The 3 Best Canadian Dividend Stocks to Buy in November 2021

It’s never been easier to build a passive-income stream. These three dividend stocks are a perfect place to start.

Image source: Getty Images

All it takes today to build a passive-income stream is to own a couple of dividend stocks. In fact, all it takes is one, but you’ll likely want to have a more diversified portfolio than just one company. 

The only cost of creating a passive-income stream from dividend stocks is the price of buying shares of the company. Aside from that, there’s no additional cost to maintain the portfolio. So, if you’re looking to earn some additional cash on the side, dividend investing may be for you.

No dividend is ever guaranteed, which may worry some passive-income seekers. That being said, there are plenty of TSX stocks with track records spanning decades of paying out dividends to shareholders. 

In addition to passive income, dividend stock investors have the opportunity to earn capital gains. If the company’s share price increases, that can potentially be additional income for the shareholder.

If I was planning on building a passive-income stream, I’d have these three top dividend stocks on my radar. Together, the basket of three companies can provide investors with passive income, growth potential, and dependability.   

A top dividend stock that’s on sale

This energy stock is the lowest yielding of the three companies on my list. Its low yield is made up by its long-term, market-beating growth potential.

At today’s stock price, Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) dividend yields just above 3%. On top of that, the dividend stock is up a market-crushing 145% over the past five years. 

Brookfield Renewable Partners’s $13 billion market cap ranks it as a global leader in the renewable energy space. The company owns and operates a wide range of different green energy facilities, serving customers across the globe. 

Down more than 20% from all-time highs, even growth investors would be wise to have their eye on this company. 

There are more reasons than one to own a Canadian bank

Passive income isn’t the only reason to own shares of a Canadian bank. Whether you’re looking for a top dividend yield, growth, or dependability, the Big Five have you covered.

At a yield of 4.3%, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is the highest-yielding Canadian bank. It’s also the only bank among the Big Five yielding above 4% at today’s stock price.

Not only is its yield impressive, but its payout streak is also one of the longest you’ll find on the TSX. The bank has been paying a dividend to its shareholders for close to two centuries.  

At a forward price-to-earnings ratio of barely over 10, long-term value investors will even want to have this dividend stock on their watch list.

Passive income that you can count on

Last on my list is a dependable utility company. Fortis (TSX:FTS)(NYSE:FTS) likely won’t be the fastest-growing company in your portfolio, but it could be the most reliable. Predictable revenue streams are one of the main reasons why utility stocks are low-volatile investments. 

At today’s stock price, Fortis’s annual dividend of $2.14 per share is good enough for a 3.8% yield.

Its payout streak cannot match that of Bank of Nova Scotia, but I wouldn’t bet on the company cutting its dividend anytime soon. What I would bet on is the dividend stock to continue to pay a dividend for many more years with increases along the way. 

If your main goal is to build a dependable passive-income stream, Fortis is a perfect pick.

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 Nicholas Dobroruka owns shares of Brookfield Renewable Partners. The Motley Fool recommends BANK OF NOVA SCOTIA 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 »