Dividend stocks are the foundation of great portfolios, because as history has shown, they far outperform their non-dividend-paying counterparts over the long term. With this in mind, let’s take a closer look at three with yields of 4-6% that you could buy right now and hold for decades.
Valener Inc. (TSX:VNR) is a publicly traded entity whose main assets consists of a 29% ownership interest in Énergir, formerly known as Gaz Métro, and a 24.5% ownership interest in Seigneurie de Beaupré Wind Farms. Énergir is the largest natural gas distributor in Québec and the sole natural gas distributor, and it’s the largest electricity distributor in Vermont. Seigneurie de Beaupré Wind Farms is one of Canada’s largest wind power facilities.
Valener currently pays a quarterly dividend of $0.29 per share, equating to $1.16 per share annually, which gives it a yield of about 5% today.
It’s very important for investors to make two notes.
First, Valener has raised its annual dividend payment for three consecutive years, and its 3.6% hike in August has it on track for fiscal 2018 to mark the fourth consecutive year with an increase.
Second, it has a 4% annualized dividend-growth target through fiscal 2022, and I think its strong operational performance, including its 5.4% year-over-year increase in adjusted net earnings to $1.37 per share in fiscal 2017, will allow it to complete this program and announce a new one that extends into the late 2020s.
Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) is a diversified global real estate company. It owns and manages a portfolio of office, retail, multifamily, industrial, hospitality, triple net lease, and self-storage assets around the world.
Brookfield currently pays a quarterly distribution of US$0.295 per unit, representing US$1.18 per unit on an annualized basis, which gives its stock a yield of about 5.35% today.
Foolish investors should make two important notes.
First, 2017 marks the third straight year in which the real estate titan has raised its annual distribution.
Second, the company has a long-term distribution-growth target of 5-8% annually, and I think its continued growth of funds from operations (FFO), including its 6.1% year-over-year increase to US$1.04 per share in the first nine months of 2017, will allow it to achieve this growth target for many years to come.
Telus currently pays a quarterly dividend of $0.505 per share, representing $2.02 per share annually, which gives its stock a yield of about 4.2% today.
Investors must also make two important notes.
First, the telecom giant has raised its annual dividend payment for 14 consecutive years, and its recent hikes, including its 2.5% hike last month, have it on track for 2018 to mark the 15th consecutive year with an increase.
Second, it has a dividend-growth program in place that calls for annual growth of 7-10% through 2019, and I think its consistently strong financial performance, including its 6% year-over-year increase in adjusted net earnings to $2.47 per share in its 12-month period ended on September 30, and the ongoing growth of its subscriber base, including its 2.9% year-over-year increase to 12.942 million in the first nine months of 2017, will allow it to extend this program into the late 2020s.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Joseph Solitro has no position in any stocks mentioned.