has raised its annual distribution.
Second, it has a distribution-growth target of 5-8% annually.
2. Rogers Sugar Inc.
Rogers Sugar Inc. (TSX: RSI) is one of Canada’s largest refiners, processors, distributors, and marketers of sugar products, including granulated, cube, icing, liquid, and specialty sugars. Its brands include Lantic Sugar and Rogers Sugar.
It pays a quarterly dividend of $0.09 per share, or $0.36 per share annually, giving its stock a yield of about 6.1% at today’s levels. It has maintained this annual rate since 2013, and its strong growth of free cash flow, including its 23.6% year-over-year increase to $37.8 million in fiscal 2015 and its 3.4% year-over-year increase to $20.6 million in the first half of fiscal 2016, could allow it to continue to do so going forward or allow it to announce a hike when it releases its third-quarter earnings results on July 27.
3. Domtar Corp.
Domtar Corp. (TSX: UFS)(NYSE:UFS) is one of the world’s leading manufacturers and distributors of fibre-based products, including communication, specialty, and packaging papers, papergrade, fluff, and specialty pulp, and absorbent hygiene and personal care products.
It pays a quarterly dividend of US$0.415 per share, or US$1.66 per share annually, giving its stock a yield of about 4.7% at today’s levels. It has also raised its annual dividend payment for five consecutive years, and its two hikes since the start of 2015, including its 3.8% hike in May of this year, have it on pace for 2016 to mark the sixth consecutive year with an increase.
4. Bird Construction Inc.
Bird Construction Inc. (TSX: BDT) is one of Canada’s largest general contractors with 12 offices from coast to coast. It provides both construction and pre-construction services, and its subsidiaries include H.J. O’Connell and Nason Contracting Group.
It pays a monthly dividend of $0.0633 per share, or $0.76 per share annually, giving its stock a yield of about 5.7% at today’s levels. It has maintained this annual rate since 2014, and its very strong growth of operating cash flow, including its 16% year-over-year increase to $75.3 million in fiscal 2015 and its 48.8% year-over-year increase to $15 million in the first-quarter of 2016, could allow it to continue to do so going forward or allow it to announce a hike when it releases its second-quarter earnings results in August.
