The TSX is filled with high-quality income stocks. However, some are better than others.
Here are three top Canadian income stocks I’d recommend investors consider today.
Indeed, this utilities play offers an outstanding blend of growth and income to long-term investors. The company’s rock-solid regulated utilities business provides extremely stable cash flows to long-term investors. These cash flows are supplemented with impressive growth via the company’s renewable energy portfolio.
Algonquin has made a string of well-timed investments in recent years in renewables. For ESG-oriented investors, this makes Algonquin a top pick in this environment.
Of late, Algonquin’s share price has somewhat lagged. This has provided what I view as an excellent long-term entry point for interested investors today.
Currently, Algonquin provides investors with a growing dividend yield of 4.5% today. It’s one of the best on the TSX right now.
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Well, this dividend gem has increased its distribution every year for nearly five decades. The company has provided a track record that’s largely unmatched among its peers.
Another utility play, Fortis provides long-term investors with a stable and growing yield of 3.7%. This company’s dividend growth is likely to take this yield a lot higher over the long term for investors looking for a place to put a substantial position.
Indeed, this market doesn’t show many pockets of real value today. Fortis represents what I view as defensive, high-quality value and income in this environment.
WPT Industrial REIT
As far as real estate stocks go, WPT Industrial REIT (TSX:WIR.U) is about as good as it gets.
This $1.7 billion company has tonnes of catalysts working in its favour. Indeed, real estate is a red-hot sector right now. And WPT’s asset base has soared in value accordingly.
However, I don’t think the market is accurately pricing the value of the company’s core portfolio. Additionally, I view industrial real estate as the asset class to be in for the long haul. The distribution centres and warehouses the company owns are the backbone of the e-commerce revolution. Accordingly, there’s a real long-term catalyst with this stock that’s difficult to get in the real estate sector.
This REIT provides investors with a healthy dividend yield of 4.4% at the time of writing. I think this dividend is more than sustainable, given WPT’s relatively low payout ratio. Accordingly, those seeking diversification can’t go wrong with this name.
Like these top income plays? Here are a few higher-growth plays to consider right now:
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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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.