3 Top Dividend Stocks Yielding As High As 9.6%!

This group of dividend-growth streakers, including Telus (TSX:T)(NYSE:TU), can help give your portfolio a much-needed raise.

| More on:
young woman celebrating a victory while working with mobile phone in the office

Image source: Getty Images

Hello there, Fools. I’m back to highlight three attractive dividend-growth stocks. As a quick reminder, I do this because companies with consistently growing dividends

So, if you’re looking to protect your portfolio from this recent market crash, this trio is a good place to start.

Let’s get to it.

Telus everything

Kicking things off is telecom giant Telus (TSX:T)(NYSE:TU), which has grown its dividend a whopping 134% over the past 10 years.

Despite pandemic concerns and increasing price competition, Telus’ dividend continues to be backed by impressive wireless growth, robust cash flow production, and a highly regulated operating environment. In the company’s recent Q1 results, for example, revenue improved 5% as wireless net additions clocked in at a solid 70,000.

Moreover, management is deferring its full-year 2020 guidance to the second quarter, while continuing to focus on cash flow and dividend growth.

“TELUS once again achieved strong financial and operational results in the first quarter, characterized by our hallmark of meaningful customer growth, together with enhanced profitability, despite the challenging circumstances we faced in the month of March,” said CEO Darren Entwistle.

Telus shares currently trade at a P/E of 15 and offer a dividend yield of 5.1%.

Fortis of strength

With dividend growth of 41% over the past five years, electricity giant Fortis (TSX:FTS)(NYSE:FTS) is next up on our list.

Fortis shares have held up very well during this pandemic, suggesting that they remain a highly effective recession-proof play. Specifically, the company’s high-quality portfolio and massive scale efficiencies continue support stable results.

For example, in the company’s Q1 results earlier this week, Fortis earnings came in at $312 million on revenue of $2.39 billion. More importantly, the company’s five-year capital spending plan and annual dividend growth target of 6% remain unchanged.

“The strength of our diversified business model was evident in the first quarter as our business performed well, reflecting modest impacts associated with the COVID-19 pandemic,” said CEO Barry Perry. “Given the critical infrastructure we operate and the need to keep the lights on and natural gas flowing, we are focused on the health and safety of our employees, customers and communities, and the continued reliability of our systems.”

Fortis offers a solid dividend yield of 3.5%.

Key factor

Rounding out our list is midstream energy company Keyera (TSX:KEY), which has delivered steady dividend growth of 40% over the past five years.

After getting clobbered in March, Keyera shares have soared over the past month, suggesting that the worst is behind the stock. Over the long run, the company’s well-integrated assets, smart acquisitions, and robust cash flows should continue to support solid dividends.

In 2019, Keyera achieved record earnings of $444 million while distributable cash flow clocked in at an impressive $594 million. More important, the company ended the year with a rock-solid financial position.

“Keyera’s strong balance sheet and cash flow provide the capacity and flexibility to fund these organic growth opportunities,” wrote the company. “We are well positioned to fund the remaining portion of our current growth capital program without issuing common equity, apart from the dividend reinvestment program.”

Keyera shares currently boast a mouth-watering dividend yield of 9.6%.

The bottom line

There you have it, Fools: three attractive dividend-growth stocks worth checking out.

As always, they aren’t formal recommendations. They’re simply a starting point for more research. The snapping of a dividend-growth streak can be particularly painful, so plenty of due diligence is still required.

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

Hands holding trophy cup on sky background
Dividend Stocks

3 of the Top Dividend Stocks in Canada

Top TSX dividend stocks are still on sale.

Read more »

man touches brain to show a good idea
Dividend Stocks

Pembina Vs. Brookfield Renewable: Which High-Yield Dividend Stock Is Better?

Both Pembina Pipeline (TSX:PPL) and Brookfield Renewable Partners (TSX:BEP.UN) look like strong dividend stocks, but is one better?

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $20,000 in 2 TSX Stocks for $863/Year in Passive Income

Shares of these two fundamentally strong Canadian companies can help you start a worry-free passive-income stream.

Read more »

Dividend Stocks

The Best Canadian Stocks to Buy With $1,000 Right Now

If there are just three Canadian stocks you can pick up with $1,000, make them these three. All have dividends…

Read more »

Growing plant shoots on coins
Dividend Stocks

2 Incredible Dividend Growers to Buy Hand Over Fist in July 2024

These two top Canadian dividend stocks, with solid track records of raising dividends, look really attractive to buy right now…

Read more »

sale discount best price
Dividend Stocks

3 Discounted Stocks to Track in July 2024

Not all discounted stocks are worth buying right away. You have to watch many of them to recognize the trend…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

How to Use a TFSA to Earn $250 per Month in Tax-Free Passive Income

Looking for long-term growth in your TFSA? Here is exactly how to create the perfect passive income portfolio, and where…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

3 Reasons to Buy CAPREIT Stock Like There’s No Tomorrow

CAPREIT (TSX:CAR.UN) has proven its worth time and again. And after strengthening its portfolio, it could be time to pick…

Read more »