3 Top Under-$100 Dividend Stocks Other Than Enbridge to Buy Now

These Canadian stocks offer solid yield and have diverse and resilient cash flow streams to support future dividend payouts. Moreover, these stocks are trading under $100. 

| More on:
Various Canadian dollars in gray pants pocket

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

I have said that Enbridge (TSX:ENB)(NYSE:ENB) is one of the top income stocks listed on the TSX Index. The energy infrastructure giant has paid dividends for more than six-and-a-half decades. Furthermore, it has increased its dividends by a compound annual growth rate (CAGR) of solid 10% in the last 26 years. Above all, the Enbridge stock offers a safe yield of 7.2% amid a lower interest rate environment, making it an attractive investment to derive steady income that would continue to grow with you. 

While Enbridge is a must-have stock in your income portfolio, I have shortlisted three more stocks with a long dividend payment history. Further, these Canadian stocks offer solid yield and have diverse and resilient cash flow streams to support future dividend payouts. Moreover, these stocks are trading under $100. 

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is among the most reliable dividend stocks listed on the Canadian stock exchange. Notably, it has consistently paid its regular quarterly dividends since 1997 and offers a juicy yield of over 6.4%. Furthermore, Pembina raised its dividends by about 5% annually in the last decade. Despite the significant disruption from the pandemic, Pembina paid its monthly dividends in 2020, which is encouraging and indicates the strength of its cash flows. 

The company owns a diversified and highly contracted asset base that generates solid fee-based cash flows to drive its higher dividend payments. Meanwhile, improving energy demand, increased volumes, and higher pricing should further support its cash flows. Also, its robust backlogs, strong development pipeline, and improving operating leverage position it well to continue to enhance its shareholder’s value. 

NorthWest Healthcare 

NorthWest Healthcare (TSX:NWH.UN) is an excellent dividend-paying stock for investors looking for a steady passive income stream. Like Enbridge and Pembina, NorthWest Healthcare owns a low-risk and diversified business that generates robust cash flows and drives higher dividend payments. Its strong portfolio of healthcare real estate assets helps the company to deliver solid distributable cash flows. Furthermore, it offers a high yield of about 6.2%.

Notably, the company’s occupancy rate remains very high, which is positive. Further, most of its tenants are government-backed, while the majority of rents are inflation-indexed. Also, the company has a long lease expiry term that drives its predictable cash flows. I believe its solid acquisition pipeline, expansion in the high-growth markets, growing scale, and robust balance sheet should help NorthWest Healthcare continue to bolster its shareholders’ returns through higher dividends and drive its stock.

Canadian Utilities 

Canadian Utilities (TSX:CU) is a no-brainer. This Dividend Aristocrat has the longest track record (among the publicly listed Canadian companies) of increasing its quarterly dividends. For instance, it has hiked its dividends for 49 years in a row. The company derives about 95% of its earnings from the rate-regulated utility assets that back its higher dividend payments. While its dividends are safe, it offers a healthy yield of over 5%. 

I expect Canadian Utilities to continue to deliver robust cash flows, supported by its high-quality asset base. Further, rate base growth and its continued investments in contracted assets suggest that Canadian Utilities could generate solid earnings and cash flows. Meanwhile, improvement in its energy infrastructure business and cost efficiencies are likely to strengthen its profits, in turn, its dividend payments. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS and PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

Payday ringed on a calendar
Dividend Stocks

How to Convert $500 Monthly Investment Into $200 Monthly Income

If you want the stock market to give you regular monthly income, you have to invest in the stock market…

Read more »

worry concern
Dividend Stocks

3 Ultra-Safe Dividend Stocks for Jittery Investors

Motley Fool investors nervous about the market downturn should consider these ultra-safe dividend stocks that keep paying passive income no…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

Is the Real Estate Boom Finally at an End?

It might be hard to believe, but Canada’s decades-long housing boom might be at an end.

Read more »

Caution, careful
Dividend Stocks

3 Mistakes to Avoid When Investing in a Recession

Avoid making these crucial investing mistakes during market downturns to protect your investment portfolio.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend ETFs for Easy Passive Income

Canadians can earn generous passive income the easy way from two dividend ETFs with monthly payouts.

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Pension: How Retired Couples Can Get an Extra $815 Per Month in Tax-Free Passive Income

Retirees now have an opportunity to buy top dividend stocks at cheap prices to generate high-yield, tax-free passive income inside…

Read more »

exchange traded funds
Dividend Stocks

2 Dividend-Paying ETFs You Can Buy in 2022

These two dividend-paying ETFs in Canada allow them to earn a steady stream of passive income.

Read more »

Dividend Stocks

Attention Canada: It’s Time to Buy These REITs in Your TFSA

Rising interest rates created a correction in REIT prices. It’s time to buy some REITs in your TFSA and lock…

Read more »