3 Under-the-Radar Dividend Stocks Yielding 4-7%

Want to boost your portfolio’s yield? If so, consider investing in Rogers Sugar Inc. (TSX:RSI), Domtar Corp. (TSX:UFS)(NYSE:UFS), or Fiera Capital Corp. (TSX:FSZ) today.

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As Foolish investors know, dividend investing is one of the most effective ways to build wealth over the long term. With this in mind, let’s take a closer look at three dividend stocks with yields of 4-7% that are often overlooked by investors, but that represent attractive opportunities today.

Rogers Sugar Inc. (TSX:RSI)

Rogers Sugar is one of Canada’s leading producers of sugar and maple products. Its family of brands includes Rogers, Lantic, Highland Sugarworks, Decacer, and Great Northern.

Rogers pays a quarterly dividend of $0.09 per share, equating to $0.36 per share annually, which gives it a yield of about 5.9% at the time of this writing. The sugar and maple products giant has paid quarterly dividends uninterrupted and without reduction since it converted from an income fund to a conventional corporation in January 2011, including one hike of 5.9% in 2012, which means it’s a very reliable dividend payer.

I think Rogers’s consistently strong growth of free cash flow (FCF), including its 18.3% increase to $17.36 million in the first quarter of 2018, and its conservative dividend-payout ratio, including just 54.8% of its FCF in the first quarter of 2018, will allow it to continue to provide its shareholders with a high and reliable dividend, or allow it to announce a slight hike in the very near future.

Domtar Corp. (TSX:UFS)(NYSE:UFS)

Domtar is one of the world’s leading providers of fibre-based products, including communication, specialty, and packaging papers, market pulp, and absorbent hygiene products. Its family of brands includes Domtar, Cougar, EarthChoice, Attends, Indasec, and Butterfly.

Domtar pays a quarterly dividend of US$0.435 per share, representing US$1.74 per share annually, which gives its NYSE-listed shares a yield of about 4.05% at the time of this writing. The company has raised its annual dividend payment each of the last seven years, and its 4.8% hike in February has it on track for 2018 to mark the eighth straight year with an increase.

I think Domtar’s strong growth of FCF, including its very impressive 126.3% increase to US$267 million in 2017, and its very conservative dividend-payout ratio, including a mere 39% of its FCF in 2017, will allow it to continue to provide its shareholders with dividend growth for many years to come.

Fiera Capital Corp. (TSX:FSZ)

Fiera Capital is the third-largest publicly traded asset manager in Canada with over $128 billion in assets under management as of December 31, 2017.

Fiera pays a quarterly dividend of $0.19 per share, representing $0.76 per share annually, which gives it a yield of about 7% at the time of this writing. The asset manager has raised its annual dividend payment for seven consecutive years, and its recent hikes, including its 5.6% hike last month, have it on pace for 2018 to mark the eighth consecutive year with an increase.

I think Fiera’s very strong cash-flow-generating ability, including its 60.9% increase in operating cash flow (OCF) to $92.52 million in 2017, and its sound dividend-payout ratio, including just 63% of its OCF in 2017, will allow it to continue to deliver dividend growth to its shareholders 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 stocks mentioned.

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