The 3 Best Canadian Dividend Stocks to Buy in November 2021

These three Canadian dividend stocks don’t look overvalued right now, despite their strong year-to-date gains.

As Canadian stocks continue to rally in 2021, it’s becoming increasingly difficult for investors to pick great stocks to buy now. While most TSX stocks look expensive based on their current valuations, some dividend stocks still look really attractive given their improving future growth prospects and rising dividends. In this article, I’ll highlight three such amazing Canadian dividend stocks that passive-income investors can consider buying right now.

Keyera stock

Keyera (TSX: KEY) is my first pick on the list of top Canadian dividend stocks to buy in November. It’s an energy infrastructure firm with a market cap of $7.1 billion that mainly focuses on midstream business. KEY stock has a dividend yield of nearly 6%, as it trades at $31.83 per share.

While the company missed analysts’ earnings and revenue expectations in Q2, its long-term growth outlook remains unchanged. That’s why analysts expect its 2021 revenue to be around $4.35 billion — significantly higher than $3 billion in 2020 and $3.6 billion in 2019.

Moreover, its low leverage position and stable monthly dividends make Keyera stock even more attractive. While KEY stock has risen by 41% in 2021 so far, it’s still way below its pre-pandemic levels. That’s why long-term dividend investors may want to consider buying it now.

Pembina Pipeline stock

Pembina Pipeline (TSX: PPL)(NYSE: PBA) is another great Canadian dividend stock to own. At the current market price of $41.31 per share, PPL stock has a strong dividend yield of slightly more than 6%. Notably, the company increased its dividends by about 7% in 2020, despite facing COVID-19 challenges.

In the second quarter this year, Pembina’s revenue rose by 54% YoY to $1.95 billion, beating analysts’ estimates by a wide margin. A sharper-than-expected recovery in the global demand for energy products is helping the company’s top line grow fast. That’s one of the reasons why this Canadian dividend stock has risen by 37% this year so far. I expect the rising volumes across its pipeline systems and facilities to strengthen the company’s financial growth and help this its inch up further.

Enbridge stock

I would call the list of top Canadian dividend stocks incomplete today without including Enbridge (TSX: ENB)(NYSE: ENB) stock. The stock is currently trading at $52.24 per share with 28% year-to-date gains. While ENB stock has underperformed Pembina and Keyera in 2021, it offers a higher dividend yield of nearly 6.4% at the moment.

In 2021, Enbridge’s revenue is likely to rise by 14.3% YoY to $44.67 billion, while its earnings are expected to be 15% higher than a year ago. Rising oil prices, its improving operating performance, and high utilization rate are likely to help the company post better-than-expected financial growth in the coming quarters, I believe.

Last month, Enbridge acquired one of the top premier crude export facilities in North America, Moda Midstream, for about $3 billion. ENB expects this deal to advance its U.S. gulf coast export strategy. Also, its increasing investments in the renewable energy segment could help the company drive stronger growth in the long term.

The Motley Fool recommends Enbridge, KEYERA CORP, and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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