Investing in Canadian dividend stocks can be a valuable addition to your portfolio, providing a consistent income stream. However, it’s essential to consider various factors beyond just dividend yields when making your selections. Factors like a company’s overall performance, revenue growth, dividend growth rate, P/E ratio, and the sustainability of its business model are crucial.
Here, we present a list of the 15 best Canadian dividend stocks for 2023, encompassing a mix of dividend aristocrats, major banks, and monthly dividend stocks.
Enbridge boasts a remarkable 10% compound annual growth rate (CAGR) over the past 26 years. With over 66 years of dividend payments, it’s a reliable high-yield stock. Enbridge operates North America’s largest natural gas distribution network and is involved in various energy sectors.
Fortis has an impressive record of increasing dividends for 49 consecutive years. This utility company provides electricity to millions of customers across Canada, the United States, and the Caribbean. With a forward dividend yield of 4.24%, it’s a stable choice for income-focused investors.
As Canada’s largest bank, Royal Bank of Canada (RBC) is a leading performer in North America’s banking sector. With a vast customer base and over 50 years of growth, RBC offers a forward annual dividend yield of 3.89% and a P/E ratio of 11.97.
Scotiabank, one of Canada’s oldest banks, has a strong dividend history, increasing dividends in 43 of the last 45 years. It stands out with a forward annual dividend yield of 5.99% and operates globally, with an asset base exceeding $1.1 trillion.
Canadian Natural Resources is among the world’s largest crude oil and natural gas producers, with operations spanning several countries. It’s committed to reducing carbon emissions and offers a forward dividend yield of 4.20%.
TC Energy is a major oil and gas pipeline operator with a vast network across North America. Its dividend payout ratio is above 100%, reflecting strong free cash flow. The company is also involved in clean energy infrastructures.
Toronto-Dominion Bank (TD) is Canada’s second-largest bank, with a long history of dividend payments and substantial customer reach. With a current yield of 4.04%, TD is a foundational dividend stock for Canadian investors.
BCE, formerly Bell Canada Enterprises, is Canada’s largest communications company. Despite its high payout ratio, BCE generates robust cash flows, making it an attractive dividend stock.
Telus was a pioneer in 5G technology and continues to expand its customer base. The company aims to increase annual dividends by 7-10% until 2022, supported by strong cash flow.
Shaw Communications is a telecommunications giant, offering internet and TV services primarily in Western Canada. Its monthly dividend payments make it a unique option.
Bank of Montreal (BMO), with a history dating back 204 years, has consistently paid dividends since 1829. It aims to pay out 40-50% of earnings in dividends over time.
Granite REIT owns a diverse portfolio of properties across seven countries. Its forward annual dividend yield of 3.94% makes it an attractive option for diversification.
National Bank is the 6th largest bank in Canada, with a strong presence in Quebec and a commitment to maintaining a dividend payout ratio in the 40-50% range.
Pembina Pipeline Corporation, in operation for over 65 years, owns pipelines transporting oil and gas across Western Canada, offering monthly cash dividends.
Canadian National Railway continues to excel in railway transportation, serving both Canada and the U.S., with a strong history of dividend growth.
Investing in Canadian dividend stocks can be done by purchasing individual stocks or using Canadian dividend ETFs for diversification. Several platforms, such as Questrade and Wealthsimple Trade, offer easy access to these investments.
While individual stocks provide direct ownership, diversification can be achieved through dividend mutual funds or ETFs, albeit with a small management fee.
Consider your investment goals and risk tolerance when choosing between individual stocks and ETFs, and select a platform that suits your needs.
