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Canadian Investors: The Best Dividend Stocks to Buy Today

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The Canadian economy continues to recover from the pandemic, leaving opportunities galore for investors. Some of the best dividends stock to buy today are valuations still considered a bargain. While there might still be some short-term volatility, these stocks offer significant growth in both share price and dividends in the years to come.

If you’re going to go the long-term route, then I would consider looking into industries going through a recovery themselves. This could be the growing tech industry, the expansion of clean energy, or simply going old school with oil and gas stocks.

If dividends are what you’re after, some of the best dividends stocks to buy today trade at low valuations with high dividend yields. Long-term investors won’t have to be patient for long to see a rebound. And they can look forward to share growth and dividends for even decades from these stocks.

Enbridge stock

If you know anything about the best dividend stocks to buy today, you knew this was coming. Enbridge Inc. (TSX:ENB)(NYSE:ENB) is one of the best dividend stocks in Canada, and frankly one of the best stocks on the TSX. That comes down to the growth strategy and security offered by Enbridge stock.

The company has several strategies to bring in revenue. It has long-term contracts that will support cash flow for decades. It has $10 billion in growth projects to continue seeing growth of its bottom line. And it recently started expanding into renewable energy. But the main part: oil and gas producers need pipelines. That makes this company a safe and stable long-term investment.

As for dividends, Enbridge stock is a Dividend Aristocrat. That means it’s seen over 25 years of dividend growth. In the last decade alone, that growth has hit a compound annual growth rate (CAGR) of 14.32%! It currently offers a 7.02% dividend yield. Investors can thus bring in $3.34 per share per year. Meanwhile, shares are up 23% in the past year and growing.

Yet what makes this one of the best dividend stocks to buy today is its share price. True, it’s trading at 52-week highs. Yet when looking at valuations, it trades at 1.8 times book value and 2.5 times sales. Want more proof of long-term potential? If you had bought $10,000 in Enbridge stock a decade ago and reinvested dividends, you could have $74,653 today!

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Keyera stock

A less obvious but equally as high dividend stock to consider is Keyera Corp. (TSX:KEY). Keyera stock is one of the best dividend stocks to buy today thanks to its midstream energy infrastructure services. It mainly services the oil and gas producers in Western Canada, generating 70% of cash flow from fee-for-service and take-or-pay contracts. This provides similar sustainability to Enbridge stock.

And like Enbridge, Keyera stock continues to increase its dividends. The company currently offers investors a 6.83% dividend yield. That yield has grown at a CAGR of 7.87% in the last decade alone. This stability and growth in dividends is enough reason to make this an ideal long-term hold.

While others oil and gas businesses floundered during the last year, Keyera stock is one of the few that saw a steady upward trend. Most recently, there’s actually been a jump in share price. The stock plummeted 70% during the March 2020 crash, but has since almost made up the entire loss. That leaves little room to get in before a complete turnaround.

With oil demand continuing to rise, especially as the pandemic ends, this could drive further earnings and cash flow. Then there’s the KAPS pipeline system aimed at construction in the next three years for $1.3 billion. This provides serious long-term potential, and will keep up the dividend and share growth.

Shares are now up 53% in the last year alone, and again its valuations make this one of the best dividend stocks to buy today. Keyera stock trades at 2.2 times book value and 2.1 times sales, remaining a serious bargain. If you had bought Keyera stock a decade ago and reinvested dividends, today it would be worth about $39,467!

Now that you have stable cash coming in, these stocks are where you should focus your attention.

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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 ENBRIDGE INC. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends KEYERA CORP.

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