After the dust settles in the aftermath of the almost 10% fall in the TSX this past year comes the exciting news.
Without further ado, let’s take a look at two top dividend stocks for your TFSA.
For more than 65 years, TransCanada has been developing and maintaining energy infrastructure, while handsomely rewarding shareholders.
And with a current dividend yield of 5.13%, it’s hard to find a safer income stream at these levels than this.
Since 2000, TransCanada stock has provided shareholders with an 8.37% compound annual growth rate (CAGR), while delivering yearly dividend increases, which has brought the dividend per share from $0.80 to $2.76 for a CAGR of over 7%.
And this growth is strong as well as predictable, as 95% of TransCanada’s EBITDA is from regulated or long-term contracted assets, resulting in above-average, visible growth and an infrastructure presence that should ensure strong growth well into the future.
As such, investors can expect continued dividend growth of 8-10% through to 2021.
Finally, in terms of market sentiment toward the stock, the recent approval of LNG Canada’s proposal to build the LNG plant is a positive in that it has resulted in the company moving forward on its Coastal GasLink natural gas pipeline.
Chartwell Retirement Residences (TSX:CSH.UN)
Chartwell is a real estate investment trust, or REIT. It is the largest provider and owner of senior-housing communities from independent living to long-term care and has been benefiting from rising occupancy levels, as an uptick in demand has been accompanied by a stagnant supply of senior housing.
With a 4.18% dividend yield, four consecutive years of cash distribution increases, and a quality portfolio of properties, Chartwell is a solid investment that is well positioned for the future.
In its latest quarter, Chartwell reported a 6% increase in fund from operations, but the real story here is the long-term trend, as a doubling of people over the age of 75 in the next 20 years will provide a big boost to demand.
Going forward, the company has a strong pipeline of opportunities to expand its portfolio of senior-housing developments as well as a plethora of opportunities to continue to expand its support services that are offered in-house.
In closing, both of these dividend stocks are in safe economic sectors with strong long- and short-term fundamentals, little economic sensitivity, and definite staying power — the answer to investors who are looking to safely grow their TFSAs.
The financial world is buzzing as Iain Butler and his team of market-beating analysts in Stock Advisor Canada pick their favorite stocks for 2019 and beyond.
As a special gift for investors, they’ve decided to give away one of their top TSX stock picks of 2019 for FREE.
Fool contributor Karen Thomas owns shares of TRANSCANADA CORP.