Got $1,000? Lap Up These 4 Top Dividend Stocks Right Now

Given their steady cash flows, strong balance sheet, and healthy dividend yields, these four Canadian stocks are excellent bets for income-seeking investors.

| More on:
tech and analysis

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

Amid the expectation of demand recovery, improving corporate earnings, and economic expansions, Canadian equity markets are trading close to their all-time highs. However, rising inflation and volatility in the cryptocurrency markets are a cause of concern. So, investors can strengthen their portfolios by investing in the following four safe dividend stocks that offer high yields. Apart from paying regular payouts, these stocks are less susceptible to market volatilities, given their steady cash flows and strong balance sheet.


Enbridge (TSX:ENB)(NYSE:ENB) is a Dividend Aristocrat which has increased its dividends for the previous 26 straight years at a compound annual growth rate (CAGR) of over 10%. Currently, the company pays quarterly dividends of $0.835 per share, representing a forward dividend yield of 7.2%. Amid the gradual reopening of the economies globally, oil demand could rise in the coming quarters, improving the asset utilization rate of Enbridge.

Further, the company is progressing with its $17 billion secured growth projects, which could become operational over the next two years. Along with these investments, the recovery in oil demand and its highly contracted businesses could drive its financials, allowing the company to continue its dividend growth. Besides, its financial position looks healthy, with its liquidity standing at $8.3 billion at the end of the March-ending quarter.

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) has paid dividends regularly since 1997 while raising the same at an annualized growth rate of 4.9% over the last 10 years. Despite the impact of the pandemic, the company continued to pay its dividends in the previous year, which is encouraging. Currently, its forward dividend yield stands at a healthy 6.45%.

The company earns over 90% of its adjusted EBITDA from fee-based or take-or-pay contracts, providing stability to its earnings and free cash flows. Further, Pembina Pipeline’s management has planned to make a capital investment of $785 million this year, which could boost its financials. The management expects to generate an adjusted EBITDA of $3.2-$3.4 billion this year. So, given its stable cash flows, healthy growth prospects, and high yield, Pembina Pipeline could be an excellent buy for income-seeking investors.

NorthWest Healthcare

NorthWest Healthcare (TSX:NWH.UN) is another Canadian company that delivers stable monthly dividends at a healthier dividend yield of 6.2%. It acquires and manages healthcare properties across seven countries. Given its highly defensive and diversified portfolio, the company enjoys higher occupancy and collection rate. Further, its long-term contracts, government-backed clients, and inflation-indexed rent could continue to boost its financials in the coming quarters.

Besides, NorthWest Healthcare is also looking at expanding its footprint in Australia, the United States, and Western Europe. Today, it announced a proposal to acquire Australian Unity Healthcare Property Trust for $2.6 billion. Further, the company is strengthening its financial position by deleveraging and disposing of its stake in the U.K. joint venture. Given its steady cash flows and healthy balance sheet, I believe the company’s dividends are safe.


My final pick would be BCE (TSX:BCE)(NYSE:BCE), which has a strong history of paying dividends. Currently, the company pays quarterly dividends of $0.875, representing a forward dividend yield of 5.83%. Its stable cash flows, solid liquidity position, and healthy growth prospects make BCE’s dividends safe. Despite the disruptions caused by the pandemic, the company generated $940 million of free cash flow during the first quarter, while its liquidity stood at $6.5 billion as of March 31.

Meanwhile, the demand for telecommunication services has been rising due to increased remote working and digitization of businesses. Amid the favorable industry trend, BCE has invested around $1 billion to expand its broadband network and 5G coverage. Along with these investments, the recovery in economic activities could boost the company’s financials in the coming quarters.

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.

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

More on Dividend Stocks

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »

You Should Know This
Dividend Stocks

High Inflation: The Good and the Bad for Canadians

Consider tucking away some of your long-term savings in quality dividend stocks like Brookfield Infrastructure in this correction.

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

1 Oversold REIT Stock to Buy for Safe Dividends

If you're looking for stable dividend income from an oversold stock, this office REIT is a perfect option.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

3 Cheap Canadian REITs to Buy in 2022

Are you looking for passive income? Start treasure digging in cheap Canadian REITs in this market correction!

Read more »

Dividend Stocks

TFSA Passive Income: 3 Undervalued, High-Yield TSX Dividend Stocks to Buy Now

These top TSX dividend stocks with high yields now look attractive to buy for TFSA passive income.

Read more »