When it comes to dividend investing, it can help to add a little diversity to your portfolio. One way to add some diversity to your dividend stock portfolio is to add some foreign stocks. You don’t have to look across the ocean to find solid foreign dividend stocks, though. Our neighbor to the north, Canada, has plenty of promising dividend stocks to add to your portfolio.
Why You Should Consider Canadian Dividend Paying Stocks
One of the best reasons to consider Canadian dividend paying stocks is due to the relative stability of the economy. The recession following the 2008 financial crisis didn’t affect Canada the same way that it affected the U.S. Canada has held up fairly well, and that means that you can find some quality dividend stocks.
Some companies in Canada did freeze the dividends during the recession. Many Canadian banks kept their dividend payouts the same, rather than increasing payments, during the recession – even though they weren’t as hard hit as U.S. banks, or European banks. However, banks like the Bank of Montreal and Royal Bank of Canada could very well start raising dividends in the relatively near future. Other Canadian dividend stocks could also conceivably increase their payouts soon.
Canadian Dividend Stock Ideas for Your Portfolio
You can find some decent Canadian dividend stocks with yields above 2.5%. These companies come from a variety of industries:
- Rogers Communications: This company provides wireless Internet, phone, and TV services, as well as home monitoring. It’s a telecom company providing residential and business services. This one is actually available on the NYSE (RCI). Yield: 3.72%
- Canadian Real Estate Investment Trust: This REIT has been in existence for 17 years, and it specializes in high quality real estate assets. You have to get this one OTC (CRXIF.PK) in the U.S., or you can get it on the Toronto Stock Exchange (REF.UN). Yield: 4.34%
- Shopper’s Drug Mart: One of the recognizable retailers in Canada, specializing in drugstore items, as well as other consumer items. Once again, you can’t get this one on the NYSE in the U.S.; you have to go pink sheets (SHOMF.PK) or use the TSX (SC). Yield: 2.52%
- Toromont Industries: This heavy equipment company makes it a point to provide diversified growth in a number of areas. Again, you can only get it OTC in the U.S. (TMTNF.PK), or get it on the Toronto exchange (TIH). Yield: 3.37%
There are plenty of other solid Canadian companies out there that pay regular dividends, and offer you the chance to add a little diversity to your investment portfolio. It’s worth checking into – especially if you can find some Canadian companies trading on a U.S. stock market.