In This Article:
Generally, companies in the utilities sector, such as Valener and Superior Plus, often provide attractive dividend yields due to relatively stable earnings as these are considered defensive sectors that can make money in any economic environment. These businesses, therefore, generate robust cash flows and payout high income to shareholders, making them valuable diversifiers during downturns. Today I will share with you my list of high-dividend utilities stocks you should consider for your portfolio.
Valener Inc (TSX:VNR)
VNR has an appealing dividend yield of 5.41% and is currently distributing 82.58% of profits to shareholders , with the expected payout in three years being 85.09%. VNR is among the markets top 25% of dividend payers, which is certainly enticing for interested investors. Valener seems reasonably priced when looking at its PE ratio (15.7). The industry average suggests that Global Gas Utilities companies are more expensive on average 22.4. More on Valener here.
Superior Plus Corp. (TSX:SPB)
SPB has a great dividend yield of 6.23% and a reasonably sustainable dividend payout ratio , and analysts are expecting the payout ratio in three years to hit 87.50%. Despite SPB’s last payment of $0.72 being lower than their dividend per share 10 years ago of $1.56, the company has been reliable in its payout to shareholders, not missing a payment during this time. The company has been a strong performer in recent years, averaging an earnings growth of 37.74% consistently over the past five years. Dig deeper into Superior Plus here.
Fortis Inc. (TSX:FTS)
FTS has a substantial dividend yield of 4.08% and is currently distributing 63.90% of profits to shareholders , and analysts are expecting a 68.30% payout ratio in the next three years. In the last 10 years, shareholders would have been happy to see the company increase its dividend from $1 to $1.7. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Continue research on Fortis here.
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.
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.