If you’re a dividend investor with cash on hand that you’re ready to put to use, then this article is for you. I’ve scoured the market and selected three high-quality dividend stocks with yields of 4-6%, so let’s take a quick look at each to determine if you should buy one or more of them today.
1. Algonquin Power & Utilities Corp.
Algonquin Power & Utilities Corp. (TSX:AQN) is one of North America’s largest owners and operators of green and clean energy assets, including hydroelectric, wind, thermal, and solar power generation facilities. It also owns a sustainable utility distribution business, which distributes water, electricity, and natural gas across 11 states in the U.S.
It pays a quarterly dividend of US$0.1059 per share, or US$0.4235 per share annually, which gives its stock a yield of approximately 4.7% at today’s levels.
It’s also important to make two notes about its dividend.
First, the company’s two dividends hikes since the start of 2015, including its 10% hike in May 2015 and its 10% hike last month, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment.
Second, it has a long-term dividend-per-common-share growth target of 10% annually.
2. Brookfield Property Partners LP
Brookfield Property Partners LP (TSX:BPY.UN)(NYSE:BPY) is a global commercial property company that owns, operates, and invests in office, retail, multi-family, industrial, hotel, and triple net lease assets. Its portfolio currently includes ownership interests in more than 150 “premier” office properties and more than 120 “best-in-class” retail malls around the world.
It pays a quarterly distribution of US$0.28 per share, or US$1.12 per share annually, which gives its stock a yield of approximately 4.5% at today’s levels.
It’s also important to make two notes about its distribution.
First, the company’s 5.7% distribution hike in February has it on pace for 2016 to mark the second consecutive year in which it has raised its annual distribution.
Second, it has a long-term distribution-growth target of 5-8% annually.
3. Sienna Senior Living Inc.
Sienna Senior Living Inc. (TSX:SIA) is one of the Canada’s largest owners of senior housing communities, and it’s the largest licensed long-term care provider in Ontario. It owns and operates 35 long-term care facilities and 11 retirement communities across Ontario and British Columbia that can serve nearly 7,000 residents.
It pays a monthly dividend of $0.075 per share, or $0.90 per share annually, which gives its stock a yield of approximately 5.2% at today’s levels.
It’s also important to make two notes about its dividend.
First, the company has maintained its current annual dividend rate since 2013.
Second, I think its very strong growth of adjusted funds from operations (AFFO), including its 10.7% year-over-year increase to $0.361 per share in the first quarter of 2016, and its very low payout ratio, including just 62.3% of its AFFO in the first quarter, could allow it to raise its dividend before the end of the year.
