3 Canadian Dividend Stocks Offering Yields Over 5%

Dividend stock investors tend to focus exclusively on American blue chip stocks often to their own chagrin. High-quality international companies often offer dividend yields that are much higher than comparable American companies and these stocks are easier to own than you think. Canada happens to be home of several top dividend stocks that investors shouldn’t ignore.

Canadian stocks are certainly not on the same level as high-risk, emerging market stocks. eDividendStocks.com has put together a list of 3 high-quality Canadian stocks that offer dividend investors yields of over 5%. These stocks are all traded on the NYSE and have market caps of greater than $10 billion.

BCE (BCE: 30.59 +2.34%)

Dividend investors are very aware of American blue-chip telecom stocks like Verizon (VZ: 27.00 +1.81%) and AT&T (T: 25.51 +2.37%) and their impressive dividend yields. However, north of the border there is a Canadian telecom giant that also sports a strong 6% dividend yield. There is one significant difference though, in 2009 while AT&T and Verizon saw their stock prices decline BCE stock soared 35%.

Dividend Yield: 6.1%

Market Cap: 20B

P/E (ttm): 17.3

TELUS Corporation (TU: 38.70 +1.15%)

Telus is another Canadian telcom stock with a dividend yield near 6%. The company has a manageable 53% dividend payout ratio which will allow them to maintain their dividend in the future.

Dividend Yield: 5.7%

Market Cap: 10B

P/E (ttm): 9.1

Bank of Montreal (BMO: 58.73 +2.21%)

While Wall Street’s financial giants like Citigroup (C: 4.09 +3.81%) and Bank of America (BAC: 13.66 +2.25%) no longer offer dividend yields of any consequence, Bank of Montreal sports a high dividend yield of over 5%. BMO is very profitable and Wall Street expects earnings to increase 24% in fiscal 2011.

Dividend Yield: 5.0%

Market Cap: 28B

P/E (ttm): 17.2

Dividend stock investing certainly isn’t restricted by national borders and often times the best yields come from blue-chip international stocks. Check out eDividendStocks.com for further dividend stock ideas and analysis.

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