As income investors, we want to own stocks with high and reliable distributions and, after a thorough search of several industries, I’ve compiled a list of three great investment opportunities. Let’s take a quick look at each, so you can determine if you should buy one or more of them today.
1. Altagas Ltd.
Altagas Ltd. (TSX:ALA) is a North American diversified energy infrastructure company focused on building, owning, and operating assets to provide clean and affordable energy to its customers. Its assets include natural gas pipelines, processing plants, and storage facilities, renewable power-generation facilities, and regulated utilities, such as AltaGas Utilities, Pacific Northern Gas, Heritage Gas, and SEMCO Energy.
It pays a monthly dividend of $0.165 per share, or $1.98 per share annually, giving its stock a yield of about 6.3% at current levels.
It’s also very important to make the following two notes about its dividend.
First, its two dividend hikes since the start of 2015, including its 8.5% hike in May 2015 and its 3.1% hike in October 2015, 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 target payout range of 40-50% of its normalized funds from operations.
2. Boston Pizza Royalties Income Fund
Boston Pizza Royalties Income Fund (TSX:BPF.UN) owns the trademarks and other intellectual properties associated with the Boston Pizza brand in Canada, and it licenses these properties for use in operating and franchising casual dining restaurants for a royalty of 5.5% of sales. As of June 15, 2016, there are 372 restaurants in its royalty pool.
It pays a monthly distribution of $0.115 per share, or $1.38 per share annually, giving its stock a yield of about 6.8% at current levels.
It’s also very important to make the following two notes about its distribution.
First, its two distribution hikes since the start of 2015, including its 6.2% hike in April 2015 and its 6.2% hike in January of this year, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual distribution.
Second, it has a payout target of 100% of its distributable cash.
3. Agellan Commercial Real Estate Investment Trust
Agellan Commercial Real Estate Invtmt TR (TSX:ACR.UN) is a North American REIT with ownership interests in 31 industrial, office, and retail properties located in the United States and Canada that total approximately 4.7 million square feet.
It pays a monthly distribution of $0.06458 per share, or $0.775 per share annually, giving its stock a yield of about 7.4% at current levels.
It’s also important to note that the company has maintained its current annual distribution rate since it went public in 2013, and its strong generation of adjusted funds from operations could allow it to continue to do so going forward or allow it to announce a slight hike in the near future.
