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3 Top Dividend Stocks for September 2020

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If you’re like many of us at Motley Fool Canada, you’re constantly looking for top dividend stocks to supplement your income. The risk in the stock market is alive and well. Buffering this risk by buying top dividend stocks that provide top yields is a good way forward.

Here are three top dividend stocks that offer good value. They also offer very generous yields of up to 8%. They are the top dividend stocks for September 2020.

Suncor Energy: A well-diversified dividend stock screaming value

There are many stocks in the oil and gas industry that have been cast aside. And while we can certainly understand why, we can also see that this has created many opportunities. A company like Suncor Energy (TSX:SU)(NYSE:SU) is a prime example. This dividend stock is trading well below book value. It is yielding 5%, and it is a well-diversified oil and gas energy machine.

Suncor is somewhat unique for its integrated business model, which proves very useful in difficult times like these. This means that Suncor doesn’t only have exposure to the production side of the business. It is also exposes to the refining and marketing business. What this means is that Suncor’s diversified exposure shelters it from the volatility of the more focused oil and gas producers.

Suncor’s stock price has been hit hard, as the company cut the dividend and as the pandemic hit.

Going forward, oil and gas companies will continue to have their place in this enormous global energy shift to clean energy.

Canadian Natural Resources: The bread and butter of energy stocks

This top-quality oil and gas company is unparalleled in its reserve quality, its costs, and its financial strength. While many other oil and gas companies continue to go bankrupt (which reduces production and therefore increases oil and prices), Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) remains.

Canadian Natural Resources is yielding 7.94%, as oil and gas stocks continue to get crushed. But looking at the financials, things don’t look all that bad. Canadian Natural Resources has shown an ability to generate cash flows, even in difficult periods. This should sustain the company until better times come along.

Hard times today have created this opportunity. Canadian Natural Resources is a quality company that has been caught in the downdraft of the energy sector. Oil prices have been hovering at or around $40 since June after being hit hard earlier in the year. Today, we have the opportunity to buy this quality energy stock at extremely depressed valuations.

Chartwell Retirement Residences: A “safe” 6% dividend yield

Chartwell Retirement Residences (TSX:CSH.UN) is the largest provider and owner of seniors housing communities from independent living to long-term care. We know that the population is aging and that senior communities are on the rise. We also know that Chartwell has been addressing this market with much success.

This top dividend stock is yielding 6.1% today. The coronavirus pandemic has hit Chartwell and brought lower occupancies and higher costs. But we will learn to live with COVID-19 and/or a vaccine will be developed. Chartwell will return to its path of long-term, sustained growth driven by long-term trends.

Motley Fool Canada: The bottom line

The three top dividend stocks discussed in this article are top names in their respective industries. The coronavirus and other macro factors have hit these companies hard, but they are all well-managed and operationally sound. The time to buy is when others are selling. Buy these high-yielding stocks that others are selling. At Motley Fool, we know this is a good strategy that you won’t regret in the long run.

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 Karen Thomas owns shares of Canadian Natural Resources and CDN NATURAL RES.

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