A juicy dividend yield is hard to pass up. It’s even better if the high-dividend return is coupled with other positives, like growth potential, consistent dividend increases, and payout history. Consistently good dividends also reflect a stable company that you can depend upon for steady payouts. Companies like these are perfect as stash-and-forget stocks.
Summit Industrial REIT, Canadian Utilities, and Exchange Income are three such companies. Buying stock in any of these three companies means that you are ready for the next few years. If you are planning on revamping your investment portfolio for 2020, these dividend stocks should be on your radar.
Light industrial REIT
Summit Industrial REIT focuses on light industrial properties. The REIT has reaped the benefit of choosing this particular market and has made a lot of money for its investors. The company has a market value of almost $13 per share, which is the result of steady growth of 107% in the last five years and explosive growth of 40% just this year.
But the growth isn’t the only good news for investors. The company pays out monthly dividends, and the current yield is 4.18%. It might not seem too glamorous compared to some other REITs, but Summit offers more stability. The current payout yield is just around 37%, and the five-year average is below 65%. Stability, high yield, and capital growth is a fantastic combination.
A long-reigning dividend king
With 46 years of increasing dividends under its belt, Canadian Utilities stands proud as a dividend noble. The company is comprised of more than $22 billion worth of assets and nearly 5,000 employees. It comes under the decades-old ATCO holding company. The company grew its market value by more than 25% this year, reaching the current share price of $39.7 at the time of writing.
Apart from growth and remarkable dividend history, the yield of Canadian Utilities is also worth noting — a beefy 4.27%. Canadian Utilities engages in a very stable and ever-green business, and looking at the company’s history of payouts, there is little chance of dividends going down anytime soon. This dependable history makes the company a rock-solid stock to anchor your investment portfolio.
A diversified company
Merely using the word diversified might undermine the variety of Exchange Income’s portfolio. The company is primarily engaged in air travel, covering the whole range from airlines to pilot training colleges. Now, the company has over 14 subsidiaries. This diversification provides a reliable shield in economically challenging times.
The company’s market value grew by almost 90% in the past five years. And just this year’s growth is close to 40%. When it comes to dividend, the company has increased payouts since 2004, making it a dividend royalty. The current yield is the best in the bunch by far, a mouth-watering 5.24%. The history and the returns may mark Exchange Income as the prime stock target for value investors.
Foolish takeaway
2020 is almost here, and if the current economic conditions are any indicator, it’s going to be a tough one. In this rough financial weather, it’s important to make investments that not only pay well but can be depended upon to keep paying well. You may want to prepare your portfolio and consider Summit REIT, Canadian Utilities, and Exchange Income to help solidify it.
