3 Top TSX Income Picks to Buy Today

These three companies are perfect options for income investors looking to build their long-term dividend portfolios today.

| More on:
Profit dial turned up to maximum

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

Summer is just around the corner, and it appears to be the perfect time for investors to make new additions to their portfolios. Today, I’m going to talk about three stocks on the TSX that I believe are excellent options for income investors right now.

Fortis

For investors who are nearing or in retirement, there’s hardly a better option than Fortis (TSX:FTS)(NYSE:FTS) right now. Indeed, this company has an excellent track record when it comes to dividend growth. Fortis has been increasing its dividend consistently almost for almost 50 years. Indeed, that sort of dividend-growth track record is hard to find.

Accordingly, this stock is a staple for income investors. At the time of writing, it has a dividend yield of over 3.6%, which is quite enticing, especially considering where bond yields are right now. Furthermore, Fortis’s regulated utilities business ensures a great deal of stability for investors as of today. Thus, this stock is an excellent option for individuals who are on the quest for a high-quality income pick.

Enbridge

When it comes to income stocks, Enbridge (TSX:ENB)(NYSE:ENB), has been on my radar for quite some time. As of today, this company has a dividend yield of more than 7%, which is difficult for investors to ignore. Furthermore, Enbridge’s management team has made a commitment to increase the dividend by approximately 3% for the next few years.

This Calgary-based pipeline operator has favourable long-term contracts with some of the country’s leading oil producers, which provides a tremendous amount of stability to long-term investors. Furthermore, it minimizes Enbridge’s exposure to commodity prices.

I have no doubt that this company will continue to generate a tonne of cash flow in the long term, thus providing substantial returns to investors. Yes, this stock’s growth has been sluggish as of late due to the unfavourable political climate. However, I am convinced that Enbridge remains a top pick for investors who are seeking a reliable income play today.

Scotiabank

For investors seeking an income play in the banking space, I believe that Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is an excellent choice. The company has high exposure to emerging markets, which is risky but rewarding at the same time. Indeed, this stock has the potential to generate outsized returns in the long run.

Recently, Canada’s third-largest bank has made a number of takeovers, which has strengthened its international presence. Furthermore, these acquisitions have enabled the company to diversify its operations in other countries. Without a doubt, Scotiabank’s strong foothold in Mexico, the Caribbean, and the South American countries is bullish for long-term investors.

Yes, this company has halted some of its non-core operations recently, which has made some investors cautious lately. Nevertheless, I think that these cost-cutting measures will prove to be beneficial for the company as it is going to free up more capital. Indeed, Scotiabank can use these funds to make more acquisitions, which will bolster its top line. At the time of writing, Scotiabank has a dividend yield of 4.5%, which is quite attractive.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC.

More on Dividend Stocks

growing plant shoots on stacked coins
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy Now and Own for 25 Years

These top TSX dividend stocks look oversold and now offer attractive yields for TFSA and RRSP investors.

Read more »

Profit dial turned up to maximum
Dividend Stocks

RRSP Investors: 2 Undervalued TSX Stocks to Buy Now for Total Returns

Top TSX dividend stocks are now on sale for RRSP investors seeking attractive total returns.

Read more »

TFSA and coins
Dividend Stocks

2 Beaten-Down Stocks to Buy for Your TFSA

Two beaten-down, but high-yield TSX stocks are profitable options for TFSA investors.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

Inflation Soars to 7.7%: 1 Dividend Stock to Buy Now

Enbridge (TSX:ENB)(NYSE:ENB) stock looks like a magnificent dividend stock to help Canadians deal with inflation at 7.7%.

Read more »

Dividend Stocks

RRSP Investors: 2 Oversold Dividend Stocks to Buy Now for Total Returns

These great Canadian dividend stocks look cheap today for an RRSP focused on total returns.

Read more »

Volatile market, stock volatility
Dividend Stocks

2 Dividend Stocks to Own When the Market Is in Turmoil

Two TSX stocks can sustain dividend payments, even if the present market turmoil extends longer than expected.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Passive-Income Stocks to Help You Through This Market Correction

These three passive-income stocks offer stellar dividends around 6% to help get you to the other side of this market…

Read more »

Coworkers standing near a wall
Bank Stocks

Policy Rate: 2 More Hikes After July 2022 to Reach Neutral Level

The Bank of Canada might need three more rate hikes beginning in July 2022 to reach neutral levels.

Read more »