There’s no shortage of great dividend stocks to buy on the market right now. In fact, some of those great dividend stocks boast insane, if not lucrative, yields.
Here’s a look at some of those lucrative yields investors can pick up as we move into February.
Let’s start with the obvious
it would be nearly impossible to compile a list of dividend stocks with lucrative yields without mentioning at least one of Canada’s big banks. The big bank that investors should consider right now is Bank of Nova Scotia (TSX:BNS).
Scotiabank isn’t the largest or most well-known of the big banks. But it does boast significant long-term growth potential and offers a lucrative yield right now.
That yield currently sits at an insane 6.74%, making it one of the better-paying dividends on the market. It’s also the highest yield among its big bank peers right now. To put that potential payout into context, let’s consider a $30,000 investment.
For that initial outlay (which is part of a well-diversified portfolio), investors can expect to earn just over $2,000. Investors who are not ready to draw on that income can reinvest it and allow that eventual income to grow further.
Speaking of growth, Scotiabank, which is already known as Canada’s most international bank, is now prioritizing North American markets over its Latin American ventures. Specifically, apart from Canada, the bank is targeting growth in the U.S., Mexico, and the Caribbean.
Telecoms have lucrative yields right now
Telecoms are incredibly defensive investments. They provide increasingly necessary services that cater to large swaths of the population. Those services are becoming more sticky too, with brand loyalties and service bundling taking place.
That’s part of the reason why Telus reported record-breaking growth in the most recent quarter. Specifically, the telecom added 160,000 net additions to its mobile segment alone.
Despite that appeal, stock prices of telecoms have dropped over the past year, as interest rates soared, leading to market volatility. Specifically, Telus (TSX:T) has dropped a whopping 22% over the past two years.
And while the stock price has dropped, Telus is now one of the lucrative yields available to investors. As of the time of writing, the yield works out to an insane 6.20%. Even better, Telus follows a semi-annual cadence of providing investors with generous upticks to that dividend.
Overall, the company has reported annual or better increases to that dividend going back nearly three decades without fail. That fact alone makes it one of the most lucrative yields to buy right now.
Make room for the king
Canadian Utilities (TSX:CU) is the third dividend stock with lucrative yields that investors should be aware of. Canadian Utilities generates a stable and recurring revenue stream thanks to its regulated business. This allows the company to both invest in growth and pay out a generous dividend.
As of the time of writing, Canadian Utilities pays out a juicy 5.75% yield, which is higher than many of its utility stock peers. Using that same $30,000 example from above, investors can expect to generate an income of just over $1,750.
But perhaps the best part is that Canadian Utilities is one of only two Dividend Kings in Canada. In other words, the company has provided annual increases to that dividend for over 50 consecutive years.
For investors with long-term horizons, the prospect of decades of annual increases stemming from a regulated, reliable business is too hard to ignore.
And thanks to those rising interest rates, the stock trades down a whopping 16% over the trailing 12-month period. This makes it an excellent time to buy a great stock.
There are plenty of lucrative yields on the market
Scotiabank, Telus and Canadian Utilities are just three of a basket of stocks that offer lucrative yields right now. But what sets these three apart from others is the defensive appeal combined with long-term growth potential.
In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.