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3 Top Dividend Stocks to Buy Right Now and Hold for a Decade

One stock is at a 12-month high, while the other two appear oversold today, giving investors good dividend growth and an opportunity pick up some nice capital gains in the coming years.

Let’s take a look at three Canadian companies that deserve to be on your dividend radar today.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP), formally known as TransCanada, is a major player in the energy infrastructure industry with operations in Canada, the United States, and Mexico.

The company is primarily a natural gas pipeline specialist but also has liquids pipelines in service or under construction, including the massive Keystone XL project. TransCanada’s other assets include power generation and natural gas storage.

TC Energy just announced plans to monetize an 85% stake in its Northern Courier Pipeline for $1.15 billion. The sale provides important cash to help TC Energy fund its large capital program that includes $30 billion in secured growth projects, of which $7 billion are scheduled for completion in 2019.

The company reported solid Q1 2019 earnings with net income of $1 billion compared to $734 million in the same period last year.

As new assets go into service, TC Energy anticipates cash flow to grow enough to support ongoing dividend hikes of at least 8% through 2021. The company has raised the payout in each of the past 19 years, so investors should feel comfortable with the outlook.

The stock currently provides a yield of 4.6%.

Canadian Imperial Bank of Commerce

The recent pullback in the financial sector is finally giving investors a chance to buy some high-quality dividend stocks at reasonable prices.

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is often viewed as the Big Five bank in Canada that carries the most risk due to its heavy reliance on the Canadian housing market. It is true that CIBC has a large mortgage portfolio, and the recent earnings report shows that a downturn in Vancouver and Toronto home sales has had an impact on revenue growth.

However, the bank’s U.S. operations are doing well, and the decline in mortgage rates in the past few months should reduce default risks connected to existing homeowners while providing new buyers with an opportunity to get into the market.

CIBC currently trades at 9.1 times trailing earnings, which appears cheap given the ongoing strength of the Canadian economy. The dividend should be very safe and now provides a yield of 5.4%.

Canadian Natural Resources

A strong balance sheet is a huge advantage in the energy sector, and Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) just demonstrated why that is the case. The company is spending $3.8 billion to buy the Canadian assets of Devon Energy. The deal adds strategic oil sands and conventional oil production near existing CNRL facilities and comes with 1.5 million acres of land.

CNRL raised its dividend by 12.5% for 2019, and the stock currently provides a yield of 4%.

The bottom line

TC Energy, CIBC, and CNRL are all top-quality companies with attractive dividends that should continue to grow. If you have some cash sitting on the sidelines, these stocks deserve to be on your radar.

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Fool contributor Andrew Walker has no position in any stock mentioned.

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