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3 Top Dividend Stocks Yielding Over 4.5%

If you’re searching for high-quality dividend stocks that pay better-than-average yields, then I’ve got three that I think you will love. Let’s take a closer look at each, so you can determine if you should buy one or more of them today.

Norbord Inc. (TSX:OSB)(NYSE:OSB)

Norbord is one of the world’s leading producers of wood-based panels with 17 plants in the United States, Canada, and Europe. It currently pays a quarterly dividend of $0.60 per share, representing $2.40 per share annually, which gives it a yield of about 5.4% at the time of this writing.

In addition to offering a yield over 5%, Norbord has recently begun showing a dedication to growing its dividend; it raised its dividend three times in 2017, which puts it on track for 2018 to mark the second straight year in which it has raised its annual dividend payment.

Norbord also has a variable dividend policy that targets payouts of dividends based on certain criteria, including its operational results and its cash flow, so I think its strong performance, including its 92.6% year-over-year increase in operating cash flow to US$7.05 per share in 2017, will allow it to continue to grow its dividend in 2019 and beyond.

CI Financial Corp. (TSX:CIX)

CI Financial is one of Canada’s leading wealth management and investment fund companies with approximately $143.03 billion in assets under management as of December 31, 2017. It currently pays a monthly dividend of $0.1175 per share, representing $1.41 per share annually, which gives it a yield of about 4.9% at the time of this writing.

Like Norbord, CI Financial has shown a dedication to growing its dividend, but its track record is much more impressive; it has raised its annual dividend payment in each of the last eight years, and its 2.2% hike in May 2017 has it positioned for 2018 to mark the ninth straight year with an increase.

I also think the financial giant’s very strong financial performance, including its 17.3% year-over-year increase in free cash flow to $180.6 million in 2017, and its growing portfolio of assets under management that will help fuel future growth, including its 21.3% year-over-year increase to $143.03 billion in 2017, will allow its streak of annual dividend increases to continue for many years to come.

Canadian Utilities Ltd. (TSX:CU)

Canadian Utilities is a diversified global corporation with approximately $21 billion in assets and operations in the structures and logistics, electricity, pipelines and liquids, and retail energy industries. It currently pays a quarterly dividend of $0.3933 per share, representing $1.57 per share annually, which gives its stock a 4.7% yield at the time of this writing.

Not only does Canadian Utilities have a high yield, but it also has the longest active streak of annual dividend increases for a public entity in Canada; it has raised its dividend for an incredible 45 consecutive years, and its 10% hike in January has it on pace for 2018 to mark the 46th consecutive year with an increase.

I also think the company’s ongoing investment activity, including the $4.4 billion in Regulated Utility and contracted capital growth projects it has planned for 2018-2020, which are expected to “contribute significant earnings and cash flow, and create long-term value for share owners,” will allow its streak of annual dividend increases to continue for the foreseeable future.

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

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