Top 3 High Yield Dividend Stocks to Buy in September

Income investors can always find good dividend-paying stocks that trade at reasonable prices and offer above-average returns for a passive income portfolio.

Pembina pipeline

Pembina pipeline (TSX: PPL) (NYSE: PBA) is a mid-level player in the Canadian energy industry with a broad portfolio of assets providing producers with a full range of services. The company has grown over the past six decades through a combination of organic projects and strategic acquisitions.

Pembina Pipeline shares have rebounded well from the 2020 plunge, but are still trading reasonably priced. The energy sector is recovering and Pembina Pipeline is preparing to take advantage of market opportunities. Investors are expected to see deferred capital projects come back online next year and new deals could be underway.

The stock is currently trading at around $ 38.50 per share and offers a dividend yield of 6.5%. Distribution should be secure, and it wouldn’t be surprising to see the title drift towards $ 45 by the end of next year.

Manulife

Manulife (TSX: MFC) (NYSE: MFC) is a leading Canadian insurance and wealth management industry with a market capitalization of nearly $ 50 billion. The company operates in the United States through its subsidiary John Hancock and has a growing presence throughout Asia.

Manulife is a good financial security to buy for investors who want global exposure but prefer an alternative to banks because of concerns about their large mortgage holdings. If interest rates rise too quickly, banks could see a wave of defaults. A higher interest rate would likely be a net benefit to Manulife as it would increase the return on funds held to cover potential insurance claims.

Manulife is trading at almost $ 24.50 per share at the time of writing. That’s down from the 2021 high around $ 27.50, so investors have a chance to get the stock back if it goes down. At this price, the dividend offers a solid yield of 4.6%. Distribution increases are expected to be steady over the next few years. Manulife is less exposed to market volatility than it was during the financial crisis and earnings are expected to rise, supported by income growth in Asia.

TC Energy

TC Energy (TSX: TRP) (NYSE: TRP) owns and operates more than $ 100 billion in energy infrastructure assets in Canada, the United States and the Caribbean. The core business is the extensive natural gas transmission and storage network, but TC Energy also owns oil pipelines and power generation assets.

Assets performed well in 2020, despite difficult conditions for the energy sector. TC Energy’s struggling Keystone XL project got the final ax earlier this year, but the company still has $ 21 billion in investment projects underway to support revenue and cash flow growth. TC Energy is also big enough to make significant acquisitions.

The board of directors intends to increase the dividend by 5-7% per annum in the medium term. This is a solid indication in the current environment and should satisfy income investors. The stock looks cheap right now, close to $ 60 per share. TC Energy was trading at $ 75 before the pandemic. Investors who buy now can earn a 5.8% dividend yield.

The bottom line

Pipeline Pembina, Manulife and TC Energy are all paying attractive dividends that are expected to continue to grow over the next several years. Stocks seem reasonably priced right now and should be solid buy and hold choices for a passive income TFSA dividend portfolio.


This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Foolish contributor Andrew Walker owns shares of TC Energy and Pembina Pipeline.

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