Worried About Rising Debt? Turn to These 4 Dividend Stocks

Canadian debt has risen to dangerous levels, but investors can alleviate anxiety with stocks such as Canadian Utilities Limited (TSX:CU).

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published November 30, 2017 2:00 pm EST

The Organization for Economic Co-operation and Development revealed a chapter of a future report that showed Canadians leading the world in consumer debt. Conditions in Canada are fueling anxiety among investors, which may lead some to take profits as we head into the final month of 2017 and reinvest into income-yielding vehicles.

Let’s take a look at four top dividend stocks today.

Canadian Utilities Limited (TSX: CU) is a Calgary-based company that is engaged in transmission and distribution of electricity and natural gas. The stock has increased 6.5% in 2017 as of close on November 24 and 7% year over year. The company released its third-quarter results on October 26.

Canadian Utilities posted adjusted earnings that were flat at $96 million in the third quarter, but year-to-date adjusted earnings were $440 million compared to $424 million in the prior year. Canadian Utilities has invested $1.15 billion in capital growth projects for the first nine months of 2017.

The stock boasts a dividend of $0.36 per share with a 3.7% dividend yield. The company has delivered dividend growth for 45 consecutive years.

BCE Inc. (TSX: BCE)(NYSE: BCE) is a Montreal-based telecommunications and mass media company. The stock has climbed 6.3% in 2017. The move to repeal net neutrality in the United States should pique the interest of those invested in Canadian telecommunications. Pressure from investors could lead to policy change in Canada, which could dramatically change the landscape of an industry that has become extremely competitive in attracting wireless subscribers.

BCE released its third-quarter results on November 2. Net earnings jumped 2.1% to $817 million, and service revenue was up 5.9%. The company attracted 80,823 new internet and IPTV customers, representing an increase of 6.9% from Q3 2016. The stock offers a dividend of $0.72 per share, representing a 4.6% dividend yield. The company has delivered dividend growth for eight years and counting.

Brookfield Renewable Partners LP (TSX: BEP.UN)(NYSE: BEP) is a Toronto-based company that owns and operates global renewable power assets. In a recent article, I’d focused on the company as a great long-term stock due to its foothold in a fast-growing economic sector. The stock has climbed 7.2% in 2017. The company released its third-quarter results on November 1.

Brookfield Renewable Partners reported adjusted EBITDA of $378 million compared to $332 million in the prior year. The company has maintained a strong liquidity position at $1.7 billion. Its stock offers a dividend of $0.60 per share, representing a 5.6% dividend yield.

National Bank of Canada (TSX: NA) is set to release its fourth-quarter results on December 1. Shares have climbed 16.1% in 2017 on the back of an extremely strong financial year. In a late October article, I’d discussed why National Bank was a good option for investors who wanted to own a company with a significant footprint in a booming Quebec economy. The stock boasts a dividend of $0.58 per share with a 3.6% dividend yield.