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Here Are My Favourite Dividend Stocks to Buy in July

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The S&P/TSX Composite Index rose 18 points on Tuesday, July 6. However, energy, health care, and base metals all took a hit. Canadian stocks have put together a strong run since suffering from a sharp market pullback in February and March of 2020. Now, there is increased enthusiasm, as Canada reopens and chugs forward with its vaccine rollout. Investors should have faith in the economic rebound, but they should also be cautious as equities look broadly overvalued. Today, I want to look at top dividend stocks to stash in the month of July.

You can rely on this utility for the long term

Emera (TSX:EMA) is a Nova Scotia-based company that is engaged in the generation, transmission, and distribution of electricity to various customers. Shares of this dividend stock have climbed 6.1% in 2021 as of close on July 6. The stock is up 5.6% year over year.

The company released its first-quarter 2021 results on May 12. It reported adjusted net income of $243 million or $0.96 per share — up from $193 million, or $0.79 per common share, in the prior year. Emera has progressed with its $7.4 billion capital-investment plan from the 2021 through 2023 period. This capital plan aims to significantly bolster its rate base, which will, in turn, support dividend growth.

Shares of this top dividend stock possess a solid price-to-earnings ratio of 20. Emera last paid out a quarterly dividend of $0.637 per share. That represents a 4.4% yield.

Bet on green energy with this top dividend stock

Back in March, I’d discussed how Canadians could seek out exposure to the green energy space. TransAlta Renewables (TSX:RNW) is a Calgary-based company that develops, owns, and operates renewable power-generation facilities. Its shares have dropped 5.9% in 2021 at the time of this writing.

In Q1 2021, TransAlta delivered comparable EBITDA growth of 4% to $123 million. Cash available for distribution was largely in line with the previous year. TransAlta’s facilities were able to remain fully operational during the COVID-19 pandemic. This is another utility-based equity, which qualified as an essential service during the crisis.

TransAlta has had a tough first half of 2021, but the dividend stock is still up 48% year over year. Investors can count on its monthly distribution of $0.078 per share, representing a solid 4.4% yield.

One more dividend stock to snag in July

Cogeco Communications (TSX:CCA) is the last dividend stock I want to focus on in this piece. I’d focused on BCE, another top telecom, earlier this week. Shares of Cogeco have climbed 23% in 2021 as of close on July 6. The stock is up 19% from the prior year.

Investors can expect to see Cogeco’s next batch of results by the middle of this month. In Q2 FY2021, the company reported adjusted EBITDA growth of 10.7% to $307 million. Meanwhile, it achieved revenue growth of 8.2% to $634 million. Like its peers, Cogeco benefited from a jump in broadband services revenue.

Shares of this dividend stock last had a favourable P/E ratio of 14. It offers a quarterly dividend of $0.64 per share. That represents a 2.1% yield.

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 Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool recommends EMERA INCORPORATED.

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