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4 Stocks to Target for Monster Dividends

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The decision to pay dividends is discretionary on the part of publicly listed companies. Dividend payments foster goodwill and are one way of retaining loyal investors or attracting new ones. Generally speaking, dividends are beneficial, but dividend investors prefer high-paying dividend stocks.

Investors who like dividends will invest in companies known for paying juicy dividends. Names like Alaris Royalty (TSX:AD), Inter Pipeline (TSX:IPL), Crombie Real Estate Investment Trust (TSX:CRR.UN), and The Northwest Company (TSX:NWC) never fail to entice investors.

Fantastic four

Alaris Royalty is a private equity company with a very specific focus. The company specializes in providing long-term capital to private companies all across North America.

Every investor should at least give serious thought to Alaris Royalty’s monster dividend yield of 7.85%. The company has been paying dividends for the last 11 years.

The companies that Alaris provides capital to are not on the selling block but are looking to further grow their businesses. The companies also want to maintain control of the respective businesses. Alaris will provide funding support or recapitalize the firms but will not undertake a buyout. Revenues will be derived from perpetual preferred equity. Thus, Alaris is the preferred equity source of the best companies in various industries.

Alaris will not actively participate or dictate day-to-day operations. Aside from the funding, support will be limited to strategic advice to help clients achieve the next level of success.

Inter Pipeline’s dividend yield is nearly at par with Alaris Royalty. This $9.18 billion firm is a top-ranked North American energy infrastructure company. The company is currently building the Heartland Petrochemical Complex, which is Canada’s first integrated petrochemical complex. This complex also represents the largest growth project in the history of Inter Pipeline.

Investors are not purchasing Inter Pipeline for the high dividends but because the energy stock is a high-quality investment.

Crombie is one of the leading national retail property landlords in Canada. The $2.36 billion open-ended REIT has a diverse portfolio consisting of commercial, retail, and residential developments.

Currently, Crombie has $4.6 billion in assets with a significant development potential over the next 10 to 15 years. The top line and bottom line have been consistent for several years now, as have dividend payments. Crombie stands out because of the 5.7% annual dividend yield.

Apart from the steady passive income from the REIT, dividend investors become quasi-landlords of high-quality real estate investment properties.

Of the four dividend stocks in focus, The North West Company pays the lowest but still a fairly high 4.43% annual dividend yield. The $1.46 billion company is a profitable niche player in the grocery store industry. The retail locations are in isolated, far-flung communities where competition is little or practically absent.

North West’s most famous brand is Giant Tiger. The company owns none of the 41 managed franchises across Canada. North West has operations in Alaska, Barbados, British Virgin Islands, Cayman Islands, and Guam. Other services provided in some of these locations include airline charters and financial services.

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All of the companies appeal to dividend lovers and income seekers. Your portfolio is fully diversified and could produce high returns if you own these four fantastic stocks.

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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 Christopher Liew has no position in any of the stocks mentioned. Alaris is a recommendation of Dividend Investor Canada.

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