The Motley Fool

5 Top Canadian Dividend Stocks to Buy in June 2021

Image source: Getty Images

High volatility and valuation concerns continue to keep investors on edge. Further, an expected spike in inflation is adding to their woes. However, investors with top dividend stocks in their portfolios continue to earn steady income irrespective of the volatility and uncertainty in the market. 

With that in mind, I have shortlisted five top TSX dividend stocks offering attractive yields for solid dividend income. Moreover, these companies have been paying dividends for a very long period. Also, they generate stellar cash flows and have sustainable payout ratios. 


Enbridge (TSX:ENB)(NYSE:ENB) is a must-have stock in your income portfolio. Thanks to its over 40 diverse cash flow streams, Enbridge has consistently enhanced its shareholders’ value. To be precise, it has increased dividends by 10% annually in the last 26 years in a row and has paid dividends for more than 66 years. 

I believe Enbridge’s diversified cash flow streams, $16 billion secured capital program, recovery in mainline volumes, and momentum in the core business position it well to deliver robust cash flows in the future and drive its dividend higher. The energy giant offers a very high yield of over 7.2%, which is safe. 

5 Stocks Under $49 (FREE REPORT)

Click here to gain access!

Pembina Pipeline

Pembina Pipeline (TSX:PPL)(NYSE:PBA) offers a high yield and has been regularly paying dividends since 1997. Thanks to its highly contracted business and strong, fee-based cash flows, it has raised its dividend by about 5% annually in the last decade. At the current market price, Pembina offers a juicy yield of 6.5%. 

I believe Pembina Pipeline’s highly contracted assets, recovery in energy demand, exposure to diverse commodities, and improved volumes and pricing will continue to support its bottom line and cash flows. Further, improving operating leverage, a solid backlog of growth projects, and newly secured projects will likely drive future dividends. 

Canadian Utilities 

Canadian Utilities (TSX:CU) is one of the most reliable stocks for dividend income. This Canadian company has the longest track record of dividend growth and has increased its dividends for about 49 years in a row. Currently, it offers a solid dividend yield of over 5%. 

Its highly contracted and regulated businesses provide a solid base for continuous dividend growth. I believe its continued investments in the regulated and contracted assets could strengthen its high-quality earnings base and drive cash flows. Moreover, steady improvement in its energy infrastructure business and cost efficiencies are likely to cushion its bottom line and drive the dividend. 

Algonquin Power & Utilities

Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) is a solid dividend stock that has consistently paid and raised its dividend by 10% annually in the last 11 years. Its growing rate base and solid earnings support higher dividend payments. Currently, the company offers a safe and healthy yield of 4.5%.

I expect Algonquin Power & Utilities’s low-risk business mix, increase in rate base, and long-term power-purchase agreements to continue to drive its earnings at a solid pace and, in turn, support higher dividend payments. Further, expansion of its renewable energy and development projects and strategic acquisitions bode well for future growth. 


Fortis (TSX:FTS)(NYSE:FTS) raised its dividends for 47 consecutive years and is among the top income stocks listed on TSX. The Dividend Aristocrat projects its future dividends to grow annually by an average of 6% over the next five years, which is encouraging. Currently, it offers a healthy yield of 3.7%.

I believe Fortis’s regulated utility assets, rate base growth, and substantial growth opportunities in the renewable power business should continue to drive its earnings and help the company to enhance its shareholders’ value through higher dividend payments.

Besides these top income stocks, take a look at this free report for top UNDERVALUED stocks trading below $50:

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

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 FORTIS INC and PEMBINA PIPELINE CORPORATION.

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.