If you’re interested in building an income-based portfolio or are simply interested in buying one income stock, then you’ve come to the right place. Let’s take a closer look at four great income stocks with yields of 5-8% that you could buy right now.
Vermilion Energy Inc. (TSX: VET)(NYSE: VET)
Vermilion is one of the world’s largest exploration and production companies, and it’s France’s largest oil producer.
It currently pays a monthly dividend of $0.215 per share, equating to $2.58 per share on an annualized basis, which gives it a 6% yield. The company has paid monthly dividends uninterrupted and without reduction since September 2003, including three hikes in that span, and I think its very strong generation of fund flows from operations will allow it to continue to maintain its current monthly rate for decades.
Extendicare Inc. (TSX: EXE)
Extendicare is one of Canada’s leading providers of care and services for seniors through its network of 115 operated senior care and living centres, 66 of which it owns and 49 of which it manages, as well as its home healthcare options.
Extendicare pays a monthly dividend of $0.04 per share, representing $0.48 per share annually, which gives it a 5.25% yield. It’s important to note that the senior care provider has paid monthly dividends to its shareholders since January 2007, and it has maintained its currently monthly rate since May 2013. I think its ample generation of funds from operations and the growing demand for its services will allow it to continue to maintain its current monthly rate for many years to come.
Summit Industrial Income REIT (TSX: SMU.UN)
Summit is one of Canada’s largest owners and managers of industrial real estate with a portfolio of 69 income-producing properties located across five provinces that total approximately 7.7 million square feet.
Summit currently pays a monthly distribution of $0.043 per unit, representing $0.516 per share annually, which gives it a 7.2% yield. Foolish investors must note that the REIT’s 2.4% distribution hike in May has it on track for 2018 to mark the second consecutive year in which it has raised its annual distribution, and I think its very strong financial performance and its growing property portfolio could allow this streak to continue in 2019 and beyond.
Pizza Pizza Royalty Corp. (TSX: PZA)
Pizza Pizza owns certain trademarks and trade names associated with the Pizza Pizza and Pizza 73 restaurants brands in Canada. It licenses these properties for use in operating and franchising restaurants in return for a royalty of 6% of sales at Pizza Pizza restaurants and 9% of sales at Pizza 73 restaurants, and as of September 30, there were 751 restaurants in its royalty pool.
Pizza Pizza currently pays a monthly dividend of $0.0713 per share, representing $0.856 per share annually, giving it a 5.3% yield. It’s important for Foolish investors to note that 2017 marks the sixth consecutive year in which the pizza giant has raised its annual dividend payment, making it one of my favourite income stocks in the restaurant industry today.
