3 Top Canadian Dividend Stocks to Buy Right Now

Looking to build a dependable passive income stream? Here are three dividend stocks that should be on your radar.

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It’s been an incredibly strong year for Canadian stocks. The S&P/TSX Composite Index is up over 15% since the beginning of the year. 

Many top growth stocks are soaring at all-time highs, but so are their valuations. It’s not uncommon to see a growth stock trading at a price-to-sales ratio above 30. 

While I certainly own my share of high-priced growth stocks in my portfolio, the market’s high price has me searching for more dependability in my next buy. 

Here are three top dividend-paying companies that are at the top of my watch list right now. 

Bank of Montreal

The Big Five may be all the trading near all-time highs, but they’re still an affordable buy today. They also own some of the top dividends you’ll find on the TSX.

Shares of Bank of Montreal (TSX:BMO)(NYSE:BMO) are up a market-beating 30% year to date. Even after its impressive run through the first six months of the year, the dividend stock is still only trading at a forward price-to-earnings ratio of barely over 10. 

But it’s the bank’s dividend that has it on my radar right now. Its 3.3% yield isn’t the highest you’ll find on the TSX, but its payout streak is. 

Bank of Montreal has been paying a dividend to its shareholders for more than 190 years. So if you’re looking to be a dependable passive income stream, this stock should be at the top of your list.

Brookfield Infrastructure Partners

This dividend stock may demand a steeper price, but its growth potential should help offset that.

Shares of Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) are up a market-beating 100% over the past five years. That’s good enough for just about doubling the growth that BMO stock has delivered. 

Brookfield Infrastructure Partners can’t match a dividend payout streak of 190 years, but it does yield close to 4%. At today’s price, the stock’s annual dividend earns shareholders a yield of 3.7%.

For any investor looking for exposure to the real estate market, this is an excellent way to do so. Brookfield Infrastructure Partners has a global presence, with investments across a wide range of businesses, including transportation, utilities, and data centres, to name a few.

Manulife Financial

Last on my list is a Dividend Aristocrat with a 4.5% yield. It may not light the world on fire with its growth, but it’s a great option for anyone looking to build a passive income portfolio.

Manulife Financial (TSX:MFC)(NYSE:MFC) is the largest insurance provider in the country. It’s not the fastest-growing industry, but it is a reliable one. It’s also an industry that I don’t see disappearing anytime soon.

Shareholders of this dividend stock sacrifice stock price appreciation for a top dividend yield. At today’s stock price, Manulife Financial’s annual dividend of $0.90 per share yields just above 4.5%. 

The dependability of the insurance industry is why I have Manulife Financial on my radar right now. I’m betting that the demand for insurance will be just as high in a decade’s time as it is today.  

The reason why that’s important is that I’m looking to build a passive income stream that I can count on. And as long as consumers and businesses across the globe depend on insurance policies, this is one dividend that I’m comfortable counting on.

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 Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.

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