Grab This 8.1% Yield on the Dip

If you’re looking for a great dividend stock to add to your portfolio, then look no further than Inter Pipeline Ltd (TSX:IPL). Already a high-yielding stock, it has fallen 5% in the past month and its yield has now gotten even higher.

Currently paying shareholders 8.1%, it’s hard to find a better option for investors looking for a solid monthly payment.

And while investors might be concerned about the oil and gas stock being too risky, Inter Pipeline has proven to be a very stable stock over the years, even raising its payouts during the downturn in the industry.

In five years, monthly dividend payments have grown from 10.75 cents to 14.25, for an increase of more than 32%.

The added benefit for investors is that they also have the ability to grab the stock at a low, putting them in a great position to profit from a rising share price as well.

Trading at just over two times it book value and a price-to-earnings ratio of 15, the stock is very fairly priced. And now with Alberta having a Conservative government back in power and perhaps the same happening with the federal government later this year, the oil and gas industry in Canada could soon see a lot more support.

And that could make investors bullish on oil and gas stocks again, including Inter Pipeline.

Despite the recent decline, the stock is still up more than 8% year to date and with strong support around $21, it could be a great buy today.