3 Dividend Aristocrats With Fantastic Yields

Dividend aristocrats Canadian Utilities Limited (TSX:CU), Laurentian Bank of Canada (TSX:LB), and Cineplex Inc. (TSX:CGX) can boost any stock portfolio with fantastic dividend yields.

| More on:

In times of uncertainty, you can seek refuge in dividend aristocrats. With volatility gripping the market again, Canadian Utilities (TSX:CU), Laurentian (TSX:LB), and Cineplex (TSX:CGX) should have a place in your portfolio. The stocks aren’t just dividend aristocrats – they’re dividend rock stars.

Not only will your money will be safeguarded against market volatility, but you’ll also get fantastic yields of up to 7%. There’s no need to fear recession, either.

Ever dependable

Canadian Utilities hold the longest record of consecutive dividend increases on the TSX. The company has increased its dividend every year for the past 47 years.

Earnings of this utility company are never in doubt, as most of them are derived from the very stable regulated market. The recurring revenue ensures dividend stability.

The 17.75% increase in adjusted net earnings in Q2 2019 versus Q2 2018 is testimony to the company’s slow but steady growth.

On an accumulative basis, the utility company’s rate base has increased by 45% since 2013, and it is expected to continue growing at a pace of around 4-5% annually.

So you can rely on this defensive stock during drawn-out uncertainty. The growth forecast for Canadian Utilities is a modest but stable 10% until 2020, which is sustainable with the chance of a slight increase beyond next year. The company has also expanded in Mexico, which could boost long-term growth.

The current dividend yield of 4.5% is not too bad either. As such, Canadian Utilities can be your income provider for years on end.

Small but prodigious bank

Laurentian Bank is another dividend aristocrat worthy of your consideration. This $1.9 billion financial institution bank is not among the Big Five banks in Canada. However, the yields of the Big Five pale in comparison to Laurentian’s 5.85% dividend.

Over the past 10 years, the bank has been delivering consistent income to dividend investors.  The payout ratio of 61.58% shows that dividends are sufficiently covered by the bank’s earnings.

Furthermore, the bank provides banking and financial services to small and medium-sized enterprises. This captured market drives the growth of Laurentian Bank. By 2022, the bank’s profitability could be on a par with that of the major Canadian banks.

Blockbuster returns

In the midst of declining number of moviegoers, Cineplex is turning in box office numbers. This movie and entertainment company recorded its highest ever second-quarter revenue. Cineplex’s box office revenue per person (BPP) increased by $2.1 million compared to the same period last year.

The BPP growth made up for the decline in theater attendance. But Cineplex sees the 10% increase in box office sales as a prelude to a better third-quarter and the rest of 2019.

There will be a slew of powerful movie titles, from sequels to first time stories, during the next two quarters.

Cineplex is no longer concentrated in movies. The company expanded with the opening of “Rec Rooms” which are already attracting a broader audience than the regular moviegoers.

Cineplex is one of the highest-paying dividend stocks. The 7.0% dividend yield is top-drawer. This could increase as the company’s diversification strategy progresses.

Accelerate your earning power

Canadian Utilities, Laurentian Bank, and Cineplex are the dividend aristocrats that can turn your average portfolio into one that would enhance your earning power. With market volatility heightening, you could look at adding these into your portfolio for the long term.

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 Christopher Liew 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 »