Top dividend stocks in Canada right now | December 2023

Eivod Desk
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Top dividend stocks in Canada right now
Top dividend stocks in Canada right now

In this article, you will know about High Dividend Stocks Canada: List of Top Dividend Stocks in Canada for 2023-2024. Today, most of the investors are making out their investments in the share markets. This market provides numerous investing benefits with different growth rates.


Here are a few Canadian dividend stocks with a history of strong payouts:

High-yielding blue-chips:

  • Enbridge (ENB): A dominant energy infrastructure company with a 7.7% dividend yield and a 27-year streak of dividend increases.
  • Fortis (FTS): A regulated utility with a 5.6% dividend yield and a 49-year streak of dividend increases.
  • Toronto-Dominion Bank (TD): One of Canada's largest banks with a 4.4% dividend yield and a 10-year streak of dividend increases.
  • Rogers Communications (RCI): A leading telecom company with a 5.2% dividend yield and a 12-year streak of dividend increases.
  • Manulife Financial (MFC): A large insurance and wealth management company with a 5.0% dividend yield and a 16-year streak of dividend increases.


Rising stars with good dividend growth

  • Brookfield Infrastructure Partners (BIP): A global infrastructure investor with a 4.9% dividend yield and a 10-year compound annual growth rate (CAGR) in dividends of 15%.
  • Canadian Natural Resources (CNQ): A leading energy producer with a 4.4% dividend yield and a 5-year CAGR in dividends of 11%.
  • Pembina Pipeline Corporation (PPL): A midstream energy company with a 5.7% dividend yield and a 10-year CAGR in dividends of 10%.
  • Granite REIT (GRT.UN): A diversified REIT with a 5.7% dividend yield and a 5-year CAGR in dividends of 15%.
  • Evolve Sustainable Power & Infrastructure Split Corp. (PWI): A renewable energy and infrastructure company with a 6.2% dividend yield and a high growth potential.


Here are some options to consider:

High-yield options (5%+)

  • Enbridge (ENB): Energy pipeline giant with a 6.4% yield, offering strong income potential. However, energy sector carries risks.
  • Pembina Pipeline Corporation (PPL): Another energy pipeline company with a 6.3% yield. Similar risk profile to ENB.
  • MFC (Manulife Financial Corporation): Insurance company with a 5.4% yield and a diversified business. Be aware of potential volatility in the financial sector.


Moderate-yield options (4-5%)

BCE Inc. (BCE): Telecommunications leader with a 5.2% yield and a stable business model. Consider potential regulatory risks.
Royal Bank of Canada (RY): Major bank with a 4.9% yield and strong financials. May be affected by economic fluctuations.
TD Bank Group (TD): Another large bank with a 4.8% yield and a diversified presence. Similar risk profile to RY.


Important things to remember:

Past performance is not indicative of future results.
Dividend yields can fluctuate.
Diversification is important to reduce risk.
It's crucial to do your own research before investing.

Dividend payout ratio: Ensures the company can comfortably maintain its dividend.
Debt levels: High debt can put future dividend payments at risk.
Growth prospects: Companies with strong growth potential can increase their dividends over time.
Sector diversification: Investing in different sectors can reduce risk.


Here are 5 options that combine affordability and promising dividends, but remember to do your own due diligence before investing:

1. First National Financial (FN): Price-to-Earnings (P/E) Ratio: 6.7, Dividend Yield: 6.3%. This mortgage lender boasts a strong track record of dividend increases and a payout ratio below 70%, indicating sustainability. However, the housing market's uncertainty requires caution.

2. Whitecap Industrial Growth LP (WIE.UN): Price-to-Book (P/B) Ratio: 1.2, Dividend Yield: 5.0%. This industrial equipment distributor offers a monthly dividend and has increased its payout six times since 2021. However, its reliance on specific sectors could expose it to economic downturns.

3. Northwest Healthcare Properties REIT (NWH.UN): P/E Ratio: 13.7, Dividend Yield: 12.3%. This healthcare REIT delivers a juicy monthly payout, but its high yield raises concerns about potential dividend cuts in the future. Research its tenant stability and occupancy rates before committing.

4. Canadian Utilities Limited (CU): P/E Ratio: 15.2, Dividend Yield: 5.2%. This diversified utility provider offers a stable dividend and a long history of dividend increases. However, its recent stock price decline might indicate potential risks.

5. Pembina Pipeline Corporation (PPL): P/E Ratio: 13.3, Dividend Yield: 5.7%. This midstream energy company has a solid dividend track record and a 10-year dividend CAGR of 10%. However, its dependence on oil prices makes it susceptible to energy market fluctuations.

Remember, "cheap" doesn't always mean "good." These stocks carry potential risks alongside their high yields. Before investing, consider factors like:

Company fundamentals: Analyze financial statements, debt levels, and growth prospects.
Dividend sustainability: Look at payout ratios and historical dividend trends.
Industry risks: Understand the sector's specific challenges and vulnerabilities.
Your risk tolerance: High yields often come with higher risks.

Diversify your portfolio and consult a financial advisor for personalized guidance.

DISCLAIMER: This article by Eivod is general in nature. We provide investment opinions, based on historical data and our articles are not intended to be investment advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis, driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Eivod has no position in any stocks mentioned.

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