3 Dividend Stocks Paying Up to 8.5%

Investors can still earn a great, safe yield with Telus Corp (TSX:T)(NYSE:TU) and these two other stocks.

| More on:
Growth from coins

Image source: Getty Images

Now may not be the safest time to go looking for dividend stocks. Many companies are cutting or suspending their payouts in order to conserve cash. However, the three stocks below are still safe bets to continue paying their dividends. With their stock prices down this year, investors have an opportunity to buy them while they’re paying better-than-normal yields:

Telus Corp (TSX:T)(NYSE:TU) is a top stock that investors can buy on the dip today. Down 10% by the end of April, it’s done a bit better than the TSX, which is down about 14%. Stability is one thing investors have come to expect from Telus. The stock averages a beta of 0.60, suggesting that it’s a lot more stable than the TSX in its movements.

The telecom company is an industry leader in Canada — and demand for Internet isn’t going to go anywhere, certainly not during a pandemic when people are staying indoors. That’s why it may be one of the better TSX stocks to buy today — it’s a safe bet to get through these difficult times without incurring much carnage.

The stock currently pays a quarterly dividend of $0.29125 which yields around 5.1% annually. It’s a solid dividend from a company that investors should be able to count on. Telus has also increased its dividends in the past. And with growing payouts, investors can earn more on their initial investment the longer they hold onto Telus.

Hydro One Limited (TSX:H) is even less volatile than Telus, with its beta around 0.23. The utility stock makes for another good investment that you can count on to produce cash flow for your portfolio. The company’s posted a strong operating margin of at least 15% in each of its last 10 quarterly results.

The consistency the stock offers is a key reason why investors haven’t been quick to sell the stock — year to date, Hydro One is down just 1%.

The stock suffered a larger decline in March when the markets were crashing. However, it was quick to bounce back and is now around where it started the year. Hydro One pays investors a quarterly dividend of $0.2415, which on an annual basis pays approximately 3.9%.

While that’s not as high a yield as what Telus offers, it may be a better fit for risk-averse investors who just want a payout and not worry about anything else.

NorthWest Healthcare Properties Real Estate Investment Trust (TSX:NWH.UN) is down more than 20% through the first four months of 2020. The stock pays investors a monthly dividend of $0.06667. At a reduced share price, the dividend now yields around 8.5% per year. It’s a top dividend you might expect from a risky investment.

However, NorthWest’s portfolio consists of hospitals, medical office buildings, and other healthcare facilities. The stock has relatively lower risk than other real estate investment trusts because it’s not heavily exposed to retail and has strong geographical diversification.

The company issued an update relating to COVID-19 in April. NorthWest reminded investors that the majority of its tenants in Germany and Canada, where it has the bulk of its properties, are  “comprised primarily of doctors and related medical professionals.”

Shares of NorthWest are currently trading around book value. Investors may benefit not only from its dividend income, but also from the potential for the stock to rise in value. Prior to 2020, the last time shares of NorthWest traded this low was back in late 2018 during the last big market selloff.

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. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Dividend Stocks

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

3 Evergreen Investments for Beginners

Choosing leaders from industries that consistently perform well regardless of the market conditions is one of the simplest ways of…

Read more »

Retirement
Dividend Stocks

Passive Income: Buy Dividends to Rule Your Retirement

You can establish a passive-income stream by investing in high-dividend ETFs like BMO Equal Weight Banks ETF (TSX:ZEB).

Read more »

consider the options
Dividend Stocks

Magna Stock: Is a 3% Dividend Yield Enough to Make Investors Stay?

Magna (TSX:MG)(NYSE:MGA) stock has grown 8% in the last week but is down over the last year. So is a…

Read more »

Close up shot of senior couple holding hand. Loving couple sitting together and holding hands. Focus on hands.
Dividend Stocks

Retirees: How to Stay Calm in Market Downturns

Are you losing sleep because of market volatility? Here are three tips that should give you peace of mind.

Read more »

Index funds
Dividend Stocks

Buy the Pullback: 2 Top TSX Dividend Stocks for RRSP Investors

The drop in the TSX Index is giving RRSP investors a chance to buy top dividend stocks at cheap prices.

Read more »

Dividend Stocks

2 Stable REITs for $177 in Monthly Income

These two REITs offer stable income you can bring in each month but also have valuable numbers for investors wanting…

Read more »

funds, money, nest egg
Dividend Stocks

3 of the Best Dividend Stocks to Combat Inflation and Rising Interest Rates

Suncor, TD Bank, and Tourmaline are dividend stocks benefitting from rising inflation and rising interest rates.

Read more »

Community homes
Dividend Stocks

Housing Correction of 20% Could Come in 2022: How to Prepare

A housing correction of up to 20% could be coming thanks to inflation and interest rates, but there are other…

Read more »