Buying and holding high-quality dividend stocks while reinvesting all dividends received is one of the most powerful and time-proven strategies to build wealth over the long term. Let’s take a closer look at three stocks with yields up to 3.9% that you could buy right now.
Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is Canada’s largest wireless provider and one of its largest diversified communications and media companies.
Rogers pays a quarterly dividend of $0.48 per share, equating to $1.92 per share on an annualized basis, which gives it a 2.85% yield at the time of this writing.
It’s worth noting that Rogers has raised its annual dividend payment 11 times in the last 13 years, including a streak of 11 consecutive years from 2005 to 2015, and I think its strong growth of free cash flow, including its 14.4% increase to $1.5 billion in the first nine months of 2017 and its projected 2-4% increase in the full year of 2017, could allow it to announce another slight hike in 2018.
Inter Pipeline Ltd. (TSX:IPL) is one of the world’s largest owners and operators of energy infrastructure. Its operating assets include pipelines, offgas extraction facilities, and fractionation plants in western Canada, and petroleum and petrochemical storage terminals in the United Kingdom, Denmark, Sweden, Ireland, and Germany.
Inter Pipeline currently pays a monthly dividend of $0.135 per share, equating to $1.62 per share on an annualized basis, giving it a yield of about 6.25% at the time of this writing.
Foolish investors must note that Inter Pipeline has raised its annual dividend payment in each of the last eight years, and that its 3.8% hike in November 2016 has it on track for 2017 to mark the ninth consecutive year with an increase. I think that the energy infrastructure company’s very strong financial performance, including its 25.1% increase in funds from operations, attributable to common shareholders, to $453.9 million in the first half of 2017, will allow its streak of annual dividend increases to continue in 2018 and beyond, making it my favourite dividend stock in the energy sector today.
Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is Canada’s third-largest bank by assets with about $906.33 billion in total as of July 31.
Bank of Nova Scotia currently pays a quarterly dividend of $0.79 per share, equating to $3.16 per share on an annualized basis, and this gives it a yield of about 3.9% at the time of this writing.
It’s important for Foolish investors to note that Bank of Nova Scotia has raised its annual dividend payment for six straight years, and that its recent hikes, including its 2.7% hike in February and its 3.9% hike in August, have it on track for 2017 to mark the seventh straight year with an increase. The banking giant also has a target dividend-payout range of 40-50% of its adjusted net income, attributable to common shareholders, so I think its continually strong growth, including its 9.2% increase to $5.99 billion in the first nine months of fiscal 2017, will allow its streak of annual dividend increases to continue for the foreseeable future.
