3 Dividend Stocks Yielding up to 6.4% That I’d Buy Right Now

Rogers Sugar Inc (TSX:RSI) and these two other stocks can provide stability and a stream of dividend income for your portfolio.

| More on:

Dividend stocks are a great way for investors to accumulate some recurring cash flow for their portfolios. However, it’s not just the dividend yield you should consider, but also the company’s long-term stability. Stocks that are very volatile can present a lot of uncertainty, and that means that the reliability of their payouts may also be questionable. For that reason, I’ve focused on three stocks below that pay up 6.4% in dividends and that look to be safe buys for years to come.

Rogers Sugar (TSX:RSI) currently pays its shareholders a dividend of 6.4%, and while that may seem high, it’s also inflated due to the decline the stock has been on. Year to date, the stock is down more than 11%, but things have turned recently, and it may be a good time for investors to buy before the yield shrinks back down.

What makes Rogers Sugar a good long-term buy is its necessity in our day-to-day lives, and as much as people may want to cut down on their sugar intake, the demand is still significant. There’s no more proof of that than in the company’s financials: last year, Rogers saw its top line grow by 21%, and since 2015 sales have risen by 26%. The company has also consistently posted a profit over each of the past five years.

Trading at a multiple of 15 times earnings and around 1.7 times book value, Rogers also provides investors with a lot of value for their money and can be a great option for frugal investors as well.

Dorel Industries (TSX:DII.B) is a great option for investors unsure of what to invest in, as the company is well-diversified and in a number of different industries. From strollers and products for children to bicycles and furniture, Dorel has many different avenues to grow, and that makes the stock a very appealing buy to hold for the long term. It also has operations all over the world, ensuring that it doesn’t have to be overly dependent on any one market or region.

The share price has unfortunately crashed this year, declining more than 20% year to date as the liquidation of Toys “R” Us has made a big dent in Dorel’s financials, as not only did it lead to a write-down in receivables, but sales were down as well. However, this is likely to be a short-term issue as Dorel will find other stores to sell to, as the demand for children’s products isn’t going anywhere anytime soon.

Dorel currently pays investor a yield of 6.3%, and with a price-to-book ratio of just 0.7, it’s a bargain buy.

Laurentian Bank (TSX:LB) is another stock that has struggled this year, as it is down 25% since the start of 2018. While the bank has provided stability to investors, a lack of growth has left potential buyers underwhelmed. And although it is not one of the top bank stocks, Laurentian offers investors much more value, trading at just eight times earnings, and it’s also currently below book value.

The stock also pays a dividend of 5.9%, which is higher than what you can get with the Big Five.

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 David Jagielski has no position in any of the 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 »