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3 of the Best TSX Dividend Stocks to Buy This Week

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As Canadian stocks continue to inch up, it’s becoming increasingly difficult for investors to pick good dividend stocks to invest their hard-earned money. While many stocks have already seen a big rally in the first half of the year, some stocks still have room to rise further in the coming months.

Here’s a list of three amazing TSX stocks that not only pay high dividends but also could rally in the second half of the year.

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) is one of my favourite high-dividend-paying Canadian stocks to buy in 2021. Its stock has an attractive dividend yield of 6.8% at the current market price of $49.16 per share. Last year, the company rewarded its investors with a solid dividend of $3.24 per share — up about 9.8% YoY (year over year). Interestingly, Enbridge’s dividends have increased by nearly 74% in the last five years.

Apart from paying high dividends, a strongly positive trend in its fundamentals makes Enbridge stock worth buying right now. In 2020, the company’s revenue fell sharply due to a sudden slump in energy products’ demand along with COVID-19-related operational challenges. However, Enbridge’s sales already started improving in the first quarter this year. Analysts expect its YoY sales growth rate to improve further in the coming quarters. Currently, Enbridge stock is trading with about 21% year-to-date gains. Long-term investors can buy this amazing dividend stock to get high returns on their investment.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another amazing energy company on TSX that rewards its investors with high dividends. In 2020, its dividend increased by 6.8% YoY to $2.52 per share. As of June 28, it has a solid dividend yield of 6.4% at the current market price of $39.57 per share.

Pembina Pipeline’s adjusted earnings rose by 2.0% YoY to $0.51 per share in the March quarter. Its revenue in the same quarter increased by 22.4% from a year ago to $2 billion — also 19.0% higher than analysts’ consensus estimate of $1.7 billion.

In addition, its dividend-growth rate in the last five years has been impressive. Pembina’s dividends rose to $2.52 per share in 2020 — up 40% from $1.80 in 2015. You can add this high-dividend-yielding stock to your portfolio today to get handsome returns.

Keyera stock

Keyera (TSX:KEY) is another Canadian energy firm with a handsome dividend yield of 5.8% at the current market price of $33.11 per share. While Keyera is much smaller as compared to Enbridge and Pembina Pipeline based on market capitalization, its sales are expected to significantly improve this year.

In May, Keyera partly raised its 2021 guidance — mainly due to its strong year-to-date financial performance and negotiations for natural gas liquids supply agreements. Bay Street analysts expect the company’s revenue to rise by nearly 34% this year to $4 billion. Higher sales are expected to boost Keyera’s adjusted earnings to $1.75 per share in 2021 — significantly higher than only $0.28 in 2020. While its stock has already risen by 46% in the first half of 2021, it still has room to inch up further in the second half of the year.

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 KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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