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Dividend Stocks Featured

3 Stocks That Pay A Dividend Yield Of Over 5%


When it comes to investing, having a company that pays dividends is a great way to earn some extra cash. Not only do you earn potential money if the stock goes up in share price, but you receive money once the company pays a dividend. Generally, once a company starts paying dividends, there’s a great chance they wont stop. In fact, not only will the company not stop paying, the dividend amount they pay usually increases over time.

Here are three stocks that pay a yearly dividend yield of over 5%

Enbridge (TSE:ENB )

One of the biggest companies in Canada in terms of market capitilization Enbridge pays an impressive 6% dividend yield per year. To put that in dollar terms, if you were to invest $100,000 in Enbridge, you would get back $6000 for the year just in dividends alone. Not only that but the company has increased almost 20% in value in the past year, so your investment would be $120,000 plus dividends. Not bad at all.

Canadian Imperial Bank Of Commerce (TSE:CM)

Canadian bank stocks have a reputation of being very reliable and dependable, especially when it comes to dividend payouts. Canadian Imperial Bank of Commerce is no different, as the company pays a dividend yield of 5.30% per year. Although the stock dipped after failing to meet earnings expectations in the latest quarterly report, CIBC is still a dependable dividend payout producer.

AltaGas Ltd (TSE:ALA)

AltaGas is probably one of the companies you’ve never heard of, but the company pays an impressive 5.46% dividend yield for the year. AltaGas operates through three segments: Gas, Power, and Utilities. The company utility segment serves over 500,000 customers through its distribution network. Another positive sign is that Altagas may be undervalued based on the price-to-sales ratio (P/S). Price-to-sales ratio is a valuation metric that shows how much investors are paying vs each dollar of sales generated. Generally, the lower the P/S ratio, the better. With a P/S of just 1.14 vs 27, which is the industry average, AltaGas might be one of the companies that are flying under the radar.