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

edit Sale sign, value, discount
Dividend Stocks

3 Top TSX Dividend Stocks on Sale in June 2023

These top TSX dividend stocks are on sale.

Read more »

Path to retirement
Dividend Stocks

TFSA Investment Strategies: Top Canadian Companies to Add to Your Portfolio

A TFSA stock portfolio can be totally tax-free and more stable if holdings are limited to top Canadian companies.

Read more »

a person prepares to fight by taping their knuckles
Dividend Stocks

Quebecor Could Totally Disrupt the Big 3 Canadian Telecom Stocks

Quebecor stock can put up a fight against the Big Three Canadian telecoms, but not in the way you'd think!

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

These 3 Canadian Dividend Stocks Are Great Choices for Retirement Income

There’s no shortage of great Canadian dividend to establish a retirement income. Here’s a shortlist of investments to buy today.

Read more »

Female friends enjoying their dessert together at a mall
Dividend Stocks

How I’d Invest $300 a Month to Target a $3,000 Yearly Passive Income

Stocks can be a good source of passive income. All you need is to regularly invest in dividend stocks and…

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

These 2 Canadian Dividend Stocks Are a Retiree’s Best Friend

These large-cap Canadian dividend stocks can supplement your income post-retirement.

Read more »

edit Balloon shaped as a heart
Dividend Stocks

4 Top Stocks With High Dividend Growth to Buy in 2023 and Hold Forever

Are you looking for stocks you can buy and forget, while they keep giving you returns? Then these high dividend…

Read more »

money while you sleep
Dividend Stocks

2 “SWAN” Dividend Stocks for Passive Income (AKA “Sleep Well at Night” Stocks)

These SWAN dividend stocks are good buys today for passive income. They would be even better buys on further selloffs,…

Read more »