THE MARKET THIS MONTH: March is in the best six-month period for stocks (from November through April). Also, the U.S. and global economics are expected to grow in 2014 and support company profits. But emerging markets such as India and Brazil may suffer. A second risk is much higher stock prices since 2009 and a long time with no ‘correction’ (market setback). Gradually buy high-quality dividend-paying stocks.
Best dividend stock buys for income
BCE INC $47.82 (Quality rating: Very Coservative; TSX—BCE; Sector: Utilities; T: 800-339-6353) yields 5.2 per cent—more than Telus—and regularly raises your dividend.
CDN. IMPERIAL BANK OF COMMERCE $90.10 (Quality: rating: Very Conservative; TSX—CM; Sector: Financial Stocks; T: 416-960-8691) yields 4.3 per cent, the most of the big five. CIBC raises your dividends.
CENOVUS ENERGY $28.54 (Quality rating: Conservative; TSX—CVE; Sector: Resources; T: 306-933-8521) yields 3.7 per cent and profits from improved technology.
CORUS ENTERTAINMENT $25.25 (Quality rating: Very Conservative; TSX—CJR.B; Sector: Consumer Goods; T: 416-479-6107) yields 4.3 per cent and should profit from acquiring assets from Key stock BCE and related Key stock Shaw Communications.
EMERA INC. $32.90 (Quality rating: Very Conservative; TSX—EMA; Sector: Utilities; T: 902-428-6486) yields 4.4 per cent and has diversified electricity operations.
IGM FINANCIAL $53.87 (Quality rating: Very Conservative; TSX—IGM; Sector: Financial Stocks; T: 416-979-4198) yields four per cent and gives you mutual fund company.
The above dividend stocks are currently among the best buys for income and safety from our list of Key Stocks. They offer a high current yield and low capital risk.