Top 3 Dividend Stocks Yielding Over 7% to Buy in June 2024

Are you looking for the best of the best dividend stocks? These three are the ones that belong on your watchlist in June and beyond.

| More on:
Person holds banknotes of Canadian dollars

Source: Getty Images

Are you looking for passive income? Dividend stocks can be an excellent choice. In fact, right now is perhaps the perfect time to buy with the market recovering. Lower interest rates can mean more earnings. And more earnings can mean more dividend increases.

But when it comes to the best of the best, there are three that investors should consider before any other in June 2024. So, let’s get right into it.

SmartCentres REIT

With a dividend yield of 8.47%, SmartCentres REIT (TSX:SRU.UN) certainly belongs in an investor portfolio — especially while trading at 12.23 times earnings. The real estate investment trust (REIT) is a strong investment due to its stable income from a well-diversified portfolio of retail properties, including major tenants like Walmart.

Historically, SmartCentres has shown resilience through economic cycles, maintaining a high occupancy rate and consistent dividend payouts. The trust’s strategic focus on urban development projects, such as mixed-use properties, positions it well for future growth. The current dividend yield reflects its ability to generate substantial income, making it an attractive option for income-focused investors.

Furthermore, the dividend stock’s earnings are robust, supported by a stable and high occupancy rate of over 97%. In its most recent quarterly report, the REIT reported a net income of $104.7 million, a significant increase from the previous year. This consistent performance is driven by its diversified portfolio, anchored by Walmart, which ensures steady rental income. 

With ongoing urban development projects, SmartCentres is expected to enhance its earnings capacity, supporting future dividend growth. The company’s funds from operations (FFO) per unit, a key measure of REIT performance, has shown steady growth, indicating a strong ability to sustain and grow dividends.

Algonquin Power

Another dividend stock that certainly belongs in your long-term portfolio is Algonquin Power & Utilities (TSX:AQN). With a dividend yield of 7.49%, it certainly is far and away above that 7% mark.

AQN stock operates in the stable utility sector, providing essential services which generate predictable revenue streams. Historically, Algonquin has achieved steady growth through both organic expansion and strategic acquisitions. The current dividend yield is backed by the company’s robust financial health and operational efficiency. 

Looking forward, Algonquin’s commitment to renewable energy projects and infrastructure development positions it well to benefit from the increasing demand for clean energy solutions. This makes Algonquin an attractive option for investors seeking reliable and growing dividends.

The dividend stock has demonstrated strong financial performance, with a recent quarterly revenue of $835.6 million and an adjusted net earnings increase of 10% year over year. The company’s diversified portfolio in regulated and non-regulated businesses ensures stable and growing earnings. Algonquin’s ongoing investments in renewable energy and infrastructure projects should drive future earnings growth. 

The company’s solid earnings performance supports its dividend payout, and the strategic focus on expanding its clean energy footprint provides a favourable outlook for continued dividend growth. The dividend stock is well-positioned to sustain and grow its dividends with a payout ratio that allows for reinvestment in growth opportunities.

NorthWest REIT

Finally, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a rebounding dividend stock that deserves your attention. It holds a 7.5% dividend yield as of writing, making it a top contender.

The dividend stock focuses on healthcare real estate, a sector known for its stability and growth potential. NorthWest reported a solid financial performance with a stable revenue stream from long-term leases with healthcare operators. Its strategic acquisitions and international diversification enhance earnings growth potential. 

The REIT’s low-risk business model and consistent cash flows support its ability to maintain and grow its dividends, making it a strong choice for dividend investors looking for high yields. Its strategic acquisitions and international diversification enhance earnings growth potential.

In its latest financial report, NorthWest reported net operating income of $207.3 million. Strong occupancy rates and lease renewals drove these numbers along. The REIT’s low-risk business model and consistent cash flows support its ability to maintain and grow its dividends, making it a strong choice for dividend investors looking for high yields. Altogether, combined with these other dividend stocks, you’ll have a top portfolio in June.

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 Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust and Walmart. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy.

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Dividend Stocks

2 TSX Stocks Poised to Have a Big Summer

Restaurant Brands International (TSX:QSR) stock and another darling that could be too cheap to ignore this summer.

Read more »

Dividend Stocks

Forget Fortis Stock: Buy This Magnificent Utilities Stock Instead

Looking for high dividends and returns? Then I'm sorry, but Fortis (TSX:FTS) stock probably isn't for you.

Read more »

Increasing yield
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye on

Have these top TSX dividend stocks finally bottomed?

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Any near-term decline in these two top Canadian dividend stocks will make them look even more attractive.

Read more »