For many investors looking forward to the next phase of their lives, the most important decision may very well be the next one. Depending on the situation, the investments made today could either lead to a much more prosperous retirement that includes a little more travel, or if bad decisions are made, much less fun and much less travel.
Given the challenging market conditions, the expression “a bird in the hand is worth two in the bush” has never been more true. For those seeking a high probability of success, here are the best names available.
At the very top of the list is none other than Restaurant Brands International Inc. (TSX: QSR)(NYSE: QSR), which at a current price of $78 is offering investors a dividend yield of no less than 3% as the company continues to expand its footprint across the country. In spite of the very well known Tim Hortons’ franchise reaching a point of saturation, the growth potential remains plentiful. After acquiring Popeyes Chicken, the bright orange signs have become much more prevalent in many neighbourhoods. Over the next five years, investors will not only benefit from the dividend payments, but also from the capital appreciation that will go alongside the bright orange sign.
The second name on the list is Enbridge Inc. (TSX: ENB)(NYSE: ENB), which after trading sideways for close to two years is finally ready for another major move upwards. As shares have now rallied to more than $47 each, the dividend yield remains a fairly attractive 5.7%, which is expected to increase again over the next year. In fact, this is one of the only companies that has made available on their website a clear road map as to where the dividend payments are going (and when). Increases are to be expected.
In addition to the dividend, the main factor that is so attractive is the unique service provided by the company. Michael Porter may have another fantastic real-life example with Enbridge!
The next name for investors to consider is none other than Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM), which at a current price of $122 per share will reward investors with a dividend payment that is highly likely to increase substantially over the next five years. After issuing additional shares to complete a U.S. wealth management acquisition, the bank has resumed its share buyback and is once again reducing the number of shares outstanding. As corporate profits continue to increase (and are spread over fewer shares), investors will be the one to reap the rewards in the form of higher dividends!
The last name on the list is none other than Algonquin Power & Utilities Corp. (TSX: AQN)(NYSE: AQN), which is very well positioned to benefit from the increase in demand of electricity. In addition to homes needing power, the increase in electric vehicles has been a huge boom in this sector. For investors willing to remain patient, the dividend yield will only be the beginning!
