Both seasoned and novice investors can appreciate the joy of discovering well-paying dividend investments. For seasoned investors closer to retirement, those stocks can represent an income stream, and more novice investors will use those dividends to grow their nest eggs.
Here are few of the most sought-after options to add to nearly any income-seeking portfolio.
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of the largest banks in Canada, and over the years it has grown a sizable network of locations within the U.S. that now spans 15 states and Washington, D.C. Incredibly, TD’s growing size in the U.S. market now exceeds the number of branches in Canada.
That sizable U.S. footprint will continue to fuel growth for the bank for the next several years. In the most recent quarter, the U.S. segment realized 24% year-over-year growth. With a focus on retail banking and an emphasis on providing the best possible customer service, TD continues to attract customers and smash records.
In terms of a dividend, TD offers a quarterly dividend which pays an impressive 3.54% yield.
Canadian National Railway (TSX:CNR)(NYSE:CNI) may not seem like the ideal dividend investment, especially considering the quarterly yield provides a respectable, but not overly impressive 1.69% yield.
Where Canadian National does impress is when considering the moat that the railway holds over the competition and, more importantly, over the entire North American economy.
Rail freight remains the single largest source of freight, and Canadian National is the only railroad with access to three coastlines on the entire continent. This puts Canadian National at an incredible advantage over its peers, which — when factoring the massive costs of a new competitor emerging to counter Canadian National’s supremacy — makes the railroad an impeccable investment option for long-term investors.
No list of long-term dividend investments would be complete without mentioning utilities and telecoms, and this is where both Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) and BCE Inc. (TSX:BCE)(NYSE:BCE) come into play.
Algonquin holds potential for both income- and growth-seeking investors. The company provides transmission, generation, and distribution services across electric, gas, and water elements across its two subsidiaries to over 750,000 customers in over a dozen U.S. states.
Interestingly enough, Algonquin differs from many of its utility peers in that the company has a sizable portfolio of renewable energy facilities located across Canada and the U.S. with hydro, solar, thermal, and wind elements through its Liberty Power subsidiary.
From a dividend standpoint, Algonquin provides a quarterly dividend to investors which provides a very handsome yield of 5.32%.
BCE is the largest telecom in Canada and enjoys one of the most impressive moats across any segment. The BCE empire expands beyond the typical core subscriptions for internet, phone, and TV services to encompass a large media empire that includes radio and TV stations as well as ownership in professional sports teams.
Interestingly enough, most of us don’t realize how much BCE has blanketed us in our daily lives, whether it is listening to a BCE-owned radio station or watching a BCE-owned TV station featuring a BCE-owned sports team that is streamed on our BCE-provided cell service.
Above all, BCE’s wireless solution is what investors should really focus on. Over the course of the past decade, wireless services have gone from a convenience to a must-have across an increasing part of our lives. Smartphones are taking over for an increasing number of devices we used to have, and that reliance is going to continue over the next few years to the benefit of BCE.
In terms of a dividend, BCE provides a quarterly payout with an impressive yield of 5.53%.
