Canadian Economy Seizing Up? Ease Your Worries With These 5 Dividend Stocks

Stocks such as Hydro One Ltd. (TSX:H), High Liner Foods Inc. (TSX:HLF), and others provide solid income and stability for investors concerned about an economic drawdown.

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The Liberal government provided an update on the Canadian economy and budget on October 24. The government was pleased to report an additional $46.6 billion in available spending over the next five years due to better-than-expected economic growth. The government also trimmed its deficit projection by an impressive $7 billion.

Still, experts and analysts expect the Canadian economy to slow in the latter months of 2017. With the S&P/TSX Index up 5.1% over a three-month span as of close on October 24, it may be wise to take profits or at the very least rebalance into dividend-yielding stocks.

Let’s look at five great options today.

Canadian Utilities Limited (TSX:CU) boasts global assets in utilities, power generation, and global energy services enterprises. The utility has delivered 45 consecutive years of dividend growth and offers a dividend of $0.36 per share, representing a 3.6% yield. Shares have increased 9.3% in 2017 and 6% year over year.

Hydro One Ltd. (TSX:H) is a regulated utility that operates in Ontario. It will soon service consumers in the United States with the closure of its $6.7 billion acquisition of Avista Corp. The stock has not performed well in 2017, dropping 4.8% as of close on October 24. However, its wide economic moat and solid dividend makes it an attractive choice for investors seeking income. The stock offers a dividend of $0.22 per share with a 3.9% dividend yield.

High Liner Foods Inc. (TSX:HLF) packages and sells seafood to restaurants and other entities under a variety of labels. The company released its second-quarter results on August 14. It posted an $8 million increase in sales to $232.4 million. High Liner experienced a setback pertaining to a significant product recall that resulted in $0.7 million in estimated losses. Its adjusted net income was down $2.4 million to $6.1 million in the quarter. The stock boasts a 4% dividend yield and has delivered nine straight years of dividend growth.

Snc-Lavalin Group Inc. (TSX:SNC) is a Montreal-based engineering and construction company that services a broad range of sectors. The stock is down 0.95% in 2017 but is up 7.4% year over year. In its second-quarter results, the company saw its net income climb to $136.4 million, or $0.91 per diluted share, compared to $88.5 million, or $0.59 per diluted share, in Q2 2016. Along with a 16-year dividend-growth streak, it also offers a 1.9% dividend yield.

Domtar Corp. (TSX:UFS)(NYSE:UFS) is based in Montreal and is the largest integrated producer of freesheet paper in North America. A wide economic moat along with seven consecutive years of dividend growth make Domtar an attractive target for income investors. It offers a dividend of $0.52 per share with a 3.7% dividend yield. Domtar has seen productivity jump in 2017, which should offset the expected rise in raw material costs.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned.

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