Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

4 Top Dividend Stocks With Above 5% Yield

Stock MarketsNov 05, 2021 11:15
Saved. See Saved Items.
This article has already been saved in your Saved Items
4 Top Dividend Stocks With Above 5% Yield

Your portfolio can’t be complete without a few quality dividend stocks. Along with stable passive income, these stocks provide stability to your portfolio. Given their strong cash flows, healthy financial positions, and regular payouts, these companies are less susceptible to market volatilities. With these advantages, if you wish to add dividend stocks to your portfolio, here are the four top Canadian stocks with above 5% yields.

Suncor Energy Supported by higher commodity prices and increased production, Suncor Energy (TSX:SU)(NYSE:SU) posted an impressive third-quarter performance last week. Its operating profits came in at $1.04 billion compared to a net loss of $338 million in the previous year’s quarter. Its funds from operations rose 126.5% to $2.64 billion. Amid improving cash flows, its management has doubled its quarterly dividend to $0.42 per share, with its forward yield standing at 5.2%.

Meanwhile, the uptrend in Suncor Energy’s financials could continue amid rising oil demand. The company’s increased production, cost-reducing initiatives, lowering of debt levels, and share repurchase program could boost its financials in the coming quarters. So, I believe Suncor Energy is well-equipped to continue paying dividends at a healthier yield.

BCE I have chosen BCE (TSX:BCE)(NYSE:BCE), one of the three prominent players in the telecom space, as my second pick. The demand for stable and reliable internet service is rising amid growing digitization and remote working and learning culture. Meanwhile, the company is aggressively investing in strengthening its 5G and high-speed broadband services. With its liquidity standing at $5.3 billion, the company is well-equipped to fund its growth initiatives.

Meanwhile, BCE generates solid cash flows, thanks to its growing customer base and a higher percentage of recurring revenue. These stable cash flows have allowed the company to pay dividends at a healthier rate. Currently, it pays a quarterly dividend of $0.875 per share, with its forward yield standing at 5.43%.

NorthWest Healthcare With its forward yield standing at 5.93%, NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be an excellent buy for income-seeking investors. The company owns and manages high-defensive healthcare properties. Its long-term contracts, government-aided clients, and inflation-indexed rent deliver stable cash flows irrespective of the economic cycle. So, these solid cash flows have allowed the company to pay dividends at a healthier yield.

Meanwhile, NorthWest’s growth prospects look healthy, with $1 billion projects under development. Apart from organic growth, the company also focuses on strategic acquisitions to drive growth. It has acquired over $400 million assets this year while working on closing the Australian Unity Healthcare Property’s deal; that company owns and manages 62 healthcare facilities.

Keyera My final pick would be Keyera (TSX:KEY), a midstream energy company. Amid solid performance from its gathering and processing segment, its adjusted EBITDA increased by 9.2% in its recently reported third-quarter earnings. The improvement in drilling activities amid rising oil demand drove its plant volumes and utilization rate, increasing its financials.

With oil prices expected to continue trading higher, Keyera has increased its capital spending guidance for this and next year. It now intends to invest up to $490 million this year and $560 million in 2022. The majority of its spending would be on the construction and completion of the KAPS pipeline project. These investments could drive its financials in the coming quarters while allowing it to pay dividends at a healthier rate. Currently, the company pays a monthly dividend of $0.16, with its forward yield standing at 6.3%.

The post 4 Top Dividend Stocks With Above 5% Yield appeared first on The Motley Fool Canada.

The Motley Fool recommends KEYERA CORP and NORTHWEST HEALTHCARE PPTYS REIT UNITS. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

This Article Was First Published on The Motley Fool

4 Top Dividend Stocks With Above 5% Yield

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email