Got $3,000? 3 Super Dividend Stocks to Buy and Hold

TSX investors with some cash on hand should consider stashing dividend stocks like Fortis Inc. (TSX:FTS)(NYSE:FTS) in late August.

| More on:
Growth from coins

Image source: Getty Images

Earlier this month, I’d targeted three dividend all-star stocks that were worth holding for many years to come. Today, I want to look at three more top dividend stocks on the TSX. Investors who have some cash to spend in late August should not overlook these blue-chip options that pay out consistent income. Let’s dive in.

This dividend stock offers a nice yield right now

BCE (TSX:BCE)(NYSE:BCE) is one of the top telecommunications and media companies in Canada. Its shares have dropped 1.5% in 2020 as of close on August 21. The stock is up 7.3% over the past three months. BCE released its second-quarter 2020 results on August 6.

Its fibre build program was reported at 55% complete at the end of the second quarter. It has launched Canada’s largest mobile 5G network. Moreover, it closed out the quarter with $5.4 billion of liquidity. Quality telecom providers will be even more in demand, as millions of workers now operate primarily from the home. Because of this, I’m targeting this dividend stock right now.

Shares of BCE last had a price-to-earnings ratio of 21. This puts the stock in solid value territory relative to industry peers. BCE last declared a quarterly dividend of $0.8325 per share, representing a strong 5.8% yield.

One top energy stock to spend your cash on

Enbridge (TSX:ENB)(NYSE:ENB) is an energy giant that has struggled due to headwinds in the oil and gas sector this year. Its shares have dropped 11% in 2020 as of close on August 21. The stock is up 5.5% month over month.

In Q2 2020, the company reported adjusted EBITDA of $3.31 billion compared to $3.20 billion in the previous year. Enbridge achieved DCF of $1.21 per share, which exceeded expectations in the face of the COVID-19 pandemic. Meanwhile, its continued progress on its $11 billion secured capital program. Its solid financial state means it is well positioned to post strong annual dividend growth through this new decade.

Enbridge stock last had a solid price-to-book value of 1.5. This dividend stock offers a quarterly distribution of $0.81 per share, which represents a tasty 7.5% yield. The global economic reopening will be positive for oil and gas demand going forward. This is good news for Enbridge and its shareholders.

A dividend stock that is chasing the crown

Fortis is one of the top utilities on the TSX. Earlier this month, I’d discussed why I’d never sell Fortis stock. Shares of this dividend stock have increased 7% over a three-month span.

Essential services like utilities have proven to be reliable during the pandemic. Fortis is in a class of its own when it comes to its dividend history. In the article above, I’d discussed how the company was on track to becoming a dividend king this decade. That is, Fortis will have achieved at least 50 consecutive years of dividend growth. It last increased its quarterly dividend to $0.4775 per share. This represents a 3.6% yield.

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 owns shares of FORTIS INC. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends FORTIS INC.

More on Dividend Stocks

Specialty Brands faces higher raw materials costs.
Dividend Stocks

What’s Next for Premium Brands Stock?

Shares of the specialty food production and distribution company have fallen about 25% since last October.

Read more »

Double exposure of a businessman and stairs - Business Success Concept
Dividend Stocks

2 Interesting Buys in Any Market

Here are two intriguing buys in any market climate that offer defensive appeal as well as growth and income earning…

Read more »

Dividend Stocks

TFSA Investors: 3 TSX Stocks for Tax-Free Passive Income

These Canadian corporations have strong visibility over future earnings and dividend payouts.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

Lazy Landlords: 3 Cheap Canadian REITs to Buy in May 2022

You can become a passive landlord today by investing in Canadian REITs. Here are three cheap REITs to consider this…

Read more »

Target. Stand out from the crowd
Dividend Stocks

4 High-Yield TSX Stocks to Buy Ahead of Their Ex-Dividend Dates

If you have some cash lying idle, consider these high-yielding TSX stocks.

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Passive Income: 3 TSX Stocks With Rapidly Growing Dividends

Worried about inflation? Here are three passive-income stocks to buy that pay rapidly growing dividends.

Read more »

Family relationship with bond and care
Dividend Stocks

Retirees: 4 Safe Stocks to Buy for Decent Passive Income

Retirees can offset the impact of runaway inflation by buying safe dividend stocks to create more cash flows.

Read more »

Canadian energy stocks are rising with oil prices
Dividend Stocks

3 Canadian Energy Stocks to Buy for Reliable Passive Income

Canadian energy stocks are gushing cash. Here's three top stocks that are perfect buys for reliable passive income.

Read more »