Do you need a great amount of income coming from your investments? If so, you should be interested by the five stocks I present below, which all have dividend yields over 5%.
BCE Inc. (TSX: BCE)(NYSE: BCE)
BCE is Canada’s largest telecommunications company.
This company is a reliable dividend payer, having paid a dividend since 1881. BCE has never cut or reduced its dividend in all its history and is raising it every year. The stock currently pays a quarterly dividend of $0.755 per share for a yield of 5.5%. The dividend has five- and 10-year growth rates of 5.3% and 7.5%, respectively.
The share price is down 9% year to date, affected by the rise in interest rates.
Inter Pipeline Ltd. (TSX:IPL)
Inter Pipeline is a petroleum transportation, storage, and natural gas liquids processing company.
The company has been paying a dividend since 1997. The dividend was initially paid each quarter, but it began to be paid each month in 2003. A monthly dividend is interesting if you need to live off your investments.
Inter Pipeline currently pays a monthly dividend of $0.14 per share for a yield of 6.7%. The dividend has five- and 10-year growth rates of 8.1% and 7.2%, respectively.
The pipeline stock is down 2% year to date but has gained 14% in the last three months. The drop in share price during the last year can be explained by rising interest rates, which pipeline stocks are sensitive to.
Laurentian Bank of Canada (TSX: LB)
Laurentian Bank is the seventh-largest Canadian bank in terms of assets.
Like other Canadian banks, Laurentian Bank is a reliable dividend payer. The bank has been raising its dividend every year for the last 10 years and even twice a year since 2011.
Laurentian Bank currently pays a quarterly dividend of $0.64 per share for a yield of 5.6%. This dividend yield is higher than the yield of the six-largest Canadian banks, which have yields between 3.2% and 4.6%.
Laurentian Bank’s dividend has five- and 10-year growth rates of 5.1% and 7.2%, respectively.
The bank’s stock has dropped 18% year to date. This sell-off was mainly caused by the bank buying back problematic mortgages. The management said that the situation has been resolved, so it looks like the market overreacted.
Capital Power Corp. (TSX: CPX)
Capital Power is an independent power producer company based in Edmonton, Alberta.
The company has been paying dividends since 2009 and has been increasing its dividend once a year since 2014. The power company currently pays a quarterly dividend of $0.4175 per share for a yield of 6.5%. The dividend has a five-year growth rate of 5.8%.
Shares of Capital Power have risen more than 5% since the beginning of the year.
Exchange Income Corporation (TSX: EIF)
Exchange Income is an aerospace and aviation firm based in Winnipeg. Besides its aerospace and aviation segment, the firm also has a manufacturing segment.
The company began to pay a dividend to shareholders in 2004. The dividend was initially paid quarterly but began to be paid on a monthly basis in 2005, which is interesting if you need monthly income.
Exchange Income currently pays a monthly dividend of $0.1825 per share for a yield of 6.7%. The dividend has five- and 10-year growth rates of 5.4% and 3.9%, respectively.
Shares of Exchange Income are down 8% since the beginning of the year.
