Best Dividend Stocks Canada

Dividend Stocks

Dividends are the payments that are made to shareholders by the stocks. This payment can be used as income by the investors. This payment can also be used to invest in more stocks which helps in the growth of the portfolio. These dividend stocks are well-established company shares that pay out dividends to shareholders that have a proven record to generate earnings. If you are interested to know about best dividend stocks canada for investment, let us walk through so you can make the right choice. 

Dividend investment is planning or a strategy where a person buys stocks from companies that pay dividends which allows the investor to take advantage of the dividend income steady stream and also from the gains which are long term. 

Dividends are the profits of the company. The company can reinvest its income to increase the expenditure program of the capital or to lower its debt. It can also invest the net income to let other companies take advantage of the inorganic growth. The payments of dividends are not necessary.

It is hence commanding to create a profile of dividend-paying companies to reduce tasks across different sectors. it is impossible for the investors of dividends to eradicate the risk as of other asset classes.

Following is the list of best dividend stocks in Canada. These stocks pay well and also provide dividend stability and growth.

1. Enbridge Inc. (ENB. TO)

It is useful and important to have energy companies in the portfolio because it is a stable industry. In North America, Enbridge Inc. is the largest energy company which is currently providing 3.7 million consumers in the United States and Canada as well.

Following five segments operate the infrastructure of Enbridge Inc.

  • Gas utility operations involve the Distribution of Gas in New Brunswick, Quebec, and Ontario.
  • Refined products terminals and pipelines, gas, and oil are operated through Liquid Pipelines.
  • Renewable energy assets and transmission facilities are operated through Green Power and Transmission in Canada, Quebec, Alberta, and the United States as well. These energy assets include geothermal, solar, wind, and heat recovery facilities.
  • The natural gas utilities serve the industrial, residential, and commercial customers of Quebec, Ontario, and New Brunswick. These utility operations are owned by Gas Midstream and Transmission.
  • Services of Energy provide product exchange services, natural gas, and crude oil, transportation, NGL, supply management, energy marketing services, services to producers and refiners, power marketing services, storage, and commodity marketing.

The dividend yield is 6,25%.

The market cap is nearly 105 billion dollars.  

The industry is Energy.

2. Fortis

Fortis is a utility and electric gas company providing services to about 433k customers based in the United States, Caribbean, and Canada. It is a utility stock in the market list responsible for generating a predictable and stable flow of cash. People are bound to pay their bills even if they are unemployed which makes this stock market recession-proof.

The dividend yield is about 3.51 %.

The stock is trading at $60.07.

The industry is Utility Stock.

3. Stella Jones

Stella Jones is a provider of wood products that are treated with pressure based in North America. The company provides high-quality products to the market and hence has a good reputation. The two business segments operate Stella Jones

  • Logs and lumber
  • And the sales and production of wood are treated with pressure.

A total of 37 facilities for wood treatment are spread across five provinces of Canada, and about 16 states in the US. It has a huge distribution network across North America. The product mix of the company consists of the following;

  • Logs and lumber – 8%
  • Industrial products – 5%
  • Railway ties – 30%
  • Utility poles – 32%
  • Residential lumber – 25%

The US is the largest market for about 70% of the total sales of Stella Jones. While Canada comprises the remaining 30%.

The dividend yield is about 2.07%.

The market cap is about 2.43 billion US dollars

The industry is Lumber and Wood Production.

4. Toromont

Toromont industry is a company that provides capital equipment in the international market and Canada as well. The two business segments include

  • Equipment group, which is involved in providing services to the manufacturers like Caterpillar, etc. The services include sales rent, mobile equipment service, etc.
  • And CIMCO is responsible for refrigeration system services like engineering, after-sale support, design, and installation.

Over the last 30 years, Toromont has increased the dividend payments.

The dividend yield is about 1.32%.

The stock is trading at $118.44.

The industry is Capital Equipment.

5. Suncor Energy Inc. (NYSE: SU)

Suncor Energy provides crude oil and petroleum to international markets and Canada as well. It also sells byproducts, power generation, natural gas, and refined products.

