The Motley Fool

The 3 Best Dividend Stocks to Quit Your Job and Retire Rich

Image source: Getty Images

If the pandemic has taught us anything, it’s what’s important. Granted, a job is certainly in that category. However, having time at home with loved ones and wanting to get out and enjoy the world post-pandemic is likely to surge. This has analysts believing there will soon be a post-pandemic resignation boom. If this sounds like something you’re interested in, then you’ll need the best dividend stocks around to support your decision.

While I would never recommend that anyone just quit their job without a back-up plan, having the best dividend stocks Canada has on hand will help. If you have cash sitting on the sidelines waiting to be invested, this will certainly help you with your decision. For the purposes of this example, let’s say you have $300,000 to invest. Let’s look at three dividend stocks investors can consider buying today.

The best dividend stocks in energy

The oil and gas rebound is underway, and Enbridge (TSX:ENB)(NYSE:ENB) has become the dividend stock to beat. Enbridge stock’s secured long-term contracts have kept cash flowing during the last few years. Meanwhile, it continued to make expansion plan that investors can look forward to. This expansion means a boost in share price. However, shares are already up 17% in the last year alone.

Enbridge stock is also a Dividend Aristocrat. Its dividend has increased each year for the last 25 years. During the last decade alone, that dividend has rose at a compound annual growth rate (CAGR) of 14.32%! That’s during a slump in oil price. With a rebound underway, the company remains confident it can continue raising its yield by 7% to 9% for the next few years.

Enbridge stock offers investors a dividend yield of 6.95% as of writing. If you were to put $100,000 into Enbridge stock today, that would bring in passive income of $6,958 as of writing from one of the country’s best dividend stocks.

5 TSX Stocks Under $5

Click here to learn more!

The best big bank dividend stock

The Big Six banks offer stable growth, even during an economic downturn. These banks were some of the fastest to rebound both during the Great Recession and during the March 2020 market crash. That means no only will your shares rebound, your dividends will be safe. That’s why I would definitely consider Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).

The bank offers the best deal for one of the best dividend stocks among the Big Six banks. You can currently pick up a 4.53% dividend yield for a $80 share price. That’s the lowest share price for a relatively high yield! And the bank hasn’t been slouching on increase. Scotiabank increased its yield at a CAGR of 6.27% over the last decade.

If you were to take $100,000 in Scotiabank stock and take out dividends, you could bring in $4,557 in annual passive income.

This was an expensive way to make quick cash, so here's a much cheaper and more lucrative option!

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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 BANK OF NOVA SCOTIA.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.