2 Financial Stocks With Yields Over 4%

If you are looking for investments with good dividend yields and solid dividend histories, there are two financial stocks, including Great-West Lifeco Inc. (TSX:GWO), you might want to consider.

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If you are looking for investments with good dividend yields and solid dividend histories, there are two financial stocks you might want to consider. Let’s take a closer look at these stocks, their dividends and how each is faring in 2017.

Great-West Lifeco Inc. (TSX:GWO), with over 12 million customers and $95 billion in retirement and investment holdings, is a leading player in the insurance and investment industry in Canada. It has been in business over 125 years and offer customers “an array of choices for life, health, disability and critical illness insurance for individuals and families, as well as investment, savings and retirement income plans and annuities.”

Looking at current levels, Great-West trades 13.4 times 2017’s estimated earnings per share of 2.64. Its current quarterly dividend is $0.367, equal to $1.47 per share annually.

It’s good to note that Great-West’s dividend-payout rate has remained nice and steady over the years. After spending 2014 and 2015 at 3.9% and 3.8%, respectively, dividends moved back above the 4% mark in 2016. In 2017, Great-West’s dividend yield is a healthy 4.17%.

Great-West has a net profit margin of 6.29%, which is comparable to other companies in its industry.

AGF Management Limited (TSX:AGF.B) provides asset management services to both individuals and institutions across North America, the U.K., Ireland, and Asia. It’s the first mutual fund in Canada to invest solely in U.S. equities. AGF currently has $36.3 billion assets under management.

At current levels, AGF trades at 12.4 times 2017’s estimated earnings per share of 0.56. Its current quarterly dividend is $0.080, equal to $0.32 per share annually. AGF used to boast dividend rates over 10%. After hitting a five-year low of 3.83% in 2016, dividends are back on the upswing with a yield of 4.73% this year.

AGF’s second-quarter results for 2017 beat analyst estimates and improved over last year’s second-quarter results by 23.08%. It also has a net profit margin of 9.68%, making it one of the best companies in the financial industry at creating profit.

Investor takeaway

Both Great-West and AGF are solid dividend performers. If you are looking for stocks with reliable dividend income, consider adding either of these to your portfolio.

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.

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