Dividend stocks are the foundation of great portfolios, so let’s take a closer look at three with high and safe yields of 5-7% that you could buy right now.
Boston Pizza Royalties Income Fund
Boston Pizza Royalties Income Fund (TSX: BPF.UN), or “The Fund” for short, indirectly owns certain trademarks associated with the Boston Pizza brand in Canada, and it licenses these properties to Boston Pizza International for use in operating and franchising restaurants in exchange for a royalty of 5.5% of sales at the restaurants in its royalty pool. As of September 30, there were 383 restaurants in its royalty pool.
The Fund currently pays a monthly distribution of $0.115 per unit, equating to $1.38 per unit on an annualized basis, which gives it a 6.2% yield at the time of this writing.
Foolish investors should note that The Fund’s 6.2% distribution hike in February 2016 has it on track for 2017 to mark the sixth consecutive year in which it has raised its annual distribution, and I think its steady growth of distributable cash, including its 0.2% year-over-year increase to $1.049 per unit in the first nine months of 2017, will allow it to continue this streak in 2018 and beyond by making small hikes each year.
Fiera Capital Corp.
Fiera Capital Corp. (TSX: FSZ) is the third-largest independent publicly traded asset management manager in Canada. As of September 30, it had over $123 billion in assets under management.
Fiera currently pays a quarterly dividend of $0.18 per share, equating to $0.72 per share annually, and this gives it a 5.5% yield at the time of this writing.
It’s important to note that the asset manager’s 5.9% dividend hike in August has it on track for 2018 to mark the eighth consecutive year in which it has raised its annual dividend payment, and I think its very strong financial performance, including its 7.9% year-over-year increase in adjusted net earnings to $0.82 per share in the first nine months of 2017, will allow it to continue to deliver dividend growth to its shareholders in the years ahead.
Enbridge Inc.
Enbridge Inc. (TSX: ENB)(NYSE: ENB) is North America’s largest owner and operator of energy infrastructure. Its portfolio of assets includes pipelines, natural gas processing plants, crude oil and natural gas storage terminals, and power generation facilities, which are located across Canada and the United States.
Enbridge currently pays a quarterly dividend of $0.61 per share, equating to $2.44 per share on an annualized basis, which gives its stock a yield of about 5.6% at the time of this writing.
Foolish investors must note that the energy infrastructure giant’s 4.6% dividend hike in May has it on track for 2018 to mark the 23rd consecutive year in which it has raised its annual dividend payment, and that it has a dividend-growth program in place that calls for annual growth of 10-12% through 2024, which makes it one of the energy sector’s best dividend stocks, in my opinion.
