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3 Delicious Dividend Stocks Paying up to 4.5%

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Dividend stocks are a great way for investors to add some recurring income to their day-to-day lives. What’s even better is when you have an opportunity to take advantage of potential growth as well. All three stocks listed below can offer investors a great mix of both capital appreciation and dividend income.

A and W Revenue Royalties (TSX:AW.UN) currently pays investors an annual dividend of about 4.5%. It’s an attractive payout for what’s a very safe investment. The fast-food chain is a very popular option for consumers and it’s a stock that could be a great long-term buy.

The fund has had solid, stable growth in both its top and bottom lines in recent years. And with the success of the Beyond Meat burgers in its menu, we could see even stronger numbers in future quarters. Investing in the fund is investing in the strength of the A&W brand, which today has a lot of value, as it focuses on offering healthier options for consumers.

And the results speak for themselves: in four years, the company’s top line has grown by more than 40%. With the stock trading around 20 times earnings, it’s a modest price for an investment that can generate both dividend income and capital appreciation.

MTY Food Group (TSX:MTY) has declined more than 16% since February after a disappointing quarter sent the stock into a tailspin. Despite sales rising 76% from the previous year, there was no improvement in the net income.

With dozens of restaurants under its belt and the company continuing to acquire more, MTY has built a strong assembly of brands under itself. In just four years, sales have tripled for MTY, largely a result of acquisitions.

Admittedly, its dividend of just over 1% isn’t going to attract a lot of interest from investors, but it’s a good boost to the potential capital appreciation that can be earned from the stock. Over the past five years, MTY’s share price has doubled, and with a price-to-earnings multiple of less than 15, it’s a good price for a stock that still has a lot of potential.

Restaurant Brands International (TSX:QSR)(NYSE:QSR) doesn’t have the number of brands that MTY has, but it makes up for that by owning some of the biggest names in the industry. Burger King, Tim Hortons, and Popeyes are dominant chains in the Canadian and U.S. markets and make Restaurant Brands one of the top food stocks to invest in.

While the growth options might appear limited, the company has been looking to make moves to improve Tim Hortons’s struggling growth numbers. With new menu options and expansion into more international markets, there are still many ways for the popular coffee shop to bring in more sales.

Restaurant Brands recently hiked its payouts and now pays investors around 3% per year. And with payouts made in U.S. dollars, it gives Canadian investors an opportunity to cash in on a rising U.S. currency. This is a dividend stock to watch for, as in just two years quarterly payments have nearly tripled.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any of the stocks mentioned. The Motley Fool owns shares of MTY Food Group and RESTAURANT BRANDS INTERNATIONAL INC and has the following options: short April 2019 $78 calls on Restaurant Brands International. A and W Revenue Royalties is a recommendation of Dividend Investor Canada. MTY Food Group is a recommendation of Stock Advisor Canada.

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