Investors choose dividend stocks to take advantage of the steady income that these investments provide along with the opportunity to reinvest dividends for even greater growth opportunities. The best companies have consistent payouts and raise dividends over time. As we enter a period of rising interest rates, it is advantageous for investors to be provided income as they pursue growth.
Veresen Inc.
Veresen Inc. (TSX:VSN) is a Calgary-based energy infrastructure company that specializes in pipelines, natural gas, and power generation. The company released its second-quarter results on August 2. It generated distributable cash of $100 million, or $0.32 per common share, compared to $94 million, or $0.30 per share, in the second quarter of 2016. The company also saw net income of $24 million, or $0.08 per share. The stock has increased 33% in 2017 and 38% year over year. Veresen was hit hard by the oil collapse and hit single digits in the beginning of 2016 but has since provided impressive growth.
It boasts a dividend of $0.08 per share with a 5.73% dividend yield.
Cominar REIT
Cominar REIT (TSX:CUF.UN) is a diversified real estate investment trust and the largest commercial property owner and manager in Quebec. The company released its second-quarter earnings on August 3. It reduced its monthly dividend distribution to $0.09 per share from $0.12. This still represents a. 8.47% dividend yield. The distribution was reduced to give the company more flexibility in light of weakening payout ratio. Revenues were down to $210 million compared to $217 million in Q2 2016. Net income was also down to $65.8 million from $69.8 million in the second quarter of 2016.
The company is in the midst of reorientation, but the Quebec real estate market is picking up in 2017, and the stock still offers a highly attractive dividend.
Power Corporation of Canada
Power Corporation of Canada (TSX: POW) is a Montreal-based, diversified, international management holding company with interests in companies in the financial services sector in Canada. Power Corporation reported its second-quarter results for 2017 on August 4. It posted net earnings of $350 million, or $0.75 per share, compared to $272 million, or $0.56 per share, in Q2 2016. The company announced a dividend of 0.36 per share, representing a yield of 4.65%. The stock has increased 2.7% in 2017 and 13% year over year. It is perhaps the riskiest play of the field listed here because of the threat of an economic pullback in Canada.
Student Transportation Inc.
Student Transportation Inc. (TSX:STB)(NASDAQ:STB) is a New Jersey-based school bus contractor operating in rural and suburban areas. The company released its fiscal third-quarter results for 2017 on May 10. Revenue was up 7% to $185.2 million and net income was reported at $7.9 million, or $0.08 per common share. The board of directors approved the 153rd consecutive monthly dividend of $0.05 per share, representing a dividend yield of 8.13%. The stock has fallen 1.3% in 2017 as of August 24. The company made an acquisition in Maryland which will add 125 revenue vehicles to its fleet.
