You Should Diversify With These Dividend Stocks

First National Financial, Laurentian Bank of Canada, and TransCanada all share one thing in common. They are on our list of top paying dividend stocks which have helped grow my portfolio income over the past couple of months. A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.

First National Financial Corporation (TSX:FN)

First National Financial Corporation, through its subsidiaries, originates, underwrites, and services residential and commercial mortgages in Canada. The company employs 937 people and with the stock’s market cap sitting at CAD CA$1.70B, it comes under the small-cap category.

FN has an alluring dividend yield of 6.57% and is currently distributing 53.96% of profits to shareholders . FN has increased its dividend from CA$1.25 to CA$1.85 over the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. First National Financial’s earnings per share growth of 4.97% outpaced the ca mortgage industry’s 3.45% average growth rate over the last year. More on First National Financial here.

TSX:FN Historical Dividend Yield Jun 12th 18

Laurentian Bank of Canada (TSX:LB)

Laurentian Bank of Canada, together with its subsidiaries, provides banking services to individuals, small and medium-sized enterprises, and independent advisors in Canada and the United States. Founded in 1846, and now run by François Desjardins, the company currently employs 3,834 people and with the company’s market cap sitting at CAD CA$1.90B, it falls under the small-cap category.

LB has a enticing dividend yield of 5.67% and their payout ratio stands at 44.37% , with the expected payout in three years being 45.08%. The company’s dividends per share have risen from CA$1.28 to CA$2.56 over the last 10 years. The company has been a reliable payer too, not missing a payment during this time. Interested in Laurentian Bank of Canada? Find out more here.

TSX:LB Historical Dividend Yield Jun 12th 18

TransCanada Corporation (TSX:TRP)

TransCanada Corporation operates as an energy infrastructure company in North America. Formed in 1951, and now led by CEO Russell Girling, the company currently employs 6,779 people and with the company’s market capitalisation at CAD CA$48.32B, we can put it in the large-cap category.

TRP has a enticing dividend yield of 5.01% and is distributing 72.83% of earnings as dividends , with analysts expecting the payout in three years to be 85.58%. TRP’s DPS have risen to CA$2.76 from CA$1.44 over a 10 year period. Much to the delight of shareholders, the company has not missed a payment during this time. More on TransCanada here.

TSX:TRP Historical Dividend Yield Jun 12th 18

For more solid dividend paying companies to add to your portfolio, explore this interactive list of top dividend payers.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.