There’s so much more to identifying a great dividend-paying stock than just looking at the yield. Between diversifying your portfolio, looking at payout ratios, considering past performance, future potential, and the competitive market space, finding a great pick can be — in a word — overwhelming.
Fortunately, there’s no shortage of stocks to pick from in a market that touches nearly every corner of the economy.
Here are a few dividend-paying opportunities for investors to consider.
Corus Entertainment
Corus Entertainment Inc. (TSX: CJR.B) purchased the media division from Shaw Communications Inc. last year, which transformed Corus into a media heavyweight in Canada; it controls over a third of English language programming in Canada.
The company hasn’t looked back since that deal. The stock is up nearly 15% over the course of the past year, and Corus pays a monthly dividend of $0.095 per share, which translates into a very attractive 8.64% yield.
With healthy profit margins that have remained relatively consistent over the year, and a low payout ratio of under 30%, Corus is quickly becoming a top dividend pick for investors. The company has made a commitment to pay down debt during 2017, and while this might result in a cut to dividends, the healthier balance sheet could prove beneficial over the long run.
Finally, even a 50% payout ratio, however unlikely, would still result in Corus paying out a healthy monthly dividend.
Acadian Timber Corp.
Acadian Timber Corp. (TSX: ADN) is the second-largest timberland operator across both New Brunswick and Maine. Acadian provides primary forest products, primarily softwood and hardwood sawlogs as well as biomass by-products.
Despite being a large timberland operator, Acadian has developed a knack for being one of those companies that can fly under the radar, but the dividend income Acadian offers may soon change that.
Acadian pays a quarterly dividend of $0.25 per share, which reflects a very impressive yield of 5.75% at the current stock price. Acadia’s dividend has increased by over 20% over the past five years, and the company still manages to keep a relatively low payout ratio.
Canadian National Railway Company
Canadian National Railway Company (TSX: CNR)(NYSE: CNI) pays a yield of just 1.64%, but what makes Canadian National attractive is the massive, indestructible moat surrounding the company.
Canadian National is a Tier 1 railroad which also happens to be the only railroad on the continent that has direct access to three coastlines. The thousands of kilometres of track that have been built up over the years form part of a defensive moat that not only keeps Canadian National at the forefront of the rail industry, but also prevents others from surpassing the Montreal-based company.
Additionally, Canadian National has the benefit of being both more diversified and more efficient than any of its peers, not to mention that it runs at a quicker speed than rivals.
The quarterly dividend of $0.375 which Canadian National pays is not only stable, but likely to grow over the years, continuing a growth stretch that now spans 16 years. Once compounding is taken into consideration, that 1.64% yield looks a lot more attractive over the long term.
TD Bank
There are plenty of reasons to consider investing in Toronto-Dominion Bank (TSX: TD)(NYSE: TD), but the most compelling has to do with the size of the bank and the footprint that TD has in the U.S. market, which many speculate is about to heat up.
TD has a huge exposure to the U.S. market. In fact, TD has more branches in the U.S. than in Canada at this point. With a Trump presidency that is going to be focused on domestic growth, jobs, tax cuts, and a stronger dollar, there are plenty of growth opportunities for a well-positioned TD.
TD currently pays a quarterly dividend of $0.55 per share, which amounts to a solid 3.30% yield. If the current dividend is not reason enough to invest in TD, consider that over the past year the stock has risen by nearly 35% and that TD has hiked the dividend consistently over the past few years.
TD definitely fits into the realm of buy-and-hold stocks.
