There’s no shortage of great, high-yield dividend stocks on the market right now. Some of those stocks are on sale right now and have insane long-term appeal for both new investors and seasoned investors with longer-term timelines.
Here’s a look at some of those high-yield dividend stocks to purchase today.
Source: Getty Images
Do you want a 10% dividend?
This first pick will cause some existing investors temporary grief. BCE (TSX: BCE) is one of the largest telecoms in Canada, and despite the defensive appeal of telecoms, BCE’s stock has plummeted 26% year to date. That includes dropping nearly 15% just this week.
Part of the reason for that drop can be traced back to the impact of rising interest rates coupled with BCE’s excessive debt. To remedy that issue, BCE announced a series of deep cuts to its business.
Adding to those woes, BCE recently sold off its massive $4.2 billion deal from its share in Maple Leaf Sports & Entertainment. The company then proceeded to acquire U.S.-based internet provider Ziply Fiber. This led to some confusion, including the company’s decision to pause dividend growth.
This led to a nearly 10% single-day drop in the stock price this week. As a result, the dividend has swelled to 9.6%.
As with any sign of volatility, investors with longer timelines need to stay focused on that longer term. Even if dividend growth is halted for several years, BCE remains one of the better-paying options on the market.
More importantly, the Ziply deal has the potential to fuel growth for the company over several years. As an aside, investors should note that BCE is also the second of Canada’s big telecoms to pause annual increases in recent years.
In other words, BCE is undergoing a change that will take several years to come to fruition. And long-term investors can still purchase a small position in BCE now at a hefty discount, enjoy that dividend, and wait on the expected rise in the stock price.
Energy in all its forms leads to dividends
It would be nearly impossible to highlight a shortlist of high-yield dividend stocks without mentioning Enbridge (TSX: ENB).
For those unaware of the stock, Enbridge is an energy infrastructure behemoth. The company operates across several verticals, including utilities, pipelines and renewable energy.
Each of those segments generates a growing source of revenue that leaves room for both investment into growth as well as paying out a stellar dividend. As of the time of writing, that dividend works out to a tasty 6.32%.
Also worth noting is that those segments all boast some defensive appeal and that Enbridge has provided annual bumps to that dividend for three decades without fail.
In other words, Enbridge is a great buy-and-forget option for any portfolio that caters to both defensive and growth-oriented investors alike.
Big income growth comes standard
One final pick for investors seeking high-yield dividend stocks to invest in is Bank of Nova Scotia (TSX: BNS). Scotiabank is one of Canada’s big bank stocks and is often regarded as Canada’s most international bank.
Scotiabank benefits from both its domestic and international units. At home, the bank enjoys a mature, well-regulated and profitable segment that generates a predictable revenue stream.
Internationally, the bank is more focused on establishing itself in foreign markets to drive growth. This has included Latin American markets as well as the U.S. in recent years.
Both segments provide the bank with ample revenue to invest further in growth and pay out a very handsome dividend.
As of the time of writing, Scotiabank pays out a very appetizing 5.71% yield, making it one of the better-paying options across the big banks. And like Enbridge, Scotiabank has an established cadence of providing investors with juicy annual upticks to that dividend.
Will you buy high-yield dividend stocks for your portfolio?
No stock is without some risk, and that includes the trio of high-yield dividend stocks mentioned above. That’s why the importance of diversification cannot be understated enough.
In my opinion, a small position in one or all of the three stocks mentioned above is warranted as part of a larger, well-diversified portfolio.
