The Best Canadian Dividend Stocks: 3 to Watch

Want to find out what the best Canadian dividend stocks are? These three names are definitely near the top of that list.

| More on:
Man holding magnifying glass over a document

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

Dividend investing is a powerful method for investors to make large gains over time. The best Canadian dividend stocks can help investors achieve their financial goals.

However, not all dividend stocks are made equal. In fact, sometimes a large yield is a bit of a trap to entice investors. Oftentimes, these dividends are unsustainable and must be cut.

So, it’s important for investors aiming for sustainable dividend investing to find reliable stocks. Even if that means sacrificing a bit in the yield department, the added risk is often not worth the potential reward.

An ideal dividend stock offers consistent dividend growth coupled with ironclad stability when it comes to making the payout. It’s up to investors to find stocks that work for their dividend investing criteria, but these traits should always be considered.

Today, we’ll look at three of the best Canadian dividend stocks that investors should be watching.

Telus

Telus (TSX:T)(NYSE:TU) is a massive Canadian holding company, which runs Telus Communications. Through its subsidiary, it offers a wide range of telecom products and services to Canadians.

When talking about top dividend stocks, it’s hard to ignore a name like Telus. This blue-chip star has long been a favourite among dividend investors.

This stock combines ambitious growth with reliable dividends to offer investors great value. Its telecom business is a core component of its success, but other divisions, such as Telus Health, have been key drivers of growth lately.

Going forward, this gives Telus great positioning to continue to grow and be one of the best Canadian dividend stocks. As of this writing, it’s trading at $25.77 and yielding 4.83%.

When a nearly 5% dividend is up for grabs with a name like Telus, investors should take note.

Choice Properties

Choice Properties REIT (TSX:CHP.UN) is one of the largest REITs in Canada with a heavy retail focus. While that may sound strange on the surface, it’s structured a bit differently from its peers.

That is, it has a massive partnership with grocery giant Loblaw, which means its locations are anchored by as reliable a tenant as you can ask for. This helps make it one of the best Canadian dividend stocks, as its dividends are juicy and stable.

Of course, some investors may be turned off REITs for the time being, but Choice is simply a little different. It didn’t cut its dividend last year when many of its peers had to.

As of this writing, it’s trading at $14.24 and yielding 5.2%. Investors with an appetite for REIT investing might want to take a look at this one.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of the largest banks in Canada, and you really can’t make a list of the best Canadian dividend stocks without a bank stock.

This dividend darling has paid a dividend every year since 1857 and grown it for most of that time too. Investors looking for moderate share price growth coupled with a rock-solid dividend will be interested in TD.

While TD is a massive name in Canada, it’s also a top-10 bank in the United States. Investors of TD are simply latching on to one of the biggest forces in banking, with a great track record for growth and reliability.

Invest in the best Canadian dividend stocks

These three stocks are some of the best Canadian dividend stocks. They each offer something unique to investors and fit different needs and preferences.

Investors looking to boost the dividends they receive should be watching these names.

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 Jared Seguin has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

More on Dividend Stocks

Dividend Stocks

Passive Income: 3 Top Canadian Stocks to Buy for Monthly Dividends

Companies such as Pembina Pipeline and Killam Apartment REIT pay investors monthly dividends, making them top bets for income-seeking investors.

Read more »

Dots over the earth connecting the world
Dividend Stocks

3 of the Top-Growing Stocks on Earth

Market volatility remains high in Q3 2022, but it’s easy to identify the top-growing stocks on Earth.

Read more »

Profit dial turned up to maximum
Dividend Stocks

1 Undervalued Canadian Dividend Stock to Buy for TFSA Passive Income and Total Returns

This cheap Canadian energy stock provides an attractive dividend yield for TFSA passive income and a shot at some big…

Read more »

money cash dividends
Dividend Stocks

Want Passive Income? 1 TSX Stock for $8/Day in Dividends

If you need cash right away, then this TSX stock can make you passive income from a stable dividend that…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

My 3 Favourite TSX Dividend Stocks Right Now

Canadian dividend stocks make for great long-term buy-and-hold investments.

Read more »

value for money
Dividend Stocks

3 Incredibly Cheap Dividend Stocks to Buy for Dependable Passive Income

Now is an excellent time to load up on Canadian dividend stocks. Here are top picks that are all trading…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

3 Simple TSX Stocks to Buy With $25 Right Now

Canadians with capital of as low as $25 can purchase three simple stocks right now and earn recurring passive income…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 No-Brainer U.S. Stocks for Investors in August

Here are two undervalued U.S. stocks to diversify your investment portfolio. They both pay safe and growing dividends!

Read more »