The S&P/TSX Composite Index fell 93 points below the 16,000 mark on May 29. The drop coincided with a broad sell-off in Asia, Europe, and all three of the top U.S. indexes. Trade anxiety has re-emerged, as NAFTA talks turned sour in May, and plunging oil prices have also weighed on the energy-heavy TSX.
The ongoing political crisis in Italy had the largest impact. There is the rising likelihood of another election after the populist protest party Five Star and the far-right Lega failed to form a government. A second election so soon after the March 4th contest could actually see populist forces gain more power — in particular, Lega, which is polling around 24% currently. This could set up a showdown that could plunge the European Union into its biggest political crisis since Brexit.
Investors may want to hunker down and look to income-yielding stocks during this stormy period. Let’s look at five of my top dividend options today.
Fortis Inc. (TSX: FTS)(NYSE: FTS)
Fortis is a utility company that delivers service to over 2.5 million customers in the U.S. and Canada. Shares of Fortis are down 9.2% in 2018, as utilities have suffered after an early interest rate hike and the promise of further tightening. In the first quarter, net earnings rose to $323 million from $293 million in the prior year. Fortis offers a quarterly dividend of $0.425 per share, representing a 4% dividend yield. The company has delivered over 40 years of dividend growth.
Telus Corporation (TSX: T)(NYSE: TU)
Telus is a Vancouver-based telecommunications company. Its stock has dropped 3.9% in 2018 so far. Telus posted 76,000 new postpaid wireless, internet, and TV customer additions in the first quarter, and free cash flow surged 104% year over year to $443 million. The company last announced a dividend of $0.505 per share, representing a 4.3% dividend yield.
Genworth MI Canada Inc. (TSX:MIC)
Genworth MI Canada is the largest private residential mortgage insurer in Canada. Its stock has dropped 7.9% in 2018 in the midst of a weak year for Canadian housing. Total premiums written were down 30% from Q4 but were up 22% year over year. New OSFI mortgage rules impact uninsured buyers, so Genworth is a one of the more attractive targets in the industry. The stock boasts a quarterly dividend of $0.47 per share, representing a 4.6% dividend yield.
Stantec Inc. (TSX: STN)(NYSE: STN)
Stantec is an Edmonton-based professional services company. Shares are down 7.6% in 2018 so far. Net revenue rose $5.8 million year over year to $876.6 million in the first quarter. Adjusted net income climbed 4.4% to $47.8 million. The company declared a dividend of $0.1375 per share, representing a 1.5% dividend yield.
Brookfield Renewable Partners LP (TSX: BEP.UN)(NYSE: BEP)
Brookfield Renewable is a renewable power-generating company with a global portfolio. Shares have dipped 5.5% in 2018 as of close on May 29. Funds from operations (FFO) grew to $193 million in the first quarter compared to $166 million in Q1 2017. Its liquidity position at the end of the quarter totaled $1.7 billion. The stock offers a dividend of $0.49 per share, representing a 5.8% dividend yield.
