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3 High-Yield Dividend Stocks to Gift Yourself This Christmas

The Motley Fool logo The Motley Fool 12/9/2019 Adam Othman
a person standing in front of a cake: Elderly man giving a Christmas present to his wife © Provided by The Motley Fool Elderly man giving a Christmas present to his wife

With December 2019 here, we are a few weeks away from 2020. This is the perfect time for you to get yourself a Christmas gift this year.

I am not talking about getting yourself a new watch or the latest smartphone you’ve had your eye on since it came out. As an investor, I believe there are a few things you can get that will top your Christmas gift this year. Investing in high-yield dividend stocks is one way to accomplish that.

To this end, companies like Canadian Tire (TSX:CTC.A), Cineplex (TSX:CGX), and Suncor Energy (TSX:SU)(NYSE:SU) are some suitable examples to consider adding to your Christmas wish list this year.

Let’s take a better look at the three stocks, so you can decide whether or not you should get them.

Canadian Tire

A tire company that does not just sell tires, Canadian Tire is a favourite stock with a decent 2.94% dividend yield that you can consider adding to your portfolio right now. The retail side of CTC includes tires, fuel for your vehicle, new sports equipment, clothes, and even toys for your children. It is pretty much a one-stop solution for most of your shopping needs.

The company also has a real estate investment trust called CT REIT. To make things even better, CTC offers banking operations by the name of Canadian Tire Financial Services. Alongside all of these offerings, CTC is a remarkably diversified company, entails low risk, and it has exposure to the banking sector through Scotiabank, which owns a fifth of CT Financial Services.

Trading for $154.76 per share at writing, CTC has a steep price but a decent dividend payout that it delivers to shareholders every quarter.

Cineplex

CTC might not exactly have a high dividend yield, but Cineplex certainly does. At a yield of 7.09%, Cineplex is right up there among the best dividend-paying companies. 2019 has not been an easy year for the company. Cineplex climbed up to $28.91 per share at the start of the year and fell by more than 20% to go as low as $22.5 per share.

The price of the company has climbed 13.35% since mid-November 2019, and the company looks on track to end the year on a good note. Shareholders have had little to worry about as far as dividend payments are concerned. The company has been consistently paying shareholders a decent amount from its profits every month without fail.

At $25.39 per share, CGX is almost 13% up within the space of a month since its positive Q3 2019 earnings report.

Suncor Energy

Suncor Energy is one of my favourite stocks to talk about. Suncor has a decent 4.06% dividend yield, and the company’s shares are trading for $41.43 at the time of this writing. 2019 has not been a fantastic year for Canada’s energy sector. Fluctuations in commodity prices have had a drastic effect on the entire industry, although the industry itself offers excellent value.

Suncor was not one of the worst hit by oil price drop due to its integrated structure. Where the commodity prices fluctuate, Suncor’s revenue from its marketing, refining, exploration, and production allows it to mitigate the volatility. Its diversified operations include wind farms, over 1,000 retail outlets, four refineries, and the largest ethanol production plant in the country.

In terms of cash dividends, Suncor has been paying shareholders $0.42 per share every quarter without fail.

Foolish takeaway

Cineplex has a certain sense of uncertainty about it. Suncor and Canadian Tire, however, could be more stable options for your consideration. I feel that Suncor, Canadian Tire, and Cineplex are all companies to keep a closer eye on in anticipation of the new year.

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Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

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