Income-seeking investors often take joy in discovering and earning dividend income. That feeling is even more satisfying when those dividends are from stocks paying over 5%.
Fortunately, the market gives us plenty of options to choose from, including many of which are stocks paying over 5%.
Here’s a look at four of those gems to buy for your portfolio
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Option 1- Bank of Nova Scotia
Canada’s big banks are always great options to augment any portfolio. They can provide stable, growing revenue from the domestic market as well as growth from international markets.
Throw in a juicy dividend, and you have some of the best stocks paying over 5% for your portfolio.
Bank of Nova Scotia (TSX:BNS) touches on many of those points. Specifically, the bank offers a strong domestic portfolio and is Canada’s most international bank.
That international presence is a growth driver for the bank, which has shifted recently from Latin American markets to more mature markets in North America.
In terms of income, Bank of Nova Scotia boasts a juicy quarterly dividend. As of the time of writing, Scotiabank boasts a juicy 5.9% yield.
Scotiabank has been paying out that dividend for nearly two centuries without fail. The bank also has an established cadence of providing investors with annual upticks to that dividend.
Option 2 – Enbridge
Enbridge (TSX:ENB) is one of those stocks that everyone knows about, but few realize just how good it is for your portfolio.
Enbridge is an energy infrastructure giant that boasts a giant pipeline network which is one of the most defensive energy sectors on the market. The company also owns a growing renewable energy portfolio and operates a natural gas utility business.
Collectively, those segments provide ample revenue for Enbridge to invest in growth initiatives (including its multi-billion dollar backlog). Additionally, ENB stock pays one of the best dividends on the market.
As of the time of writing, that dividend carries a yield of 6.1%. Not only does this make Enbridge one of the stocks paying over 5%, but also one of the most defensive, diversified picks on the market.
Finally, like Scotiabank, Enbridge has an established cadence of providing annual bumps to that dividend. Enbridge has provided investors with an annual increase for three decades without fail.
Option 3 – Slate Grocery REIT
Slate Grocery REIT (TSX:SGR.UN) is a grocery-anchored REIT that boasts a portfolio of over 110 properties in 23 U.S. states.
Grocery stores are incredibly defensive investments owing to the sheer necessity of what they provide. They also serve as anchor tenants to shopping centres, drawing in additional traffic.
As an income producer, Slate handily meets the requirement of being one of the stocks paying out over 5%.
In fact, as of the time of writing, Slate pays out an incredible 8.2% yield. Prospective investors should also note that, unlike the other options on this list, Slate pays that distribution on a monthly cadence.
That may be reason enough for some income-seeking investors to consider buying Slate Grocery today.
Option 4 – Telus
Canada’s telecoms represent another option for investors seeking out stocks paying out over 5%. In the case of Telus (TSX:T), the company offers a quarterly dividend that pays out a handsome 7.6%.
Not only does this make Telus one of the best dividends on the market, but thanks to its reliable business model, it’s also one of the most defensive.
That business model includes offering subscriber-based services to customers across the country across multiple segments. Those segments include wireless, wireline, TV, and internet.
One key difference that Telus has over its big telecom peers is the lack of a media segment. Instead, Telus has diversified in recent years by offering a suite of digital services. Those services are focused on certain niche markets, such as healthcare and agriculture.
More importantly, the digital services segment provides an additional growing source of revenue for the company.
The 4 Stocks paying over 5%
No stock, even the most defensive, is without some risk. Fortunately, the four stocks mentioned above can provide some defensive appeal in addition to juicy yields.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
