Canada Markets closed

3 Dividend Stocks Yielding at Least 8% That Will Reward You for Your Patience

Jason Phillips

Sometimes you just have to be patient, and now seems like one of those times, at least as far as the stock market is concerned.

2018 ended with more of a whimper than a bang, and while the TSX Index is up solidly to start the new year, that momentum has begun to fade over the past few days of trading. But that’s just the nature of markets.

Investors should keep in mind the TSX is up over 81% since the spring of 2009 without much in the way of any interruption, so maybe we really shouldn’t be too surprised if the market has to deal with a minor hiccup every now and again.

However, the good news is that the following three stocks are paying investors handsomely in return for exercising just a little bit of patience.

All three stocks to make this list yield a minimum of 8% annually with the highest paying upwards of 11% in dividends per annum.

Slate Office REIT (TSX:SOT.UN)

On January 15, Slate Office REIT announced its monthly distribution of $0.0625, which will be paid out on February 15, 2019, to the shareholders of record as of January 31.

Based on Tuesday’s closing price of $6.54, that means Slate’s shareholders are the beneficiaries of a very rewarding 11.5% dividend yield.

When you add in the fact that Slate shares are trading at a discount to their clean book value and also trade at a very cheap forward price-to-earnings ratio of just 5.5 times, this is a tough play for value investors to turn down.

Gluskin Sheff + Associates (TSX:GS)

Gluskin Sheff & Associates is one of Canada’s pre-eminent asset management companies, but, unfortunately, the company appears to have fallen on hard times over the past couple of years, as active managers broadly have failed to match the performance of several low-cost ETFs.

But that doesn’t mean that active management is dead. In fact, as far as I’m concerned, I believe that the prospect of active portfolio management going the way of the dodo bird is actually a far stretch from becoming a reality anytime soon.

Markets and industries tend to go through cycles, and in this respect, I don’t believe Gluskin Sheff is any different.

Personally, I’m expecting that it’s a matter of when rather than if that this firm will make a strong recovery. In the meantime, the 10.3% annual dividend is certainly nothing to sneeze at.

TransAlta Renewables (TSX:RNW)

TransAlta is a formidable utility-like investment with the company offering more than 100 years of experience developing, owning, and operating renewable power-generation facilities.

TransAlta’s portfolio includes wind, hydro, and gas renewable power assets, and it’s a portfolio that has been designed with the intent to generate stable cash flows that can be used to reinvest in the business while providing predictable returns for the company’s shareholders.

TransAlta recently announced its March monthly dividend for the amount of $0.07833 payable to shareholders of record on March 15, making the stock’s ex-dividend date one day earlier, March 14.

More reading

Fool contributor Jason Phillips has no position in any of the stocks mentioned.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019