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3 Top TSX Dividend Stocks to Buy With $1,000

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Canada’s economic rebound continues to climb day after day. The TSX continues to hit all-time highs, rising 9.77% since the beginning of 2021. So far in April, it’s hit around 3% growth. This could be the start of a long-term rally, one that investors won’t want to miss. So before you miss out on superior gains, now is a great time to get in on solid dividend stocks.

Go for gold

Gold stocks continue to be a strong play, even in a market recovery. The gold mining industry has shifted. Companies are merging around the world to create vast portfolios. This reduces risk, and of course increases the bottom line. A perfect choice to pick up to see future growth and solid dividends, is Kirkland Lake Gold Ltd. (TSX:KL)(NYSE:KL).

This $12 billion gold miner has seen its stock rise 16% in the last month alone, compared to 3% on the TSX. Yet shares are still below where they were a year ago, providing a solid opportunity to jump before another climb happens.

The company reported 78% growth in revenue year over year during its most recent quarterly earnings report. On top of that, it saw net income rise by 32%. Even with COVID-19 creating pressure on the mining industry, the company’s acquisitions beforehand allowed for strong profitability.

Production is expected to continue rising with more mines opening up post-pandemic. With more pandemic-related difficulties going to the wayside, the company is the perfect mix of growth and dividends. Right now investors can lock in a 1.9% dividend yield from this dividend stock.

Energy rebound

Another strong play with dividend stocks are with the energy rebound. There are tons of energy companies out there, but I would go first and foremost towards pipeline companies. These companies have solid revenue from long-term contracts, meaning your dividends are safe and secure now and decades from now.

A perfect choice would be Pembina Pipeline Corp. (TSX:PPL)(NYSE:PBA). I’m choosing Pembina over other competitors because it hasn’t announced major growth in its pipeline projects in a while. But those growth projects are there, so when an announcement happens it’s likely this company’s shares will explode.

The $20 billion company has seen shares rise by 30% in the last year, and 23% since the beginning of the year. It offers a dividend yield of 6.75% as of writing, making it one of the best dividend stocks out there. That dividend is produced monthly, so you get your cash quick! And again, this stock is supported no matter what happens in the energy sector, so you can look forward to dividends for years to come.

Future opportunity

Now the oil and gas sector may be going through a rebound, but clean energy is going through a pull back. Investors got excited with the announcement of clean energy investment. But then they realized they won’t see those returns for another decade or so. But that’s why now is the perfect time to jump on dividend stocks like Brookfield Renewable Energy Partners LP (TSX:BEP.UN)(NYSE:BEP).

Brookfield owns assets around the world, with a wide-range of diverse clean energy assets that will bring in cash for decades. Rather than bet on one type of clean energy product, you get it all. This creates a safe way to get in on clean energy growth, which is why you’ll see dividends continue to rise.

The $41 billion company should see massive growth with the investment in clean energy. However, it’s already been growing at a rapid pace, seeing its EBITDA margin grow by 60% year over year as of the latest earnings report. Shares are up 63% in the last year, but down 18% since the pull back. So you can lock in a 3.24% dividend yield at low shares prices!

Foolish takeaway

If you were to invest $1,000 into each of these dividend stocks today, you would receive a total of $120 in dividends as of writing. That’s no matter what happens with the TSX this year. So get in on the action today!

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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 Amy Legate-Wolfe owns shares of Brookfield Renewable Partners and PEMBINA PIPELINE CORPORATION. The Motley Fool recommends PEMBINA PIPELINE CORPORATION.

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