Yahoo Finance My Top 5 Ultra-High-Yield Dividend Stocks to Buy in May
Written by Nicholas Dobroruka at The Motley Fool Canada
There’s never a bad time to think about creating an additional stream of income. Fortunately, the TSX is loaded with high-quality dividend stocks to help Canadians do exactly that.
Whether you’re looking for an ultra-high yield, a dependable payout, or both, there’s at least one Canadian dividend stock for you.
I’ve put together a well-diversified basket of five Canadian dividend stocks. Not only does the basket provide well-rounded exposure to the stock market, but all five dividend stocks are also currently yielding above 4%.
Bank of Nova Scotia
The Canadian banks are an excellent place for a passive-income investor to start. The Big Five not only all pay top yields but also own some of the longest payout streaks you’ll find on the TSX.
With a dividend yield that’s nearing 7%, Bank of Nova Scotia (TSX:BNS) is the highest-yielding of the major Canadian banks. It’s also been paying a dividend to its shareholders for close to 200 consecutive years.
There’s not much for a passive-income investor to dislike about this Canadian bank.
Sun Life
Sticking with the financial space, Sun Life (TSX:SLF) is another trustworthy dividend stock that you don’t need to second guess.
At a dividend yield of 4.5%, Sun Life can’t compete with the likes of Bank of Nova Scotia. However, the stock can provide a portfolio with stability and defensiveness in addition to passive income.
The insurance space is far from an exciting one. But it is reliable.
If you’re looking to limit volatility in your investment portfolio, Sun Life deserves a spot on your watch list.
Telus
I wouldn’t bank on the demand for insurance disappearing anytime soon. The same goes for telecommunication services.
With shares down 15% over the past year, investors have an opportunity to buy Telus (TSX:T) at a discount today. The recent pullback has also shot the dividend yield to above 6%.
It may be a slow turnaround, but there’s no denying the long-term need for telecommunication services.
In addition to a top dividend yield, patient long-term investors may also be in for market-beating returns with shares priced where they are today.
Fortis
When it comes to dependability, utility stocks are not second to many. While telecommunication services could be considered essential, the sector itself does tend to be cyclical. In comparison, the utility space typically sees far less volatility.
There’s not a whole lot to get excited about with a utility stock like Fortis (TSX:FTS). That is unless you’re looking for dependability and passive income.
At today’s stock price, Fortis’s dividend yield is above 4%.
Brookfield Renewable Partners
Last on my list is a renewable energy stock that differs slightly from the other four companies in this basket.
In terms of the dividend yield, Brookfield Renewable Partners (TSX:BEP.UN) is on par with the other four companies, yielding 5% today. Where the renewable energy company separates itself is with its market-beating track record.
The renewable energy space has massive long-term growth potential in front of it. And Brookfield Renewable Partners is a global leader that’s in a prime position to capture that growth.
Even with shares down 30% from all-time highs, the energy stock is still largely outperforming the Canadian stock market’s returns over the past five years. And that’s not even including dividends, either.
The post My Top 5 Ultra-High-Yield Dividend Stocks to Buy in May appeared first on The Motley Fool Canada.
Should you invest $1,000 in Brookfield Renewable Partners right now?
Before you buy stock in Brookfield Renewable Partners, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Brookfield Renewable Partners wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $18,271.97!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 5/21/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Nicholas Dobroruka has positions in Brookfield Renewable Partners. The Motley Fool recommends Bank Of Nova Scotia, Brookfield Renewable Partners, Fortis, and TELUS. The Motley Fool has a disclosure policy.
2024
