3 Stocks Yielding 3-6% to Buy in April

Ready to buy a dividend stock? If so, Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI), Valener Inc. (TSX:VNR), and North West Company Inc. (TSX:NWC) are great options.

| More on:

If you’re a dividend investor with cash on hand that you’re ready to put to work, then I’ve got three stocks that should be on your radar. Let’s take a closer look at each, so you can determine if you should invest in one of them today.

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI)

Rogers Communications is Canada’s largest provider of wireless communications services, and it’s one of the country’s leading providers of cable television, high-speed internet, information technology, and telephony services to individuals and businesses.

Rogers pays a quarterly dividend of $0.48 per share, representing $1.92 per share on an annualized basis, which gives it a yield of about 3.2% at the time of this writing. The company has raised its dividend 11 times in the last 13 years, including a streak of 11 straight years from 2005 to 2015.

Rogers’s streak of annual dividend increases may have ended in 2015, but I think its strong growth of free cash flow (FCF), including its 2.4% growth to $1.75 billion in 2017 and its projected 3-5% growth in 2018, and its conservative dividend-payout ratio, including just 56.6% of its FCF in 2017, could allow it to start a new streak in the very near future.

Valener Inc. (TSX:VNR)

Valener is a public company that serves as an investment vehicle for Énergir, L.P. and Seigneurie de Beaupré Wind Farms. Énergir is the largest natural gas distributor in Québec and the sole natural gas distributor and the largest electricity distributor in Vermont, and 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, representing $1.16 per share on an annualized basis, which gives it a yield of about 5.6% at the time of this writing. The company has raised its annual dividend payment each of its last three fiscal years, and its 3.6% hike in August has it positioned for fiscal 2018 to mark the fourth straight year with an increase.

Foolish investors must also note that Valener has a target dividend-growth rate of 4% annually through fiscal 2022, and it has stated that this growth will be supported by Énergir’s “solid financial performance,” as well as increased distributions from the Seigneurie de Beaupré wind farms.

North West Company Inc. (TSX:NWC)

North West, through its subsidiaries, is one of the leading retailers of food and everyday products and services to rural communities and urban neighbourhood markets in Canada, Alaska, the South Pacific, and the Caribbean. It currently operates 239 stores under its many banners, which include Northern, Cost-U-Less, Giant Tiger, and RiteWay Food Markets.

North West currently pays a quarterly dividend of $0.32 per share, equating to $1.28 per share annually, which gives it a yield of about 4.7% at the time of this writing.

It’s important to note that fiscal 2017 marked the sixth consecutive year in which North West has raised its annual dividend payment, and I think its strong financial performance, including its 6.3% increase in net earnings to an adjusted $84.6 million and its 12.2% increase in operating cash flow to $141.42 million in 2017, will allow it to extend its streak by announcing a hike in its fiscal 2018 first-quarter earnings release in June.

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 of the stocks mentioned.

More on Dividend Stocks

A worker gives a business presentation.
Dividend Stocks

TSX Communications in April 2024: The Best Stocks to Buy Right Now

Here are two of the best TSX communication stocks you can buy in April 2024 and hold for years to…

Read more »

Man considering whether to sell or buy
Dividend Stocks

Royal Bank of Canada Stock: Buy, Sell, or Hold?

Royal Bank of Canada (TSX:RY) has a high dividend yield. Should you buy it?

Read more »

Businessman looking at a red arrow crashing through the floor
Dividend Stocks

BCE’s Stock Price Has Fallen to its 10-Year Low of $44: How Low Can it Go?

BCE stock price has dipped 39% in two years and shows no signs of growth in the next few months.…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

Invest $10,000 in This Dividend Stock for $3,974.80 in Passive Income

This dividend stock gives you far more passive income than just from dividends alone, so consider it if you want…

Read more »

Payday ringed on a calendar
Dividend Stocks

This 6% Dividend Stock Pays Cash Every Month

Can a 6% dividend yield help you build a monthly retirement income? An investment made right can help you build…

Read more »

Payday ringed on a calendar
Dividend Stocks

Passive Income: How Much Should You Invest to Earn $1,000 Every Month?

These three monthly-paying dividend stocks can help you earn a monthly passive income of $1,000.

Read more »

Dividend Stocks

3 Dividend Stocks to Double Up on Right Now

Some of these dividend stocks will take longer to recover than others, but they'll certainly pay you to stick around.

Read more »

TFSA and coins
Dividend Stocks

TFSA Passive Income: How Much to Invest to Earn $250/Month

Want to earn $250/month of tax-free passive income? Here are four Canadian dividend stocks to look at buying in your…

Read more »