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.
