3 Dividend Stocks I’ll Be Adding to My Portfolio in the Future

Are you in the market for great dividend companies? Here are three stocks I plan to add to my portfolio in the future!

| More on:
analyze data

Image source: Getty Images

Investing in dividend stocks is an excellent way to build wealth. In fact, dividend investing is a very popular strategy employed by Canadians. One aspect of dividend companies that makes them very appealing is that shareholders are awarded a monthly or quarterly payout just for holding shares. Over time, these payouts can significantly supplement or even replace an investor’s primary source of income. In this article, I’ll discuss three dividend stocks that I’ll be adding to my portfolio in the future.

This should be a foundational stock in your portfolio

There’s a select group of stocks that Canadians should consider buying when building a portfolio. One of which is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM). Through its subsidiaries, this company owns, invests in, and operates real assets. These can be described as physical assets within the real estate, infrastructure, and utility industries. In fact, Brookfield’s subsidiaries are so successful that an investment in any one of those companies would be an excellent decision as well.

Brookfield Asset Management claims a dividend-growth streak of nine years. That makes it a Canadian Dividend Aristocrat. Investors may notice that Brookfield’s forward dividend yield is quite low (0.93%). However, so is its payout ratio (28.25%). This suggests that Brookfield may be able to continue raising its dividend distribution over the next few years. An excellent dividend company led by an exceptional management team and that is well positioned for the future, Brookfield is a company you should consider buying today.

Looking forward to adding this stock to my portfolio again

In late 2019, I’d held shares of Fortis (TSX:FTS)(NYSE:FTS) in my portfolio. At the time, I was very focused on growing a dividend portfolio. However, with the opportunities that presented themselves during the COVID-19 market crash in 2020, I decided to switch to a growth-oriented portfolio. Despite a move that proved successful, I never forgot about Fortis. This is one of the most remarkable dividend companies on the TSX and one that I plan on adding to my portfolio again in the future.

Fortis is known for holding the second-longest active dividend-growth streak in Canada. At a staggering 47 years, Fortis’s management team has shown that it is capable of intelligently allocating capital over a long period. It’s this ability to grow dividend distributions, despite many periods of economic uncertainty, that leads me to believe that Fortis’s higher-than-preferred payout ratio isn’t an issue. There are so few companies that will ever manage to build a dividend-growth streak as long as Fortis has. Take note of this exceptional dividend stock.

Investing in the Canadian banks

Like many Canadians, I am fond of the Canadian banking industry. The highly regulated nature of that industry makes it very hard for smaller and newer competition to make a large impact on the industry. That makes an investment in the industry leaders very intriguing. Of the Big Five banks, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is my top choice.

Bank of Nova Scotia is another Canadian Dividend Aristocrat, claiming a dividend-growth streak of 10 years. With a forward dividend yield of 4.61%, it offers the largest payout of all the companies mentioned in this article. In addition, investors should also note that Bank of Nova Scotia’s payout ratio stands at 50.35%. This gives the company adequate room to continue growing its distributions in the future. A top company in a secure industry, this is one stock that’ll always be up for consideration in my portfolio.

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 Jed Lloren has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends BANK OF NOVA SCOTIA, Brookfield Asset Management Inc. CL.A LV, and FORTIS INC.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »