3 High-Yield Dividend Stocks Gifting up to 5.6%

This trio of high-yield plays, including Toronto-Dominion Bank (TSX:TD)(NYSE:TD), can provide the fat income you need now.

| More on:
edit Person using calculator next to charts and graphs

Image source: Getty Images.

Hi there, Fools. I’m back to highlight three top high-yield dividend stocks. As a reminder, I do this because stocks with attractive yields

  • provide a healthy income stream in both good and bad markets; and
  • tend to outperform the market over the long run.

The three stocks below offer an average dividend yield of 4.3%. If you spread them out evenly in a $250K RRSP account, the group will provide you with an annual income stream of $10,750 — on top all the appreciation you could earn.

Let’s get to it.

Banking on it

Leading off our list is financial services giant Toronto-Dominion Bank (TSX:TD)(NYSE:TD), which currently boasts a juicy dividend yield of 4.1%.

TD’s wide international reach, strong diversification, and long history of uninterrupted payments continue to underpin its healthy dividend. In the most recent quarter, TD posted record earnings as revenue improved 6% to $10.5 billion.

TD’s adjusted income for its Canadian retail and U.S. retail segments increased 3% and 11%, respectively.

“This was a great quarter for TD, reflecting increased earnings and revenue growth across all of our business segments,” said CEO Bharat Masrani. “Our record earnings are a testament to the strength of our diversified business model which enables us to enrich the lives of our customers as we continue to innovate for the future.”

TD is up about 7% so far in 2019.

Fortis of strength

With a healthy dividend yield of 3.3%, electric utility Fortis (TSX:FTS)(NYSE:FTS) is next on our list of big income stocks.

Fortis’s dividend continues to be backed by massive scale ($52 billion in total assets), a highly regulated operating environment, and extremely stable cash flows. In the most recent quarter, adjusted EPS clocked in at $0.54 as revenue inched up 1% to $2 billion.

Looking ahead, management continues to target average annual dividend growth of about 6% through 2023.

“Over the long term, Fortis is well positioned to enhance shareholder value through the execution of its capital expenditure plan, the balance and strength of its diversified portfolio of utility businesses, and growth opportunities within and proximate to its service territories,” wrote the company.

Fortis is up about 23% in 2019.

Husky opportunity

Rounding out our list is oil and gas company Husky Energy (TSX:HSE), which currently offers a fat dividend yield of 5.6%.

Operational headaches and weak energy prices have weighed heavily on the stock, but now might be an opportune time for investors to jump in. In Q2, Husky generated funds from operations of $802 million, suggesting that the dividend continues to be backed by hefty cash flows.

Looking ahead, management expects full-year production of 290,000-305,000 barrels of oil equivalent per day.

“Our focus remains on capital discipline and consistent execution, while increasing our ability to capture higher margins across the Integrated Corridor and Offshore businesses,” said CEO Rob Peabody.

Husky shares are off nearly 60% over the past year.

The bottom line

There you have it, Fools: three top high-yield stocks worth checking out.

As always, don’t view them as formal recommendations. Instead, look at them as a starting point for more research. A dividend cut (or halt) can be especially painful, so you’ll still need to do plenty of due diligence.

Fool on.

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 Brian Pacampara owns no position in any of the companies mentioned.     

More on Dividend Stocks

A person builds a rock tower on a beach.
Dividend Stocks

CPP Pension: Boost Your Payouts by $5,232 per Year

You can raise your after-tax CPP by making RRSP contributions. Alimentation Couche-Tard (TSX:ATD) is a good RRSP stock.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

Here are three no-brainer stocks that are suitable for anyone getting started on their investing journey.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

3 Top Dividend Stocks That Keep Raising Their Payouts

These three TSX stocks are ideal buy as they consistently raise their payouts, depicting their healthy financials.

Read more »

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

This 5% Dividend Stock Pays Cash Every Month

This monthly dividend stock offers cash every month, but also returns that continue to climb higher from being in a…

Read more »

Solar panels and windmills
Dividend Stocks

How Much Will TransAlta Renewables Pay in Dividends This Year?

TransAlta Corporation’s (TSX:TA) acquisition of TransAlta Renewables stock holds significant implications for income-oriented investors who previously held this monthly dividend…

Read more »

STACKED COINS DEPICTING MONEY GROWTH
Dividend Stocks

3 Stocks That Can Help You to Get Richer in the Next 5 Years

Consistent growth stocks with a relatively bright future are one of the most trustworthy ways to grow wealth.

Read more »

Dividend Stocks

3 Blue-Chip Stocks Every Canadian Should Own

These Canadian blue-chip stocks are backed by well-established businesses and a growing earnings base, enabling them to generate above-average returns.

Read more »

grow money, wealth build
Dividend Stocks

Is This 7.25%-Yielding Dividend Grower the Ultimate Income Stock?

This top Canadian dividend stock has increased the distribution annually for nearly three decades.

Read more »