Some investors, like retirees, are looking for stocks that pay high dividends, because dividends are a regular source of income that can increase if the company is doing well.
There are many stocks trading on the TSX that have high dividend yields, but not all of them are equal in terms of quality. You should look for companies that have enough money to pay their dividends and can increase them, as well as good perspectives of growth to benefit from a stock price appreciation.
Below are fours stocks that have dividend yields over 4% which are worth considering.
Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is a global financial institution. This bank currently pays a quarterly dividend of $1.27 per share, which represents a yield of 4.6% given the current stock price.
CIBC has increased its dividend about twice a year in the last five years with a rise of about $0.03 per share each time. The stock’s 10-year-average dividend-growth rate is 4.8%.
Net income grew by 10.26% year over year to $2.58 per share during the most recent quarter. CIBC’s one-year forward P/E is 9.86, so it’s cheap.
Telus Corporation
Telus Corporation (TSX:T)(NYSE:TU) is a telecommunications company. The last quarterly dividend paid by the company, on April 3, was $0.48 per share, which represents a yield of 4.3% given the current stock price.
Telus has increased its dividend about twice a year in the last five years, with a rise of around $0.02 per share each time. The stock’s 10-year-average dividend-growth rate is 15.15%.
Telus declared on May 11 that it will increase its quarterly dividend to $0.4925 per common share with the second-quarter payout in July. That’s up 2.6% from $0.48 in this year’s first-quarter payout. The increased dividend is in line with the company’s policy of raising dividend by 7-10% annually.
Net income grew by 15.13% year over year to $0.73 per share during the most recent quarter. Telus’s one-year forward P/E is 16.46.
Emera Inc.
Emera Inc. (TSX:EMA) is an energy and services company which invests in electricity generation, transmission and distribution, gas transmission, and utility services. This company currently pays a quarterly dividend of $0.5225 per share, which represents a yield of 4.3% given the current stock price.
Emera has increased its dividend at least twice a year in the last five years, with rises varying between $0.0125 and $0.075. The stock’s 10-year-average dividend-growth rate is 4.8%. The company targets an 8% average annual dividend growth through 2020.
Emera is in a high-growth phase. Its net income grew by 395.52% year over year to $1.47 per share during the most recent quarter. Emera’s one-year forward P/E is 18.
BCE Inc.
BCE Inc. (TSX:BCE)(NYSE:BCE) is a communications company. The company’s segments include Bell Wireless, Bell Wireline, and Bell Media. BCE currently pays a quarterly dividend of $0.7175 per share, which represents a yield of 4.7% given the current stock price.
BCE has increased its dividend once a year in the last five years, with a rise of around $0.03 per share each time. The stock’s 10-year-average dividend-growth rate is 7.54%.
Net income declined by 4.89% year over year to $0.77 per share during the most recent quarter. However, these results were among the strongest results reported by any company in the telecommunications industry. BCE’s one-year forward P/E is 17.62.