On 25th March, the dividend of C$0.42 was distributed to the shareholders of the company. The price target on the share was raised from C$38 to C$45 by Jason Bouvier, the analyst of Scotiabank.

The dividend yield is about 4.11 %.

The market cap is about 1.30 billion US dollars

The industry is Energy.  

6. Enghouse Systems

Enghouse Systems is a software company that provides application software based on enterprise. The headquarters of Enghouse is in Canada and it has offices in about 20 different countries. The business segments include

  • Interactive management group, that is responsible for customer interaction
  • And Asset management group, which provides data conversion systems, operations support systems, and mobile value-added services systems.

In 2018, about 30% of the total revenues were accounted for by the United States, 3% by Canada, 18% by Europe, 19% by the United Kingdom, 6% by Asia-Pacific, and 24% by Scandinavia.

The dividend yield is about 1.98%.

The market cap is about 2.07 billion US dollars

The industry is Software- Applications.

7. Atco group

Investors who have a low-risk appetite should choose Atco group which is the largest gas distribution company in Alberta. The assets that generate cash have been diversified by the Atco group. These assets include hydrocarbon storage facilities, electric power lines, and power plants as well.

The dividend yield is about 4.41%

The stock is currently trading at $41.92

The industry is Natural Gas Distribution.

8. National Bank

National Bank is one of the six largest commercial banks in Canada. It has an experience of more than 150 years. Quebec holds accounts for about 58% of the total revenues and is the leading market share. The bank also has an international presence in Europe, the United States, etc.

National Bank provides securities brokerage, wealth and retirement management, banking and product services, financial products and services, insurance, and investment and corporate banking. The commercial and personal segment of banking of the National Bank has a strong place in Canada.

The dividend yield is about 3.70%.

The market cap is about 31.73 billion US dollars

The industry is Banks – Diversified.

9. Canadian Tire Corporation

Canadian Tire Corporation is a leading and popular retail company in Canada. It has finance, real estate, and retail businesses. The financial services segments provide financial products including credit cards and other stuff. The financial and retail services include

  • PartSource
  • Financial Services Division
  • SportChek
  • Canadian Tire,
  • Petroleum
  • Mark’s
  • Helly Hansen.

The company has more than 1700 gas bars and retail outlets where it provides sports, hardware and tools, outdoor living stuff, etc. CT REIT has 76% interest in Canadian Tire which is a real estate investment trust in Canada.

The dividend yield is about 2.80 %.

The market cap is about 11.71 billion US dollars

The industry is Specialty Retail.

10. Canadian National Railway

Canadian National Railway (TSX: CNR) is the largest in the industry of Canada’s railways. The company serves US and Canada. It has a huge track of 33 thousand kilometers from British Columbia to Nova Scotia.

It plays an important part in the North American economy with its transportation services. More economic opportunities for the companies and retailers will be presented by railroads due to an increase in the prices of gas and a decrease in the gas resources.

The dividend yield is about 1.80%.

The stock trades at $136.16 per share.

The industry is Railways.

11. BCE Inc.

BCE Inc. is Canada based telecom company that provides a large number of customers with TV services, wired, wireless, and subscription-based internet. It is also responsible for operating several TV stations and radio stations from the largest media businesses in Canada.

The recent situation of the pandemic increased an already impressive moat of BCE and the demands for wireless connectivity increased abruptly for purpose of working from home in 2020.

The dividend yield is about 5.42 %.

The stock is trading at $67.94

The industry is Telecommunication.

12. Barrick Gold Corporation

Barrick Gold (TSC: ABX) runs in almost 13 countries including Papua New Guinea, Saudi Arabia, North America, South America, and Africa, and provides copper mining and gold mining operations. The diversity of the corporation covers many gold districts around the world. The company is only focused on assets that have a long life and high margin.

The dividend yield is about 1.64%.

The trade is at $30.40

The industry is Gold and Copper Mining.

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