The 3 Best Canadian Dividend Stocks You Can Buy With $100

Investing in top-quality dividend stocks can help you generate a regular passive income over time.

| More on:
Canadian Dollars

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

Investing in top-quality dividend stocks can help you generate a regular passive income over time. Moreover, you don’t have to pool tons of money to start investing in top dividend-paying stocks. Even a small but regular investment in some of the best Canadian dividend stocks could help you create a lot of wealth in the long run and could continue to generate steady income for a lifetime. 

I have shortlisted the three best Canadian stocks that have consistently paid higher dividends. Moreover, these companies have resilient cash flows, indicating they could continue to enhance shareholders’ returns through higher dividends over the next decade. Also, you can buy these three stocks for less than $100.  

Algonquin Power & Utilities

Investors could consider buying the shares of Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) for a growing passive-income stream. The Canadian utility company has rewarded its shareholders with consistent and higher dividends for more than a decade. Notably, it has increased its dividends at a CAGR (compound annual growth rate) of 10% in the past 11 years and offers a decent yield of 4.4%.

Algonquin Power & Utilities has a low-risk business and high-quality regulated assets backed by long-term power-purchase agreements. I believe the contractual framework, growing rate base, and resilient cash flow indicate that it could continue to deliver stellar total shareholder return. Further, it projects double-digit growth in its rate base and adjusted EBITDA over the next five years, which could drive its earnings and future dividends and push its stock higher. 


Enbridge (TSX:ENB)(NYSE:ENB) is a must-have stock in your passive-income portfolio. Despite significant challenges from the pandemic, the energy giant uninterruptedly returned higher value to its shareholders through regular dividend payments. Barring 2021, Enbridge has delivered annual total shareholder returns of 15% in the past 25 years. Moreover, it expects to deliver an average annual total shareholder return of 13% in the coming years, reflecting its resilient business model and predictable cash flows. 

Notably, Enbridge’s over 40 diverse cash flows streams, long-term contractual arrangements, and a $16 billion secured capital growth program could continue to drive its distributable cash flows and its dividends. Besides, the recovery in mainline volumes, improvement in energy outlook, momentum in gas distribution and storage business, cost-reduction measures, and opportunities in the renewable business further strengthen my bullish view on Enbridge stock. Furthermore, the stock offers a high yield of over 6.7%, which is very safe. 


AltaGas (TSX:ALA) is another top Canadian stock for growth and regular dividend income. With its balanced portfolio of low-risk regulated utility assets and high-growth midstream operations, the company generates higher earnings and robust cash flows that drive its dividend payouts. 

Notably, its midstream operations are supported by fee-for-service or take-or-pay contracts, which lowers risk. Moreover, I believe AltaGas could continue to benefit from rate base growth, higher export volumes in the midstream business, and the addition and retention of customers. AltaGas expects its earnings to increase at a decent pace, which is encouraging. Meanwhile, its diversified operations and cost-reduction initiatives are likely to support overall margins. Currently, AltaGas offers a healthy yield of 3.8%.

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 ALTAGAS LTD.

More on Dividend Stocks

A stock price graph showing declines
Dividend Stocks

2 Stocks I Own and Will Buy More of if the Stock Market Crashes

Looking for some stocks to buy in the event the stock market crashes? Here are two options I own and…

Read more »

Man data analyze
Dividend Stocks

3 Inflation-Resistant TSX Stocks to Buy Right Now

These inflation fighters will see you through this trying time and could double your portfolio in the next decade!

Read more »

Canadian Dollars
Dividend Stocks

Passive-Income Investing: How You Can Churn Out $445/Month for the Rest of 2022

Canadians crushed by inflation should look to make big passive income in 2022 with stocks like Freehold Royalties Ltd. (TSX:FRU)…

Read more »

calculate and analyze stock
Dividend Stocks

2 TSX Stocks to Buy With Dividends Yielding More Than 3%

Are you looking for some great income stocks that can provide growth, too? Here are two stellar TSX stocks to…

Read more »

edit Balloon shaped as a heart
Dividend Stocks

Dividend Lovers: 3 U.S. Stocks You Haven’t Heard About

Don't just stick to Canadian companies for a great dividend, consider these U.S. stocks you probably haven't even heard of.

Read more »

money cash dividends
Dividend Stocks

How to Invest $10,000 Over the Next 5 Years

Those looking to put $10,000 to work in this rather uncertain and volatile market may want to consider these three…

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: 2 Incredible Deals to Buy in August

Here are two TSX stocks investors can consider for their TFSA contribution this year.

Read more »

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

These 3 TSX Stocks Have Doubled Over 3 Years: Can They Do It Again?

Three TSX stocks whose share prices have doubled in three years are well-positioned to repeat history and reward investors with…

Read more »