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:

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.

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »