During periods of volatility I believe it should be a principal goal for investors to generate growing cash flow in their portfolios. By investing in dividend stocks, investors can rely on income in times of slowdown.
With the S&P/TSX Index still in a summer swoon, let’s take a look at some dividend stocks yielding 5% or more that can provide income to your portfolios.
BCE Inc.
The stock price of BCE Inc. (TSX: BCE)(NYSE: BCE) has fallen 2.3% since late May. The company released its second quarter earnings on August 3. It posted revenue of $5.7 billion representing an increase of 6.7%. Profit fell as operating expenses and investments into wireless weighed on net earnings, which were down 2.3% to $811 million in the second quarter. Adjusted EBITDA increased 5% as the company saw growth across all segments, but was also tempered by regulations in wireless and wireline and expenses related to investments in those divisions.
BCE Inc. boasts a 4.85% dividend yield at $0.72 as of the last offering. Demand for wireless is booming in North America and BCE will be a major beneficiary of this trend in the long term.
Boardwalk REIT
Boardwalk REIT (TSX: BEI.UN) is a Calgary-based real estate investment trust that owns boardwalk communities, Structures Metropolitaines, and Boardwalk Retirement Community. The company released its second quarter results on August 10. It posted weaker-than-expected earnings as Alberta still struggles to recover from the economic downturn caused by the sharp drop in oil prices. The results showed a 29% decrease in reported funds from operations per diluted unit compared to Q2 2016. Shares have fallen 15% since the earnings beat and the company has committed to a dramatic renovation project that will weigh on profits in the next few quarters.
The company boasts a 5.5% dividend yield at $0.19 per share as of offering, but there is some concern that it will not be capable of holding this for much longer. If you are looking purely for income and are willing to bet on an Alberta comeback you can justify a gamble here.
Power Financial Corp
Power Financial Corp (TSX:PWF) is a Canadian diversified management and holding company with significant interest in the Canadian financial services sector. The company announced its second quarter results on August 4. It posted net earnings at $545 million or $0.76 per share, representing an 8% increase from the second quarter of 2016. The stock has been relatively static in 2017, seeing growth of 0.66%. However, the share price has bucked the trend of the Canadian market and increased 4.4% in a 3 month period dating back to late May.
Power Financial boasts a 4.8% dividend yield, recently reported at $0.41 per share. It saw earnings growth in its 2 major North American financial services companies Great-West Lifeco Inc. and IGM Financial Inc. Power Financial stock is showing generally weak trends but the share price has been stable and its attractive dividend makes it a worthy add to portfolios seeking income.
