For individuals nearing retirement, finding additional income streams can be important. In that regard, I believe that investing in high-quality dividend stocks is an ideal solution for investors right now. Bonds yield almost nothing, and the quality of some Canadian dividend stocks today really shifts the risk-reward in favour of equities right now.
For those looking to build out their dividend-paying portfolio, here are three great options to consider right now.
Top dividend stocks: Scotiabank
Indeed, this company’s track record speaks for itself. This company showcased the strength of its core operations in the last quarter through its earnings. Besides delivering stellar bottom-line results, Scotiabank managed to nearly double its profits on a year-over-year basis. Accordingly, this company has a favourable cash flow position and strong liquidity.
At the time of writing, Scotiabank offers a dividend yield of 4.7%, which is quite attractive for income investors. Moreover, I believe that more dividend hikes could be on the horizon. That is, once regulators allow for said increases.
SmartCentres REIT (TSX:SRU.U) continues to be one of the dividend stocks I’m pounding the table on right now.
Well, this company’s retail-oriented real estate portfolio is best in class. The company’s anchor tenants provide incredible cash flow stability in a sector that’s still out of favour. Accordingly, investors are able to pick up an impressive yield of more than 6% at the time of writing — a yield that’s hard to find outside of non-investment grade stocks.
SmartCentres has found a way to not only navigate the pandemic well, but put forward bullish growth prospects in the years to come. This is a REIT with a portfolio of more than 150 high-quality assets at the time of writing. That said, with more properties under development, including the company’s flagship SmartVMC project slated for completion later this fall, I think this company’s cash flow outlook is rather bullish over the long-term.
When it comes to dividend stocks in the utilities sector, it’s hard to ignore Algonquin Power (TSX:AQN)(NYSE:AQN). Indeed, this company’s dividend yield of 4.4% is incredibly stable owing to the company’s regulated cash flows. Additionally, Algonquin’s growing renewables division is worth checking out from a growth perspective.
In my view, there are only a few stocks on the TSX today that can offer such a prudent mix of income, value, and growth right now.
Algonquin Power has grown both organically as well as via well-timed acquisitions over the past decade. I expect this trend to continue, and rate this one of the top dividend stocks to consider right now.