The Motley Fool

2 Dividend Stocks You Probably Don’t Have but Should

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When it come to dividend stocks, you probably think of a lot of the heavy hitters first, and that usually falls to the Big Six banks.

But there are plenty of options out there if you’re looking for some steady, supplemental income every quarter or even every month!

While you’re at it, you might as well make an investment that has a future potential to grow that dividend enormously. This is why today I’ll be showing you Pembina Pipeline (TSX:PPL)(NYSE:PBA) and RioCan REIT (TSX:REI.UN).

Pembina Pipeline

It’s not just Enbridge that offers a route into the highly coveted area of pipelines. North America is desperate for them right now, and strict regulations coupled with high costs means there aren’t going to be a lot of new players in the next coming years.

This is why Pembina offers such a great opportunity. The stock has performed quite well over the last year, currently sitting comfortably around its 52-week high at the time of writing. And that number is set to only get higher.

That’s due mainly to two factors. The first is the company’s upcoming growth. Pembina has quite a number of long-term contracts that mitigates the usual risk that comes with being a midstream operation. Its portfolio of projects consists of $3.1 billion set to be running by 2020. This includes the additional phase six, seven, and eight expansions to the Peace pipeline expansion project and will provide some extra cash to an already strong cash flow.

The second factor is the company’s books. Pembina’s debt leverage is low, and its latest earnings were strong with revenue reported at $1.73 billion. The next earnings report is right around the corner on May 2.

The company offers a monthly dividend that currently sits at about 4.55%. With all this growth, Pembina is very likely to reward shareholders by increasing that dividend quite quickly.


This real estate superstar is already popular because of its well-diversified REIT portfolio. Not only would investors be getting a great dividend but a lot of stability in the near future.

The company is Canada’s largest REIT and recently went through quite the overhaul to keep shareholders interested. In 2017, RioCan launched a shift to focus on six major centres going forward. This led the company to divest up to $2 billion in properties in secondary markets and in 2018 led to a further $1.5 billion.

The proceeds went to buying back 22.9 million trust units at $24.51 per unit, and given how shares are currently $25.96, where they’ve remained for some time, it seems to be a good move.

With a solid balance sheet and room to grow, its current share price, while fairly valued, should jump over the next few years as the next part of the company’s plan is executed and it starts to buy and grow again.

And just like Pembina, RioCan offers a bonus: a monthly rather than quarterly dividend. Currently, it sits at 5.49%, and with the recent cuts and plan to grow, shareholders can expect that this company should boost that dividend even higher over the next few years.

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Fool contributor Amy Legate-Wolfe owns shares of PEMBINA PIPELINE CORPORATION. Enbridge is a recommendation of Stock Advisor Canada. Pembina is a recommendation of Dividend Investor Canada.

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