Income investors chasing high yields have three stocks to consider. They pay more than money market funds, which range from 4% to 5.40% risk-free.
Telus (TU) yields around 6%. The telecom giant posted revenue growing by 7.5% Y/Y to $4.9 billion. It added 59,000 telecom customers Y/Y in Q3. It increased its dividend by 3.4% to $0.3761/share.
BCE, Telus’s competitor, posted revenue increasing by 1.0% to $6.08 billion. Its consolidated adjusted EBITDA grew by 3.1%. It solidified its quarterly dividend by reporting strong wireless customer activations of 231,212 in the quarter. This is the second-best-ever quarterly result. Before the report, markets feared that a weak customer base would hurt its cash flow. Instead, immigration growth in Canada is driving strong results.
Enbridge (ENB), a pipeline, posted a non-GAAP EPS of 62 cents. Adjusted EBITDA rose by 3% to $3.9 billion. The $3.1 billion in cash provided by operating activities ensures that the firm will hike its dividend in January 2024.
Unfortunately, Enbridge announced a deal to buy seven U.S. renewable natural gas facilities for US $1.2 billion. It increased its stake in two German offshore wind projects to EUR 625 million. Investors need to trust management may succeed beyond its core competency.