If you’re looking for a way to help add some cash flow to your TFSA and to accelerate its growth, investing in some quality dividend stocks can be a good way to do just that. Below are three stocks that pay more than 3% per year that could be great additions to your portfolio:
RioCan Real Estate Investment Trust (TSX:REI.UN) is one of the best REITs that you can invest in on the TSX. With a diversified portfolio and a broad reach across the country, it’s a great way to cash in on both rising property values and a successful economy, as that’s likely going to increase demand.
Although the stock has provided investors with just modest returns over the past five years, with RioCan’s share price up just around 2%, the dividend income makes the stock a special buy. At a yield of 5.5%, RioCan offers investors a great way to add some strong, monthly cash flow.
While dividend payments may not have seen much growth over the years, it’s still a very high payout that should have little trouble attracting investors. Investors just shouldn’t expect to see significant returns from the share price, as the stock is fairly stable one that generally doesn’t see big jumps in value.
However, with the company normally having little trouble posting a profit, it’s not nearly as risky as other oil and gas stocks on the TSX.
The stock has, however, been volatile over the past year but at a price-to-earnings multiple of just nine, Canadian Natural Resources could double as both a good dividend buy as well as an attractive value investment as well.
It’s trading at around 1.3 times its book value while also offering a dividend yield of approximately 4% per year.
Investors will certainly have more potential for capital appreciation by holding shares of Canadian Natural Resources than they will with RioCan, but there will also be more risk. We caught a glimpse this week of how quickly oil and gas stocks can jump on big developments in the industry.
IGM Financial Inc (TSX:IGM) is another good dividend option for investors in yet another industry. Wealth and asset management is a bit more of a stable business to invest in, especially with concerns about the economy and uncertainty around retirement likely weighing on the minds of individuals these days.
The stock has done well over the past year, providing modest returns of around 5% to shareholders. However, with a dividend yield of 5.9%, what makes this stock stand out is the recurring cash flow it can provide for investors on a quarterly basis.
With strong, consistent profits and a payout ratio that isn’t too high at around 75%, IGM could be a good stock to hold for investors that are focused on a good dividend.
During the past four quarters, the company’s profits have been within $167 million to $198 million, operating under a fairly tight range, as there appears to be little concern of the company incurring a loss.