By: Larry MacDonald

The rip-roaring rally in stocks since early March might have left some investors feeling like they missed the boat. But there are still some good buys in the market if you are a dividend or income investor. Of note are non-cyclical companies with high and growing dividends.

Their price gains have considerably lagged the advance and their dividends are still significantly higher than historical averages. They also provide substantially better income than bank deposits, money market funds, and government bonds.

Moreover, if the green shoots in the economy don’t blossom to the extent expected, these defensive stocks may regain some popularity. They could be the answer for investors who have doubts about the growth path of the economy in the short or long term.

Some examples (with yields in brackets) from Canada and the U.S. are:

Canada
Fortis Inc. (FTS) 4.5%
TransAlta Corp. (TA) 5.5%
TransCanada Corp. (TRP) 4.7%

U.S.
Duke Energy Corp (DUK) 6.8%
Progress Energy (PGN) 7.2%
Southern Company (SO) 6.3%