3 Stocks Yielding up to 9.6% to Buy and Hold

Are you searching for a high-yielding stock? If so, Crombie Real Estate Investment Trust (TSX:CRR.UN), Power Corporation of Canada (TSX:POW), and Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) should be on your watch list.

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Dividend stocks should be core holdings in every investor’s portfolio, because, as history shows, they outperform their non-dividend-paying counterparts over the long term. With this in mind, let’s take a look at three high-quality stocks with yields up to 9.6% that you could buy right now.

Crombie Real Estate Investment Trust (TSX:CRR.UN)

Crombie REIT is one of Canada’s largest owners and managers of retail real estate with a portfolio of 284 income-producing properties located across the country that total approximately 19 million square feet.

Crombie pays a monthly distribution of $0.07417 per unit, equating to $0.89 per unit annually, which gives it a yield of about 7.1% at the time of this writing. The real estate giant has paid monthly distributions uninterrupted and without reduction since April 2006, including one hike of 4.8% back in May 2008, which makes it one of the most reliable income providers in its industry.

I think Crombie’s very strong cash-flow-generating ability, including its 7.2% increase in adjusted cash flow from operations (ACFO) to $151.88 million in 2017, and its improved payout ratio, including 87.7% of its ACFO in 2017 compared with 88.7% in 2016, will allow it to continue to provide its unitholders with a reliable income stream going forward.

Power Corporation of Canada (TSX:POW)

Power Corporation is a diversified international management and holding company with ownership interests in companies in several industries, including financial services, renewable energy, and communications.

Power Corporation currently pays a quarterly dividend of $0.3585 per share, representing $1.434 per share annually, which gives it a yield of about 4.8% at the time of this writing. It has raised its annual dividend payment each of the last three years, and its 7% hike in May 2017 has it on track for 2018 to mark the fourth straight year with an increase.

I think Power Corporation’s very strong financial performance in 2017, including its 27.3% increase in adjusted net earnings to $3.36 per share, will allow it to announce another dividend hike when it reports its fiscal 2018 first-quarter earnings results next month, and I think it will continue to deliver dividend growth to its shareholders for many years to come.

Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI)

Pattern Energy is one of the world’s largest independent power producers. It has a portfolio of 25 wind and solar power facilities, including one it has agreed to acquire, with a total owned interest of 2,942 megawatts in the United States, Canada, Japan, and Chile.

Pattern Energy pays a quarterly dividend of US$0.422 per share, representing US$1.69 per share on an annualized basis, which gives its NASDAQ-listed shares a yield of about 9.6% at the time of this writing. It has raised its annual dividend payment each of the last four years, and its recent hikes, including its 0.5% hike in November 2017, have it on pace for 2018 to mark the fifth straight year with an increase.

It’s important to note that Pattern Energy has a dividend-payout target of 80% of its cash available for distribution (CAFD), so I think its consistently strong CAFD growth, including its 9.6% increase to US$145.8 million in 2017 and its projected 3-24% increase in 2018, will allow it to continue to grow its dividend in 2019 and beyond.

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.

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