Investors looking to secure a good dividend have plenty of options to choose from. However, if you’re not planning on holding onto the investment for decades, you might be better off looking for a high-yielding stock rather than a low yield that has been growing over time. Below are three stocks with dividend yields of over 5%.
Slate Office REIT (TSX:SOT.UN) offers investors a good way to indirectly invest in the economy since Slate’s portfolio consists of around 40 commercial properties with a focus on office space. And so a growing and successful economy is a recipe for increasing rents a lot of stability for Slate.
In the past year, the stock has declined by more than 20%. While that might be bad for the stock’s returns, it’s resulted in a higher yield for investors. Although the company recently slashed its dividend payments, with the drop in price investors are still earning 6.6% per year, which is still a very high payout.
With strong sales growth of around 40% in its most recent quarter and profits more than doubling, Slate has been able to successfully grow both organically and through acquisitions as well. And with the dividend recently being reduced, odds are that we wouldn’t see another one happen anytime soon.
Rogers Sugar Inc (TSX: RSI) has been nothing but consistent over the past five quarters, with revenues remaining between $189 million and $212 million. During that time, it has been profitable in every quarter, and only once were profits below $10 million.
Sugar products remain in high demand, which makes the business a good one to invest in. In five years, the stock price has risen by more than 26%. In addition to earning some decent capital appreciation, the stock is also a good source of dividend income. With payouts yielding 6%, this too is a stock that offers investors a good above average yield.
While the stock is currently near its 52-week high, it’s still a decent buy, trading at less than two times its book value and only 13 times its expected earnings. The good news for dividend investors is that the range between its 52-week high and low is less than a dollar, so there haven’t been big fluctuations in stock price over the past year.
Inter Pipeline Ltd (TSX:IPL) offers investors the highest yield on the list, paying out a dividend of 7.7% per year. The company recently hiked its dividend payments and that’s something that might continue if oil prices remain strong. However, at a minimum, it’s still a great yield for investors to take advantage of today.
Year to date, Inter Pipeline’s stock has climbed by 15% meaning its dividend would have been even higher if not for the recent rise in price. With oil prices starting to climb, we could see Inter Pipeline’s share price climb even higher. The stock is still a good buy for value investors, however, trading at around 15 times earnings and 2.3 times its book value.
While there will always be some risk around oil and gas stocks, they’ve been undervalued for some time now, and there’s also a lot of potential upside if investors ever become bullish on the industry again.
