The 3 Best TSX Dividend Stocks to Buy: A Cut Above the Rest

In this article, I’ll highlight three of the best high-dividend-yielding TSX stocks to buy today from different industries.

Motley Fool investors always prefer to invest in fundamentally strong dividend stocks with high yields. This way, investors can generate passive income and be confident to invest the other part of their stock portfolio in some cheap high-growth stocks. In this article, I’ll highlight three of the best high-dividend-yielding TSX stocks from different industries. These are some of the best dividend stocks that will help you generate extra income, and their strong fundamentals could allow you to remain worry-free, even in tough economic times.

Bank of Nova Scotia stock

Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is my first pick on the list of the best Canadian dividend stocks right now. Its stock is currently trading at $77.69 per share with about 13.3% year-to-date gains, and it offers a dividend yield of 4.6%.

Last year, Scotiabank’s core banking operations remained under pressure due to the global pandemic. On the positive side, significantly improved performance of its wealth management and capital market segments kept investors’ confidence alive. In the last couple of quarters, Scotiabank’s earnings growth has remained solid. This consistent growth should take its fiscal year 2021 earnings beyond the pre-pandemic levels.

Notably, Scotiabank’s dividend per share increased by more than 32% in the five years between 2015 and 2020. Moreover, its strong balance sheet and diversified financial services offerings make BNS stock worth considering for dividend investors right now.

Enbridge stock

Enbridge (TSX: ENB)(NYSE: ENB) is one of the top Canadian energy sector companies to invest in right now. The company’s large network of liquids pipelines transport about 25% of crude oil produced in North America and transports about 20% of total natural gas consumed in the United States. Its resilient business model and excellent track record of creating value for long-term investors make this TSX dividend stock even more attractive.

Despite facing COVID-19-related challenges in 2020, Enbridge’s strong cash flows and strong balance sheet allowed it to increase its dividend by nearly 10%. Currently, its stock has a solid dividend yield of 6.6% at the market price of $50.50 per share.

Earlier this month, Enbridge acquired one of the top U.S. Gulf Coast light crude export platforms, Moda Midstream Operating LLC. This acquisition is aimed to advance ENB’s U.S. gulf coast strategy, which could accelerate its financial growth in the coming years.

BCE stock

My third pick in the list of top Canadian dividend stocks to buy is BCE (TSX: BCE)(NYSE: BCE) from the communications sector. Its stock has risen by 19% this year so far to $65.15 per share. The stock offers a handsome dividend yield of 5.4% at the moment.

Despite maintaining a strong position in the Canadian communications space for a long period, BCE has recently increased its focus on investing in next-generation digital infrastructure to drive higher growth. These investments are likely to help the company expand its augmenting network capacity and mobile 5G coverage in the coming years.

While multiple COVID waves have slowed its financial recovery lately, its profitability and long-term earnings-growth outlook remain solid. These are some of the positive reasons long-term dividend investors may want to add BCE stock to their portfolios today.

The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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