3 Dividend Stocks With Yields up to 8.9% to Buy Today

Does your portfolio need a dividend stock? If so, Torstar Corporation (TSX:TS.B), TransAlta Corporation (TSX:TA)(NYSE:TAC), and Algonquin Power & Utilities Corp. (TSX:AQN) could be what you need.

| More on:
The Motley Fool

Whether you just opened your first brokerage account or have been investing for years, you must own at least one dividend-paying stock because they far outperform non-dividend-paying stocks over the long term. With this in mind, let’s take a look at three stocks with yields up to 8.9% that you should consider buying today.

1. Torstar Corporation: 8.9% yield

Torstar Corporation (TSX:TS.B) is one of the largest media companies in Canada, publishing books, newspapers, and digital media. It pays a quarterly dividend of $0.13125 per share, or $0.525 per share annually, giving its stock an 8.9% yield at today’s levels. The company has not increased its dividend since May 2012, but it ended the first quarter of fiscal 2015 with $231.2 million in cash, an increase of 1,137.6% from the year-ago period, so I think it could announce an increase or a special dividend in the very near future.

2. TransAlta Corporation: 7.3% yield

TransAlta Corporation (TSX:TA)(NYSE:TAC) is one of the largest power generators and wholesale marketers of electricity in North America and Australia. It pays a quarterly dividend of $0.18 per share, or $0.72 per share annually, which gives its stock a 7.3% yield at current levels. It is also important to note that the company lowered its dividend by 37.9% in February 2014 as a result of lower power prices and unplanned outages, but I think a strong operational performance in 2015 could allow it to increase its dividend back to the previous rate.

3. Algonquin Power & Utilities Corp.: 4.05% yield

Algonquin Power & Utilities Corp. (TSX:AQN) is one of the largest operators of regulated and non-regulated utilities in North America. It pays a quarterly dividend of $0.09625 per share, or $0.385 per share annually, giving its stock a 4.05% yield at today’s levels. The company has also increased its annual dividend payment for six consecutive years, and it has a long-term goal of increasing its dividend by 10% annually, making it one of the top dividend-growth plays in the market today.

Which of these top dividend stocks belong in your portfolio?

Torstar, TransAlta, and Algonquin Power are three of the top dividend stocks in the market today. All long-term investors should take a closer look and strongly consider establishing positions in one or more of them.

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 Joseph Solitro has no position in any stocks mentioned.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »