If you’re new to investing and are looking to build a dividend-based portfolio, then you’ve come to the right place. I’ve scoured the market and selected three great dividend stocks with yields up to 6.55%, so let’s take a closer look at each to determine if you should invest in one or all of them today.
Crombie Real Estate Investment Trust
Crombie Real Estate Investment Trust (TSX: CRR.UN) is one of Canada’s largest owners and managers of retail properties. As of June 30, its portfolio consisted of 281 income-producing properties located across the country that total approximately 19.12 million square feet of gross leasable area.
Crombie pays a monthly distribution of $0.07417 per unit, equating to $0.89 per unit on an annualized basis, and this gives it a yield of about 6.55% at the time of this writing.
It’s important for Foolish investors to note that Crombie has paid monthly distributions uninterrupted and without reduction since April 2006, and that it has maintained its current monthly rate since May 2008. I think that the REIT’s strong financial performance, including its 16.4% year-over-year increase in adjusted cash flows from operations to $74.41 million in the first half of 2017, will allow it to continue to maintain its current monthly rate for the foreseeable future, making it one of my top picks for monthly income today.
National Bank of Canada
National Bank of Canada (TSX: NA) is the sixth-largest bank in Canada as measured by assets with approximately $240.07 billion in total as of July 31. It offers a wide range of financial products and services to clients in Canada, the U.S., and around the world.
National Bank currently pays a quarterly dividend of $0.58 per share, equating to $2.32 per share on an annualized basis, giving its stock a yield of about 3.8% at the time of this writing.
Investors must note that National Bank has raised its annual dividend payment each of the last six years, and that its recent hikes, including its 3.6% hike in May, have it on track for 2017 to mark the seventh consecutive year with an increase. The bank also has a target dividend-payout range of 40-50% of its adjusted net earnings, so I think its very strong growth, including its 30.2% year-over-year increase to $4.05 per share in the first nine months of fiscal 2017, will allow this streak to easily continue into the 2020s.
Fortis Inc.
Fortis Inc. (TSX: FTS)(NYSE: FTS) is one of the 15 largest investor-owned utility companies in North America, serving millions of customers in five Canadian provinces, nine U.S. states, and three Caribbean countries. Its subsidiaries include ITC, UNS Energy, Newfoundland Power, FortisOntario, Maritime Electric, and Central Hudson Gas & Electric.
Fortis currently pays a quarterly dividend of $0.40 per share, equating to $1.60 per share annually, which gives it a yield of about 3.5% at the time of this writing.
It’s very important to note that Fortis has raised its annual dividend payment for 43 consecutive years, and that its 6.7% hike in September 2016 has it on track for 2017 to mark the 44th consecutive year with an increase. The utility company also has a dividend-growth program in place that targets annual growth of approximately 6% through 2021, and I think its consistently strong financial performance, including its 15.9% year-over-year increase in adjusted net earnings to $1.31 per share in the first half of 2017, will allow it to complete this program and announce a new one that extends into the late 2020s or early 2030s.
