As most stocks are currently trading with rich valuations, it could be the right time for investors to buy some high-dividend-yielding TSX stocks. Here are three of the best Canadian dividend stocks that long-term investors can buy today.
Enbridge (TSX:ENB)(NYSE:ENB) is one of the best high-dividend-yielding stocks on the TSX. This Calgary-based energy infrastructure company’s liquids pipelines transport nearly 25% of the crude oil produced in North America.
This year, Enbridge stock has risen by 23.2% compared to a 16% rise in the TSX Composite benchmark. Last year, its dividend per share rose by about 9.8% YoY (year over year). With this, its stock has a solid dividend yield of 6.7% at the current market price of $50.15 per share. In the last five years, its dividend has increased by 74% to $3.24 per share in 2020 from $1.86 in 2015.
Enbridge YoY sales growth turned positive in the first quarter this year after declining in the previous four consecutive quarters. This positive growth trend in its sales is likely to sustain in the near term, as the demand for energy products continues to improve amid economic reopening. That’s why I recommend long-term investors consider buying this amazing dividend stock right now.
TC Energy stock
TC Energy (TSX:TRP)(NYSE:TRP) is another great energy stock to buy right now. It has a solid dividend yield of 5.6% at the current market price of $61.64 per share. The stock is currently trading with 19.1% year-to-date gains. While it remained mixed in the last couple of months, I expect it to outperform the broader market in the second half of 2021.
Last month, TC Energy confirmed the termination of the Keystone XL pipeline project — one of its key projects. The company had to cancel the plan to complete phase four of the Keystone XL pipeline project after U.S. president Joe Biden revoked the permit earlier this year.
Nonetheless, TC Energy is now focusing on advancing other under-development projects worth $7 billion. With continued growth from these projects, the company expects to deliver an average annual dividend-growth rate of 5-7%. In the last five years, Enbridge’s dividend has increased by 56% to $3.24 per share in 2020 from $2.08 per share in 2015.
BCE (TSX:BCE)(NYSE:BCE) has been another great TSX stock to buy today for dividend investors. In 2021 so far, its stock has underperformed the broader market, as it’s currently trading with only 12.6% year-to-date gains. Between 2015 and 2020, BCE’s dividend per share has risen by 28% to $3.33 from $2.60.
The largest Canadian communications company faced operational difficulties during the COVID phase last year. That’s why its 2020 revenue fell by 4.5% from a year ago to $22.9 billion. However, its sales growth rate is likely to improve this year as the pandemic-related challenges subside. Another key factor that could drive significant growth in BCE’s financials going forward could be its plans to improve its 5G network across Canada. The company expects its 5G network to cover more than 50% of the Canadian population by the end of 2021. As of July 2, BCE has a solid dividend yield of 5.7% at the current market price of $61.28 per share.
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. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.