Savvy investors are turning to monthly dividend stocks to supplement their income, because savings accounts, Guaranteed Investment Certificates (GICs), and bonds simply don’t offer yields anywhere close to what can be earned in the stock market. With this in mind, let’s take a closer look at three top income stocks with yields of 4-8% that you could invest in today.
Vermilion Energy Inc.
Vermilion Energy Inc. (TSX: VET)(NYSE: VET) is one of the world’s largest exploration and production companies with operations in Europe, North America, and Australia, and it’s the largest oil producer in France.
Vermilion pays a monthly dividend of $0.215 per share, representing $2.58 per share annually, which gives it a yield of about 6.2% today. The company has paid monthly dividends uninterrupted and without reduction since September 2003, and it has maintained its current rate since January 2014, which makes it one of the energy sector’s most reliable dividend stocks.
A and W Revenue Royalties Income Fund
A and W Revenue Royalties Income Fund (TSX: AW.UN), or “The Fund” for short, indirectly owns the trademarks and trade names associated with the A&W restaurant brand in Canada, and it licenses these properties to A&W Food Services of Canada for use in operating restaurants in exchange for a royalty of 3% of sales at the 861 restaurants in its royalty pool.
The Fund currently pays a monthly distribution of $0.133 per unit, equal to $1.596 per unit annually, and this gives it a 4.7% yield. The company has also raised its annual distribution for two consecutive years, and its two hikes in the last 15 months have it on pace for 2017 to mark the third consecutive year with an increase, which makes it both a high-yield and distribution-growth play.
First National Financial Corp.
First National Financial Corp. (TSX: FN) is the parent company of First National Financial LP, which is Canada’s largest non-bank originator and underwriter of mortgages with $99.5 billion in mortgages under administration. It’s also one of the top three in market share in the mortgage broker distribution channel.
First National pays a monthly dividend of $0.154167 per share, representing $1.85 per share annually, which gives it a 7.5% yield. The company has also raised its annual dividend payment for five consecutive years, and its 8.8% hike in February has it on pace for 2017 to mark the sixth consecutive year with an increase, making it both a high-yield and dividend-growth play, like A and W.
Which of these income stocks belongs in your portfolio?
I think Vermilion Energy, A and W, and First National Financial would make great additions to any income portfolio, so take a closer look at each and consider adding at least one of them to yours today.
