If you’re on the prowl for a high-yielding small cap to buy and hold for decades, then you’ve come to the right place. I’ve scoured the market and found three excellent opportunities, so let’s take a closer look at each to determine which would be the best fit for your portfolio.
Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is one of Canada’s largest renewable energy companies. As of June 30, it had ownership interests in 51 facilities, including 31 hydroelectric facilities, 19 wind farms, and one solar farm, which are located in Quebec, Ontario, and British Columbia, Canada, France, and Idaho, U.S.
Innergex pays a quarterly dividend of $0.165 per share, equal to $0.66 per share annually, giving it a yield of about 4.5%. It’s also very important for investors to note that the company has raised its annual dividend payment for three consecutive years, and its 3.1% hike in February has it on pace for 2017 to mark the fourth consecutive year with an increase.
Acadian Timber Corp.
Acadian Timber Corp. (TSX: ADN) is one of the leading suppliers of primary forest products, such as softwood and hardwood sawlogs, pulpwood, and biomass by-products, in eastern Canada and the northeastern United States. It’s also the second-largest timberland operator in New Brunswick and Maine with a total of 2.4 million acres of land under management.
Acadian pays a quarterly dividend of $0.275 per share, equal to $1.10 per share annually, which gives it a 5.9% yield. Investors must also note that the company has raised its annual dividend payment each of the last two years, and its 10% hike in February has it on track for 2017 to mark the third consecutive year with an increase.
CT Real Estate Investment Trust
CT Real Estate Investment Trust (TSX: CRT.UN) is one of Canada’s largest owners and managers of retail properties. As of June 30, its portfolio consisted of 303 retail properties, four distribution centres, one mixed-use commercial property, and three properties under development which total approximately 25.1 million square feet of gross leasable area.
CT pays a monthly distribution of $0.05833 per unit, equal to $0.70 per unit annually, and this gives it a 4.9% yield. It’s also very important to note that CT has raised its annual distribution for three straight years, and its 2.9% hike that took effect in January has it positioned for 2017 to mark the fourth straight year with an increase.
Which of these small caps belongs on your buy list?
I think Innergex Renewable Energy, Acadian Timber, and CT REIT are three of the best high-yielding small caps in their respective industries, so take a closer look at each and consider investing in one of them today.
