Dividend-paying companies such as Northland Power and IGM Financial can diversify your portfolio cash flow by paying constant and large dividends. These stocks are a safe bet to increase your portfolio value as they provide both steady income and cushion against market risks. Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. Today I will share with you my best paying dividend shares you should be considering for your portfolio.
Northland Power Inc. (TSX:NPI)
Northland Power Inc. develops, builds, owns, and operates power generation projects primarily in Canada and Europe. Founded in 1987, and run by CEO John Brace, the company currently employs 300 people and with the stock’s market cap sitting at CAD CA$4.17B, it comes under the mid-cap stocks category.
NPI has an appealing dividend yield of 5.06% and the company has a payout ratio of 70.50% , with analysts expecting a 90.36% payout in the next three years. NPI has increased its dividend from $1.08 to $1.2 over the past 10 years. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period.
IGM Financial Inc. (TSX:IGM)
IGM Financial Inc. operates as a financial services company in Canada. Founded in 1894, and now run by Jeffrey Carney, the company employs 3,371 people and with the market cap of CAD CA$10.65B, it falls under the large-cap category.
IGM has an appealing dividend yield of 5.08% and has a payout ratio of 69.01% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from $1.84 to $2.25. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend.
TransCanada Corporation (TSX:TRP)
TransCanada Corporation operates as an energy infrastructure company in North America. Formed in 1951, and currently headed by CEO Russell Girling, the company size now stands at 7,165 people and with the stock’s market cap sitting at CAD CA$55.28B, it comes under the large-cap group.
TRP has a wholesome dividend yield of 3.98% and their payout ratio stands at 118.16% . In the case of TRP, they have increased their dividend per share from $1.36 to $2.5 so in the past 10 years. Much to the delight of shareholders, the company has not missed a payment during this time. Analysts are enthusiastic about the company’s future growth, estimating a 91.3% earnings per share increase in the next three years.For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.