4 Top Canadian Dividend Stocks That Yield More Than 4%

Are you a fan of dividend stocks? Here are some of the top Canadian dividend stocks for the long term.

| More on:
Increasing yield

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

When it comes to long-term investing, I choose stability. It is okay for me if my portfolio lags some jazzy, hot stocks. Stable dividend stocks that offer decent growth potential for the long term would be sufficient to create a large retirement reserve. Here are some of the top Canadian dividend stocks for the long term.


Utility stocks generally outperform broader markets in low-interest-rate environments. One such attractive TSX stock among utilities is Emera (TSX:EMA). It caters to more than 2.5 million customers in Canada, the U.S., and the Caribbean.

Emera stock yields 4.6% at the moment, higher than TSX stocks at large. It has consistently raised dividends since 2007. Notably, the company intends to increase dividends by 4-5% through 2022.

Emera earns more than 95% of earnings from regulated operations, which makes its dividends more reliable. It plans to invest approximately $8 billion in capital projects by 2023. These investments will grow its rate base, ultimately increasing its revenues.

TC Energy

Top energy midstream stock TC Energy (TSX:TRP)(NYSE:TRP) yields 5.6% at the moment. The company runs energy pipelines that connect producers and refiners and earns a fixed fee for transportation. Its low-risk business model enables earnings visibility, which drives shareholder payouts.

TC Energy has increased its dividends for the last 21 consecutive years. It will likely continue to raise dividends for the next several years, driven by its large pipeline network and earnings stability.

Investors should note that TC Energy has remained strong in all the major crises lately. The company managed to raise dividends during the 2008 financial meltdown as well as during the pandemic last year, because of its strong balance sheet and stable earnings.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) yields 4.5%, marginally higher relative to peer Big Six banks. Notably, Scotiabank has paid dividends for the last 188 straight years. Such a long payment streak indicates reliability and stability.

Scotiabank has been comparatively weak since last year, mainly due to its large exposure to Latin American countries. However, its prudent provisioning last year might not significantly hamper its earnings in 2021.

BNS stock has returned more than 50% in the last 12 months, outperforming peer Canadian bank stocks. I think its strong performance will likely continue amid re-openings and stable economic recovery.

Canadian Natural Resources

If you have a distaste for the energy sector as a whole, this Canadian oil and gas titan may change your mind. Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a $48 billion integrated energy company. It yields 4.5% and has a long payment history.

Canadian Natural is a low-cost energy producer with a diversified product base. It has a strong balance sheet that makes it stand tall, even during critical times. Canadian Natural raised dividends last year, even when crude oil prices went into negative territory.

CNQ stock has returned 150% since the epic crash last year. Its disciplined cost management, strong Q1 performance, and positive outlook for the energy sector should drive CNQ stock higher.

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 Vineet Kulkarni has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA and EMERA INCORPORATED.

More on Dividend Stocks

protect, safe, trust
Dividend Stocks

3 Safe Stocks for Beginners Amid Rising Volatility

Given their stable cash flows and healthy growth potential, these three safe stocks are excellent buys for beginners.

Read more »

money cash dividends
Dividend Stocks

Market Correction: 2 Oversold TSX Dividend Stocks to Buy for Total Returns

These top value stocks pay attractive dividends and look cheap to buy for a TFSA or RRSP focused on total…

Read more »

Dividend Stocks

2 Undervalued TSX Dividend Stocks to Buy in July

These unloved TSX dividend stocks could deliver attractive returns in the back half of 2022.

Read more »

sad concerned deep in thought
Dividend Stocks

$20 Billion Telco Merger: More Concessions and Conditions Ahead?

The mediation process in the proposed telco merger could lead to more concessions and conditions before the competition watchdog grants…

Read more »

Dividend Stocks

RRSP Investors: 2 Cheap TSX Dividend Stars to Buy for Total Returns

RRSP investors seeking attractive total returns can now buy top TSX dividend stock with high yields at discounted prices.

Read more »

rail train
Dividend Stocks

Canadian Pacific Railway (TSX:CP): A Top Wide-Moat Stock to Buy and Hold Forever

CP Rail keeps the goods moving around the country. Here’s why it’s a great pick for new investors.

Read more »

Businessmen teamwork brainstorming meeting.
Dividend Stocks

The 3 Top Large-Cap Stocks for TSX Investors

Have peace of mind by investing in top large-cap stocks during this market correction. Start researching BAM (TSX:BAM.A)(NYSE:BAM)!

Read more »

Golden crown on a red velvet background
Dividend Stocks

3 Dividend Aristocrat Stocks to Buy and Hold Forever

Three Dividend Aristocrats are excellent holdings for new and old investors with long-term financial goals.

Read more »