MENU

The Instant 3-Stock Portfolio for Income Investors

If you’re interested in building an income-based portfolio, then you’ve come to the right place. Let’s take a closer look at three income stocks with high and safe yields of 4-8% 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 seed, fertilizer, grain, feed, and food handling, blending, storage, and conditioning equipment. It has manufacturing facilities in Canada, the United States, Brazil, South Africa, and Chile, and it distributes its products globally.

AGI pays a monthly dividend of $0.20 per share, equating to $2.40 per share annually, which gives its stock a yield of about 4.7% at the time of this writing.

Foolish investors should also note that AGI has paid monthly dividends uninterrupted and without reduction since it went public in May 2004, and I think its very strong financial performance, including its 41.1% year-over-year increase in funds from operations to $69.85 million in the first nine months of 2017, will allow it to continue to do so for the foreseeable future.

SIR Royalty Income Fund

SIR Royalty Income Fund (TSX:SRV.UN), or “The Fund” for short, owns certain trademarks of SIR Corp.’s family of restaurant brands, including Jack Astor’s Bar & Grill, Alice Fazooli’s, and Reds Wine Tavern, and it licences these properties to SIR Corp. in exchange for a royalty of 6% of sales at the 57 restaurants in its royalty pool.

The Fund pays a monthly distribution of $0.095 per unit, equating to $1.14 per unit annually, which gives it a yield of about 7.6% at the time of this writing.

Investors must note that The Fund has maintained its current monthly distribution rate since June 2013, and I think its very strong generation of distributable cash, including its 3.4% year-over-year increase to $0.90 per unit in the first nine months of 2017, will allow it to continue to do so for many years to come.

Pembina Pipeline Corp.

Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA) is one of North America’s largest owners and operators of energy infrastructure, including conventional pipelines, oil sands and heavy oil pipelines, natural gas pipelines, natural gas processing plants, fractionators, and midstream storage facilities.

Pembina currently pays a monthly dividend of $0.18 per share, equating to $2.16 per share on an annualized basis, which gives it a 4.8% yield at the time of this writing.

Foolish investors must also note that Pembina has raised its annual dividend payment for six consecutive years, and that its 5.9% dividend hike last month has it on track for 2018 to mark the seventh consecutive year with an increase, making it both a high-yield and dividend-growth play today.

3,985 stocks listed between the TSX & TSXV, but here are the 5 we’d buy right now!

Overwhelmed by how many public companies there are to choose from in Canada? Motley Fool Canada Director of Research Iain Butler has you covered. Once a month, Iain and the rest of our team at Stock Advisor Canada reveal their five favourite Canadian stocks for new money now.

Considering they’ve walloped a “stuck in the mud” TSX by 10% over the past 4 years with truly life-changing winners like Shopify (up 236%, more than tripling your money), you’ll probably want to have your front-row seat reserved when our next five “Best Buys Now” are released – exclusively on behalf of Stock Advisor Canada members.

To make sure your name is on the list, just click here now... before the curtain is lifted without you.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.