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Passive Income Investors: 3 Dividend Stocks Yielding Up to 6%

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Passive income is a great thing; as the name suggests, you can earn money without having to work for it. That’s why finding some good dividend stocks is a great way to add some recurring income to your portfolio. Below are three companies with great payouts that can help you accumulate wealth.

IGM Financial Inc. (TSX:IGM) offers a wide variety of financial services to its customers, and in a growing economy, that’s a good place to invest.

While the company hasn’t seen a lot of growth over the years with revenues rising less than 8% over the past four years, it has given investors a lot of stability and consistency in its bottom line.

With a dividend yielding 6%, the stock offers investors a good quarterly payout as well. Part of the reason for the above-average dividend is that during the last 12 months, IGM’s share price has fallen 5% while dividend payments have remained intact, pushing the yield percentage up as a result.

Although IGM hasn’t increased its quarterly payments for years, investors would likely be pleased if payouts merely continued at such a high rate.

This stock is a good option for investors looking to buy and hold and mainly looking for a good dividend.

Innergex Renewable Energy Inc (TSX:INE) is another good stock for dividend investors; although it may not be as stable and consistent as IGM has been over the years, it also has a lot more growth potential.

The renewable energy stock has seen its revenues rise by more than 130% since 2014 and it has been profitable for three straight years. There’s still a lot of growth left in this industry, making Innergex a solid long-term buy.

The company recently raised its payouts and has a good track record for doing so over the years. Currently, the stock pays investors a yield of 4.7%, which is still a very good dividend, especially given the tremendous growth opportunities for the company.

Innergex might be a bit of an expensive buy today, trading around its 52-week highs and at more than four times its book value, but there could be a lot of room for the stock to continue to rise in the years to come.

Year to date, Innergex’s share price has climbed by more than 15%.

TC Energy Corp (TSX:TRP)(NYSE:TRP) has been having a terrific 2019 so far, with its share price up around 35%. Despite all the controversy surrounding the oil and gas industry, the company remains a safe and solid investment, as TC Energy plays an important role when it comes to energy infrastructure in North America.

While it did have some hiccups in 2015 when it recorded a big loss, it has more than recovered, with profits of $3.7 billion in 2018.

It also has a good history of paying and increasing dividend payments, and even with the rising share price it’s still currently yielding 4.5%.

The stock has a lot of good value and at just 16 times earnings, investors won’t be paying much of a premium to own one of the largest stocks on the TSX.

If construction on the Keystone XL ever gets moving, the stock could benefit from a lot more bullishness.

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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.

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