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2 Top Dividend Stocks to Buy After a Blowout Earnings Season

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Earnings season is well underway now, and several Canadian stocks have put up impressive numbers. In addition to the impressive results, a lot of high-quality stocks have been issuing strong forward guidance. Whether it’s dividend, value, or growth stocks you’re looking for, there are tonnes of great investments to buy now.

The key to buying stocks these days is about finding high-quality businesses that have exceptional long-term growth.

For the stock market and most companies, the pandemic is in the rearview. It’s all about the future now. So, we want to buy the highest-quality stocks that can consistently outperform the broader market and economy for years to come.

Several top Canadian dividend stocks look like they’re worth a buy after earnings. However, these are two of the very best.

A top Canadian energy stock for income and growth

There have been several Canadian stocks that have put up impressive earnings so far. However, one of the best earnings reports came from AltaGas (TSX:ALA).

AltaGas is a midstream energy stock and utility company offering investors a strong mix of growth potential and stability.

The company’s utilities business is highly stable. Meanwhile, its midstream energy business offers tonnes of prospects for growth. This combination is one of the main reasons why AltaGas is one of the top dividend stocks in Canada to buy now.

The company had impressive earnings due to the energy industry recovering rapidly and its midstream operations taking advantage. This bodes well for the future of AltaGas, which is why it’s one of the top stocks to buy now.

The faster-than-expected recovery has pushed its guidance for earnings per share (EPS) up considerably. Previously, AltaGas had targeted $1.45 to $1.55 of EPS this year. After its impressive earnings in the first quarter, though, AltaGas is now targeting EPS of $1.65 to $1.80 for the year.

So, it’s no surprise that many of the analysts have increased their target prices. Furthermore, every single analyst covering the stock has it rated a buy.

With its dividend yielding 4.1% at a payout ratio of just 60% and the company offering tonnes of prospects for growth, AltaGas is one of the best Canadian dividend stocks to buy now. I’d buy it soon, though. The whole energy sector has been rallying rapidly.

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A top dividend stock to buy now

Another high-quality Canadian dividend stock to buy now is BCE (TSX:BCE)(NYSE:BCE).

BCE is the perfect dividend stock to buy and forget about. It’s a massive blue-chip stock in an industry that will be around and growing for years to come.

Telecom stocks are ideal, because they have such attractive long-life infrastructure assets. This is why these companies are such cash cows and why they are perfect to buy and hold for the long term.

BCE is extra appealing as an investment, because its massive size and integrated operations have created impressive synergies. Plus, the stock has highly robust operations, as evidenced by the pandemic. The biggest impact it saw during the pandemic was just a 9% decrease in sales.

This shouldn’t be surprising, as telecommunications are highly defensive. That’s why it’s such a great dividend stock to buy now — in addition to the fact it’s a cash cow.

All this cash flow BCE can generate is crucial, as it allows the dividend stock to return an attractive amount of cash to shareholders while investing a fair amount in growth. Investing in growth is paramount these days with the rollout of 5G technology offering some much potential.

The company has been investing heavily in growing its infrastructure over the last few years, which should set it up to continue growing over the long term.

So, if you’re looking for a highly robust stock that can protect your capital and pay you a growing dividend, BCE is one of the top dividend stocks in Canada to buy now.

Looking for more excellent stocks to buy for the long term? Here are five of the best!

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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 Daniel Da Costa owns shares of BCE INC. The Motley Fool recommends ALTAGAS LTD.

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