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3 Top Dividend Stocks to Buy Today

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Top dividends stocks with great yields are still available, even after the recent rally in the TSX Index.

Is Enbridge stock a good buy today?

Enbridge (TSX:ENB)(NYSE:ENB) is a giant in the North American energy infrastructure sector. The company transports roughly 25% of all oil produced in the U.S. and Canada. It also moves 20% of the natural gas used in the United States. In addition, Enbridge has utility businesses and renewable energy facilities.

The stock fell this year due to the pandemic’s impact on fuel demand. Enbridge’s oil pipelines generate revenue based on volumes moving from producers to refineries. With airlines struggling, and commuter cars stuck in driveways, the refineries required less crude oil feedstock in recent months.

Once vaccines become widely available, fuel and oil demand should rebound. In the meantime, Enbridge’s other business units continue to perform well.

The stock traded above $50 per share at the beginning of the year. Today, investors can buy Enbridge at less than $40 and get a dividend yield of 8%. The payout should be safe, so you earn decent income while you wait for the recovery.

Why Bank of Nova Scotia is now an attractive dividend stock

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is Canada’s third-largest bank by market capitalization. The company invested billions of dollars over the past decade to build a large international business, primarily located in Mexico, Peru, Chile, and Colombia. These countries took a beating in recent months and will face economic challenges in the medium term.

However, the long-term prospects for Bank of Nova Scotia in the economies of the Pacific Alliance trade bloc look appealing. Bank penetration is less than 50% among the roughly 230 million people that live in the four countries. As the middle class expands, demand rises for loans, credit cards, and investment services.

Bank of Nova Scotia trades at a discount to its Canadian peers, but the multiple should improve one the pandemic ends. Investors can but the stock for close to $61 right now compared to $74 in February. The company remains very profitable and the dividend should be rock solid. At the time of writing, the dividend provides a 5.9% yield.

Should BCE be a top dividend stock in your portfolio?

BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest communications company with world-class wireless and wireline networks providing mobile, internet, and TV services across the country. In addition, BCE has a large media division that is home to a television network, specialty channels, and sports teams.

The pandemic hit the media group quite hard in the past two quarters. Pro sports leagues concluded shortened seasons without fans and advertisers reduced spending. On the networks side, lucrative mobile revenue from roaming fees also dropped in the past several months. These are likely short-term issues that could be resolved by the end of next year.

BCE continues to generate significant free cash flow and its dividend is considered one of the safest in the TSX Index. The stock trades near $56 compared to a 12-month high of $65. At the current share price, the dividend offers a 5.9% yield.

The bottom line

Enbridge, Bank of Nova Scotia, and BCE are all top dividend stocks that offer above-average yields right now. If you have some cash sitting on the sidelines, these stocks deserve to be on your radar.

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The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA. Fool contributor Andrew Walker owns shares of BCE and Enbridge.

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