5 high dividend stocks paying a dividend of 4.5% or greater. I currently own positions in all 5 stocks.
High Dividend Stocks are a great way to boost dividend income in the early going.
Of course, high dividend stocks are not the only qualification. As Bob from Sure Dividend recently put it in his excellent guest post on dividend kings, the main qualification should be owning high quality stocks that you plan to hold for the long term.
In addition, you must manage risk and diversify, so that your portfolio has balance and to be prepared for various stock market conditions.
But for the sake of this post, we will be focusing on 5 high dividend stocks that pay a dividend yield greater than 4.5%. We will be discussing Enbridge (ENB), Suncor Energy (SU), AT&T (T), Altria Group (MO), and Canadian Imperial Bank of Commerce (CM).
In this dividend investor’s opinion, these are high quality dividend stocks with competitive advantages that also happen to offer above average dividend yields.
5 High Dividend Stocks:
Enbridge (ENB)
Enbridge delivers energy to North America in order to heat homes, to keep lights on, and to keep people mobile and connected. They operate a network of businesses that include crude oil, liquids and natural gas pipelines, regulated natural gas distribution utilities and renewable power generation.
Sounds like a sustainable business right? Well, that’s exactly why Enbridge happens to be my largest position.
They are also very kind to shareholders, as they currently offer a 6.37% dividend yield. They are also committed to increasing dividends and have been increasing it regularly for years.
Although I prefer regularly investing over trying to find the bottom of a stock, I do believe the price is a little high right now. At 19.8 times earnings, I would prefer to buy shares of ENB in the $44 to $47 per share range or below. Most of the shares I own were bought below that range. However, it’s a great stock to keep investing in and take advantage of their DRIP.
Suncor Energy (SU)
Suncor Energy is a Canada based integrated energy company. They develop petroleum resource basins and they also market third-party petroleum products.
Although my Suncor position is small, I still consider myself an owner each time I pass by a Petro Canada.
As for the dividend, Suncor Energy currently pays shareholders a 4.97% dividend yield. Although their income and share price relies heavily on the price of oil, they have still managed to increase their dividend.
At the current price of $37.45 with a price to earnings ratio of 12, I would currently be a buyer for the long term. In fact, I may add to my position this month.
AT&T (T)
“AT&T Inc. is a holding company. The Company is a provider of telecommunications, media and technology services globally.”
At this point, I view telecommunications companies in the same way I view utilities—they both provide consistent cash flow from essential services.
I have some experience on the frontline in the Canadian Telecommunications industry, and I’ve always been interested in new phone technology, so I have a natural interest and somewhat of an idea of how the business operates.
Furthermore, AT&T currently pays a 5.73% dividend yield. Even though the growth of this industry has slowed down, it’s still nice to own a chunk of the slow but consistent dividend income that is to come.
At the current p/e ratio of 19.6 times earnings, I would prefer to pick up shares at a lower price. More in the $30 to $35 range, but less than $30 is ideal.
Altria Group Inc (MO)
“Altria Group, Inc. is a holding company. The Company’s segments include smokeable products, smokeless products and wine.”
Aside from the dividend payment, the main reason to like this company is their portfolio of strong brands. But I also like that it allows me to invest in more speculative industries while still getting paid a dividend. For example, Altria Group Inc has stakes in Cronos Group and Juul.
In regards to the dividend, Altria Group Inc’s current dividend yield is 8.15%. I mean, an 8.15% yield could provide a serious boost to overall dividend income. However, it does make me hesitant because high yields can sometimes be a warning sign. But if you consider that the stock has been hit by the recent vape controversy, it could be a great opportunity to start a small position to boost your dividend income.
Canadian Imperial Bank of Commerce (CM)
Canadian Imperial Bank of Commerce (CIBC) is a global financial institution.
To be straight up with you, I am quite familiar with this particular stock because I used to work for CIBC. I worked there for nearly 3 years following my year off, but my time with CIBC ended back in 2019. I also worked for Royal Bank of Canada for more than 3.5 years, for the record. Hence why these are both two of my favourite of the big 5 Canadian banks.
As for the dividend, it is currently sitting at 5.5%, and as most Canadian banks do, they typically increase the dividend twice annually.
In my humble opinion, shares of CM are a buy considering the p/e of 9.5 and the current yield of 5.5%. The shares have been hovering around their current price of $105.99 for the past few years now. I estimate that CM will be a quality high dividend stock for the long term.
Concluding Thoughts on High Dividend Stocks
Considering that 40% of total market returns have come from dividends since 1940, high dividend stocks can be a great equalizer during volatile market conditions or market corrections.
High dividend stocks provide consistent cash flow and a boost to your portfolio. Moreover, high yield dividend stocks provide more money to reinvest.
With the end of this epic bull market run we have all been witnessing in sight, high dividend stocks could be the balance your portfolio will need during a recession.
But please keep in mind that a high yield could be a warning sign for a company that is failing. It is important to focus on high quality dividend stocks for the long term.
In conclusion, these are 5 high paying dividend stocks paying 4.5% or more. I currently own positions in all 5 stocks that I plan to hold for the long term.
If you’re interested in building your own dividend income stream or buying the above mentioned stocks, check out this post on how to get started.
However, I would highly recommend you do your own research and consult a licensed professional before investing on your own.
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisem*nts by Google Adsense. This post also contains internal links, affiliate links to Amazon, Bluehost, and Questrade, links to external sites, and links to RTC social media accounts.
Start earning your own passive income through dividend investing with RTC’s link below ($50 in free trades):
Connect with RTC
Twitter:@Reversethecrush
Pinterest:@reversethecrushblog
Instagram:@reversethecrush_
Facebook:@reversethecrushblog
Email:graham@reversethecrush.com
