Canadian Thanksgiving: 2 Dividend Stocks to Be Thankful for

These two top Canadian dividend stocks offer investors excellent opportunities to grow their capital over the long run.

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This Thanksgiving, as usual, there’s a lot for all of us to be thankful for. And in addition to family, friends, and good health, we can also appreciate all the opportunities we have to grow our money and earn financial freedom, such as investing in high-quality Canadian stocks. These days, markets are more efficient than ever, allowing Canadians to buy hundreds of different growth, dividend, and value stocks for their portfolios.

We should be thankful it’s this easy for us to put our hard-earned money to work for us. In the past, it was never as easy as trading online for minimal commission costs.

In addition, with tools like the TFSA, we have even more potential to save and grow our money even faster than ever before. As long as you can find the right stocks to buy, you can set yourself up for financial freedom faster today than you ever could before.

So, if you’re looking for some high-quality stocks to help grow your hard-earned money, here are two top Canadian dividend stocks that I’m thankful for.

A top Canadian energy business

One of the top energy stocks in the country, and a business that I’m sure many Canadian dividend investors are thankful for is Freehold Royalties (TSX:FRU).

Freehold is a great way to gain exposure to the energy industry. The company owns a tonne of land in western Canada and parts of the U.S., where other companies produce energy and then pay a royalty to Freehold.

This not only diversifies all its revenue and helps lower risk for the company, but it also allows it to benefit significantly when commodities prices are rising. So far, year to date, the stock is up by over 120%. But because it’s been able to increase its monthly dividend on four separate occasions over the last 12 months, it still offers an attractive yield of 5.2%

Plus, as energy prices continue to rise and Freehold expands its assets with more land acquisitions, there is a tonne of potential for more dividend increases to come.

So, if you’re looking for a top Canadian dividend stock to buy, Freehold Royalties is one of the best to consider.

A top Canadian utility stock for dividend investors

Another high-quality Canadian dividend stock is Algonquin Power and Utilities (TSX:AQN)(NYSE:AQN). What I’m most thankful for about Algonquin is the fact that it’s an excellent company offering investors both a tonne of resiliency as well as a tonne of long-term growth potential.

First and foremost, Algonquin is a utility stock. Two-thirds of its business comes from its utility segment. This is important, because utility operations are highly safe and are what underpins Algonquin’s consistently growing dividend. The company serves hundreds of thousands of customers across several states, offering gas, water, and electricity services.

The other third of its business comes from its renewable energy segment. This industry offers a tonne of synergies with utilities and a tonne of long-term growth potential, making Algonquin one of the most attractive Canadian dividend stocks to buy today.

Plus, in recent weeks, the stock has sold off slightly, offering investors an attractive entry point today. The stock is currently trading at its 52-week low and offering a dividend of almost 4.8%.

So, if you’re looking for a high-quality investment to buy for the long run, Algonquin is a company you’ll be thankful you bought.

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 Daniel Da Costa owns shares of ALGONQUIN POWER AND UTILITIES CORP. and FREEHOLD ROYALTIES LTD. The Motley Fool recommends FREEHOLD ROYALTIES LTD.

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