As savvy income investors, we’re always on the lookout for quality stocks that can boost our portfolios’ returns. With this in mind, let’s take a closer look at two with yields of 4-7% that you could buy right now.
Ag Growth International Inc.
Ag Growth International Inc. (TSX:AFN), or AGI for short, is one of the world’s leading manufacturers of grain, feed, and fertilizer handling, storage, and conditioning equipment. Its family of brands includes Batco, Wheatheart, STORM, Brownie, Twister, and Grain Guard.
AGI pays a monthly dividend of $0.20 per share, equal to $2.40 per share annually, and this gives it a yield of about 4.2% at the time of this writing.
In addition to being a bonafide high yielder, AGI is a very reliable dividend stock. It has paid monthly distributions uninterrupted and without reduction since its IPO in May 2004, and it has maintained its current dividend rate since November 2010.
I think AGI will continue to be one of the most reliable dividend stocks in the market going forward as well. I think its very strong financial performance, including its 45.5% year-over-year increase in funds from operations to $38.84 million in the first half of 2017, and its wildly improved dividend-payout ratio, including 48.9% in the first half of 2017 compared with 65.9% in the first half of 2016, will allow it to continue to maintain its current annual distribution rate for decades.
Enbridge Income Fund Holdings Inc.
Enbridge Income Fund Holdings Inc. (TSX:ENF), through its investment in Enbridge Income Fund, indirectly owns high-quality, low-risk energy infrastructure assets, including oil and natural gas pipelines, oil storage facilities, and green-power-generation facilities. These assets are operated by Enbridge Inc. and generate stable and predictable cash flows that are passed along to investors.
ENF currently pays a monthly dividend of $0.1711 per share, equal to $2.0532 per share annually, which gives it a 6.5% yield at the time of this writing.
On top of having a very high yield, ENF is a dividend-growth star. It has raised its annual dividend payment for six straight years, and its 10% hike in January has it positioned for 2017 to mark the seventh straight year with an increase.
ENF is a top pick for dividend growth in the years ahead as well. It has a dividend-growth program in place which calls for annual growth of 10% through 2019, and I think its consistently strong earnings growth, including its 21% year-over-year increase to $144 million in the first half of 2017, will allow it to complete this program and announce a new one that extends into the late 2020s.
Which of these high yielders belongs in your portfolio?
I think Ag Growth International and Enbridge Income Fund Holdings would make great additions to any income portfolio, so take a closer look at each and strongly consider adding at least one of them to yours today.
