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Dividend stocks should be core holdings in every investor’s portfolio, because as history has shown, they far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a closer look at three with yields of 3-5% that you could buy right now.
Telus Corporation (TSX:T)(NYSE:TU) is the third-largest and fastest-growing national telecommunications company in Canada with about 12.7 million subscribers as of March 31, including 8.6 million wireless subscribers and 1.7 million internet subscribers.
Telus pays a quarterly dividend of $0.4925 per share, equal to $1.97 per share on an annualized basis, which gives its stock a yield of about 4.4% today. It’s also currently on pace for 2017 to mark the 14th consecutive year in which it has raised its annual dividend payment, and it has a dividend-growth program in place that calls for annual growth of 7-10% through 2019, making it a very attractive dividend-growth play.
Parkland Fuel Corp.
Parkland Fuel Corp. (TSX:PKI) is Canada’s largest, and one of North America’s fastest-growing, independent marketers of fuel and petroleum products. Its family of brands includes Bluewave Energy, Columbia Fuels, Farstad Oil, Fas Gas Plus, RaceTrac, and Sparlings Propane.
Parkland pays a monthly dividend of $0.09617 per share, equal to $1.154 per share on an annualized basis, and this gives it a yield of approximately 3.8% today. The company is also on pace for 2017 to mark the fifth consecutive year in which it has raised its annual dividend payment, and I think its strong financial performance, including its 17.5% year-over-year increase in adjusted distributable cash flow to $46.4 million in the first quarter of 2017, will allow this streak to continue for the next decade at least.
Fiera Capital Corp.
Fiera Capital Corp. (TSX:FSZ) is one of the largest independent asset management firms in Canada. It provides a wide range of traditional and alternative investment solutions to institutional investors, private wealth clients, and retail investors in Canada, the United States, and Europe.
Fiera pays a quarterly dividend of $0.17 per share, equal to $0.68 per share on an annualized basis, giving it a yield of about 5% today. It’s also currently on pace for 2017 to mark the seventh consecutive year in which it has raised its annual dividend payment, and I think its very strong operational performance, including its 8.7% year-over-year increase in adjusted net earnings to $0.25 per share in the first quarter of 2017, will allow this streak to continue for another seven years.
Which of these stocks belongs in your portfolio?
I think Telus, Parkland Fuel, and Fiera Capital represent very attractive investment opportunities for long-term investors, so take a closer look at each and strongly consider adding at least one of them to your portfolio today.
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Fool contributor Joseph Solitro has no position in any stocks mentioned.