MENU

3 Stocks Offering Over a Century of Dividend Income

Image source: Getty Images.

Finding the perfect mix of income-generating investments to add to your portfolio can at times, take considerable time and patience to get right.

Fortunately, the market gives us plenty of options to choose from and income-seeking investors, in particular, will appreciate the assortment of stocks on the market today that have been paying dividends for well over a century.

Here’s a look at some of those companies and why you should consider one or more of them to balance out your portfolio.

Bank of Montreal (TSX:BMO)(NYSE:BMO) prides itself in being the oldest-dividend paying company in the country, having started to reward shareholders long before even Confederation. The bank’s stated policy to provide a stable payout level that falls in line between 40% to 50% of earnings, and the bank has maintained a steady flow of solid annual increases further back than most would expect.

The current quarterly yield stands at an impressive 3.88%, with the most recent hike coming into effect earlier this summer.

Apart from the impressive dividend payout and history, Bank of Montreal appeals to investors for a number of other reasons.

First, there’s Bank of Montreal’s sprawling network of branches that extends beyond Canada and into the lucrative U.S. market, specifically the Midwest, where a series of acquisitions over the past decade established Bank of Montreal as a regional powerhouse.

There’s also the emerging wealth management arm of Bank of Montreal that has been moving into further integrating technology into the process through offerings such as the bank’s new SmartFolio product with the potential to be a long-time revenue generator.

Another compelling investment option for income-seeking investors to consider is BCE Inc. (TSX:BCE)(NYSE:BCE). Telecoms have become notorious over the past few years for their income-generating potential, and while some of that sentiment has dropped off since interest rates began to creep up, Canada’s telecom offers a handsome quarterly dividend with a yield of 5.47% that should be a core holding in nearly every portfolio.

Looking past the impressive yield, BCE offers investors a solid business model that is well diversified beyond the core subscription model business of wireline, wireless, TV and internet service to encompass a massive media arm as well as ownership into both professional sports teams as well as home monitoring security systems.

In short, BCE has a massive moat over the entire Canadian economy that we access at least a few times a day in one way or another.

A third investment option to consider comes from Canada’s lucrative energy sector in the form of Imperial Oil (TSX:IMO). While the company’s 1.81% yield may initially seem less attractive than the other companies on this list, there are a few reasons to consider diversifying with Imperial.

First, the company has a well-diversified portfolio of investments in a multitude of project sites that includes Cold Lake, Kearl and Syncrude. Beyond that, Imperial also has a sprawling network of over 1,500 gas stations around the country and maintains a network of refineries.

Turning to results, in the most recent quarter Imperial reported net income of $749 million, more than double the amount reported in the same period last year, which came in at $371 million. On a per share basis, earnings came in at $0.94 per share, handily bearing the $0.44 per share reported in the same quarter last year.

Finally, the company has an active share buyback program that is running through June of next year that could see the repurchase of up to 5% of outstanding shares.

Motley Fool Canada Announces a FREE Gift for Investors

The financial world is buzzing as Iain Butler and his team of market-beating analysts in Stock Advisor Canada pick their favorite stocks for 2019 and beyond.

As a special gift for investors, they’ve decided to give away one of their top TSX stock picks of 2019 for FREE.


Click here to claim your free TSX stock pick for 2019

Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.