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4 Dividend Stocks to Buy This Holiday Season

Every holiday season, thousands of children receive model train sets. But this year, why not buy the youngster on your gift list a piece of their very own railroad? Imagine the sparkle in little Billy’s eyes when he finds 10 shares of the Canadian National Railway Company  (TSX: CNR)(NYSE: CNI) under the tree!

OK, maybe I’m the only one who gets so excited about stocks. But equities are the gifts that keep on giving. Long after the Christmas tree has been taken down and the gift wrap is sent to the landfill, these businesses should still be cranking out dividends to their shareholders. So with that theme in mind, I have put together a special holiday-themed gift list for the investor in your life.

1. Emera Inc  (TSX: EMA)

How does an electric utility represent the spirit of the holidays? Well, for starters, Emera powers my house. That’s why my family doesn’t have to host our annual Christmas dinner by candlelight.

However, what I love best about Emera is the company’s steady dividend. Today, the stock yields a tidy 4.0%. And unless Atlantic Canadians all decide to heat their homes with fire wood, this company will continue to send out dividend cheques for many years to come.

2. Canadian Tire Corporation Limited  (TSX: CTC.A)

Canadian Tire bills itself as the No. 1 shopping destination every Christmas… and for good reason. The stores have something for everyone on your gift list.

Sure, the automotive giant never sported the biggest yield (today only a Grinch-like 1.7%). However, investors who gave the stock a pass based on this metric alone would’ve missed out on some phenomenal growth. Since 2000, Canadian Tire’s dividend has grown nearly fivefold.

3. Cineplex Inc (TSX: CGX)

My favourite holiday tradition: going to the movies on Boxing Day. And if you’re like me and live in Canada, that probably means you visit a Cineplex theater. The company has over 160 locations across the country under brands like Galaxy, Colossus, SilverCity, Famous Players, and Scotiabank Theaters.

Do you know where the money from all of that overpriced popcorn goes? Cineplex shareholders. The company pays a tidy 3.5% dividend yield and that payout have been growing over the past few years.

4. Canadian National Railway Company  (TSX: CNR)(NYSE: CNI)

Santa may have reindeer to move all of his presents, but most stores rely on trains to get goods on the shelves. And as the largest railroad in Canada, CN Rail is responsible for moving most of this freight around the country.

However, CN Rail also moves oil, corn, cars, lumber, and all sorts of other products that make our modern world hum. That’s how the company has managed to pay out such big, oversized dividend cheques over the years. And besides, what little boy or girl wouldn’t want to own a piece of their very own railway?

Who else wants more dividend income?

Of course, these aren't the only companies that crank out regular distributions. If you're looking for more names to stuff inside your stocking, then check out my special FREE report: “3 Dividend Stocks to Buy and Hold Forever”. These three firms have delivered dividends to shareholders for decades (and even centuries!). Click here now to get the full story!

Fool contributor Robert Baillieul has no position in any stocks mentioned. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of Canadian National Railway. Canadian National is a recommendation of Stock Advisor Canada.

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