The importance of having a well-diversified mix of income-producing investments can’t be understated. While they can provide a steady stream of income throughout the calendar year for mature accounts, they can also put your portfolio growth on autopilot during earlier investment years, adding significantly to your eventual nest egg.
Here are some of the best dividend investments on the market that investors should consider adding today, which could provide a steady stream of income all year long.
Payouts in January, April, July, and October
BCE Inc. (TSX:BCE)(NYSE:BCE) is a great stock to start a year of dividends with. Canada’s largest telecom pays a very impressive 5.62% yield that is supported primarily through core wireless, wireline, TV, and internet subscription services.
In addition to those core subscription services that blanket the country with coverage, BCE has an impressive array of media holdings that include TV and radio stations as well as ownership in professional sports teams.
Why should you invest in BCE? Despite the knee-jerk reaction to sell telecoms when interest rates start creeping up, investors should take solace in the very secure and stable business that BCE runs, which has been rewarding shareholders for well over a century.
When you add in the fact that BCE is expanding into the home security market and investing in its already formidable wireless network, BCE emerges as a classic a buy-and-forget stock that will provide income and growth for years to come.
BCE currently trades at below $54 with a P/E of 17.47.
Payouts in February, May, August, and November
Bank of Montreal (TSX:BMO)(NYSE:BMO) is another great dividend investment that has also been rewarding shareholders for well over a century. In fact, BMO was the first company in Canada to offer a dividend, pre-dating even Confederation.
That’s an incredible amount of time that spans through wars, recessions, and boom periods, and Bank of Montreal managed to pay dividends without failure. The current yield stands at a very solid 3.70%, and the bank has an established precedent of annual or better increases that goes back a decade.
Canada’s big banks make stellar investments, and the recent trend of interest rate increases as well as favourable, if not record-breaking, earnings seasons really make a compelling investment case for Bank of Montreal.
The current stock price sits at $100 with a P/E of 12.90.
Payouts in March, June, September, and December
To finish off the year on a high-note, there’s not one but two dividend greats to consider.
Canadian National Railway Company (TSX:CNR)(NYSE:CNI) is the largest railroad in Canada, with over 32,000 km of track that extends to three separate coastlines in North America — a feat that no other railroad can attest to.
While Canadian National’s yield pales in comparison to the other companies on this list, the 1.77% yield is both incredibly stable and has a solid history of growth.
Railroads are often considered a backbone and barometre of the entire North American economy, connecting raw materials and products to markets and warehouses right across the continent. In total, Canadian National hauls upwards of $250 billion worth of goods each and every year, which is reason enough for any investor to consider a long-term investment.
Fortis Inc. (TSX:FTS)(NYSE:FTS) is another great stock worth adding to your portfolio. Fortis is one of the largest utilities on the continent, offering service to parts of Canada, the U.S., as well as several Caribbean island nations.
A blessing and curse of utilities is their incredibly stable business model. The vast majority of a utility’s revenue is generated through regulated contracts, which can span upwards of a decade or more. This creates a stable and secure revenue stream, which utilities often pass on to investors in the form of a very handsome dividend payout.
In the case of Fortis, that dividend yield is a solid 4.01%, and Fortis has an established precedent of consecutive annual dividend hikes that spans well over four decades.