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5 Canadian Stocks Under $100 That Can Earn You a Lifetime Dividend

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The pandemic has brought a sea change impact on the way millenials use their money. The overspending millennials of the pre-COVID world have now become spendthrifts. They are looking for ways and means to earn money through risky investments like short squeeze and cryptocurrency. If you have burnt your cash in these risky bets and are now looking for some stable returns, here are five stocks under $100 that can earn you dividends for a lifetime. 

SmartCentres REIT 

One company that pays a monthly dividend is SmartCentres REIT (TSX:SRU.UN), as its business model allows it to do so. It earns revenue from the monthly rent its tenants pay. But SmartCentres is at a higher risk of dividend cuts as its properties are mostly retail stores.

As we witnessed in the pandemic, many retail stores shut down significantly, even impacting SmartCentres’ revenue. But it survived because of its high exposure to Walmart. This helped the REIT hedge itself against the most major crisis. 

SmartCentres offers a 6.09% dividend yield and has a history of paying a regular monthly dividend for over 10 years. It is developing multi-use properties that will help it diversify rental income and increase dividends in the long term. 

BCE stock 

BCE (TSX:BCE)(NYSE:BCE) has been paying quarterly dividends since 1983 and even increased them consecutively for the last 12 years. Over the years, the company has built Canada’s largest telecom infrastructure and has been at the top of the latest technology. It enjoys stable cash flow from subscription money that it distributes to shareholders through dividends. 

BCE has accelerated its investment in 5G and expects to see the 5G revenues pour in 2021. The company will release its second-quarter earnings on August 5. I expect the 5G revenues to accelerate it cash flows in the coming years, enabling it to continue growing dividend in the coming years. For little above $61/share, you can lock in a lifetime dividend yield of 5.68%. 

Canadian Utilities 

Canadian Utilities (TSX:CU) generates, stores, transmits and distributes electricity and natural gas to households in various cities of Canada. It also processes industrial water. This integrated energy business model helps it pay regular quarterly dividends. The company keeps building infrastructure, bringing in new sources of cash flow. It has increased its dividend at an average annual rate of 8% in the last 10 years.

The electricity demand will only grow as the world goes digital. The ever-growing need for electricity and natural gas will keep cash flowing in for Canadian Utilities for years. For little above $35/share, you can lock in a lifetime dividend yield of 5.02%. 

TransAlta Renewables stock

Another company that will benefit from the growing electricity demand is TransAlta Renewables (TSX:RNW). The company has a diversified portfolio of renewable power-producing assets (wind, hydro, solar, and gas) in Canada and Australia. These assets have a weighted average contract life of about 12 years and enjoy strong government support. Subsidies and faster approvals are shortening the project churn-out time.

TransAlta Renewables has been paying regular monthly dividends since September 2013. As the energy sector moves to greener options, the company has strong growth in the long term. For around $22/share, you can lock in a lifetime dividend yield of 4.29%. 

Pembina stock

Another energy infrastructure company paying regular monthly dividends since 1998 is Pembina Pipeline (TSX:PPL)(NYSE:PBA). The company operates oil and natural gas pipelines and earns revenue from the toll money. It is becoming increasingly difficult to build new pipelines. Hence, it is looking to acquire Inter Pipeline to get access to Western Canada regions. 

Acquisitions will bring significant synergies for the pipeline operator. However, it is contesting with Brookfield Infrastructure Partners for IPL. Acquisition or no acquisition, Pembina has $7 billion worth of projects under development that would bring in more cash flows once operational. For a little above $39/share, you can lock in a lifetime dividend yield of 6.42%. 

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 Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners, PEMBINA PIPELINE CORPORATION, and Smart REIT.

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