Enhance Your Portfolio’s Yield With These 3 Stocks

Are you looking for your next dividend stock? If so, IGM Financial Inc. (TSX:IGM), CT Real Estate Investment Trust (TSX:CRT.UN), and Pason Systems Inc. (TSX:PSI) should be on your buy list.

| More on:
The Motley Fool

One of the keys to success in investing is owning dividend-paying stocks, because as history shows, they outperform their non-dividend-paying counterparts over the long term. With this in mind, let’s take a look at three top dividend stocks from three different sectors, so you can determine which would fit best in your portfolio.

1. IGM Financial Inc.

IGM Financial Inc. (TSX:IGM) is one of the largest personal financial services companies in Canada with over $130 billion in assets under management. It pays a quarterly dividend of $0.5625 per share, or $2.25 per share annually, giving its stock a 6.9% yield at today’s levels.

Investors must also note that IGM Financial has raised its annual dividend payment for two consecutive years. However, I think its decreased amount of cash flow from operating activities net of commissions paid, including a 20.9% year-over-year decline to $456.3 million in the first nine months of fiscal 2015, may cause it to simply maintain its current rate in 2016.

2. CT Real Estate Investment Trust

CT Real Estate Investment Trust (TSX:CRT.UN) is one of the largest owners of commercial real estate in Canada with over 275 properties that total more than 20 million square feet. It pays a monthly distribution of $0.05667 per share, or $0.68 per share annually, giving its stock a 5.2% yield at today’s levels.

Investors must also note that CT has raised its annual dividend payment for two consecutive years, and its 2.6% increase in November 2015, which took effect this month, puts it on pace for 2016 to mark the third consecutive year with an increase.

3. Pason Systems Inc.

Pason Systems Inc. (TSX:PSI) is one of the world’s leading providers of specialized data management systems for drilling rigs. It pays a quarterly dividend of $0.17 per share, or $0.68 per share annually, giving its stock a 4.1% yield at today’s levels.

Investors must also note that Pason Systems has raised its annual dividend payment for 12 consecutive years, and although it generates ample free cash flow to support another increase in 2016, it may simply maintain its current rate until oil and natural gas prices recover to ensure the strength of its balance sheet.

Which of these high yielders belongs in your portfolio?

IGM Financial, CT REIT, and Pason Systems are three of the most attractive dividend-paying investment options in their respective industries. Foolish investors should take a closer look and strongly consider beginning to scale in to long-term positions in one of them today.

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. Pason Systems is a recommendation of Stock Advisor Canada.

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 »