Despite the U.S. Federal Reserve hiking its benchmark interest rate at the end of last year the Bank of Canada held its key interest rate steady at 0.5%.
Meanwhile, other developed world central banks also continue to implement ultra-loose monetary policy measures.
Overall interest rates remain at historically low levels.
In an environment of low interest rates, stocks with high dividend yields could be a good area to focus. Here are 2 companies to take a look at.
AKITA Drilling Ltd. (TSE: AKT.A)
Calgary, Alberta-based AKITA Drilling Ltd. is an oil and gas drilling contractor. The company has drilling operations across Western Canada.
AKITA announced that its Board of Directors approved the payment of a quarterly dividend of eight and one half cents. The dividend will be paid to holders of Outstanding Class A Non-Voting and Class B Common shares of AKT. The Class A Non-Voting shares currently offer an attractive yield of 5.07%. Yield on the Class B common shares stands at 3.18%.
Labrador Iron Ore Royalty Corporation (TSE: LIF)
Labrador Iron Ore Royalty Corporation holds a 15.10% equity interest in Iron Ore Company of Canada ("IOC") and receives a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC.
Labrador Iron Ore declared a regular quarterly cash dividend of $0.25 per common share when it reported its result of operations for 2015. LIF currently offers a dividend yield of 7.96%.
