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.

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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.

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