The 3 Best Dividend Stocks to Buy Before Christmas

Investors should look to buy top dividend stocks like Suncor Energy Inc. (TSX:SU)(NYSE:SU) before Christmas arrives.

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Canadian investors have been presented with new challenges in the final weeks of 2021. The emergence of the Omicron COVID-19 variant sparked a selloff in domestic and global markets. However, recent reports have shed a more encouraging light, as Omicron appears to induce milder symptoms than its predecessors. Today, I want to look at three top dividend stocks to snatch up before the holiday season. In this climate, it is worth grabbing dependable income-yielding equities at a discount.

Why I’m buying energy stocks after the market pullback

Last month, I’d suggested energy stocks that still looked like a strong buy in the final stretch of the year. Suncor (TSX:SU)(NYSE:SU) is still one of my favourite dividend stocks to target. Its shares have climbed 44% in 2021 as of early afternoon trading on December 9. Meanwhile, the stock has dropped 5.5% in the month-over-month period.

The company released its third-quarter 2021 earnings on October 27. It reported strong total upstream production of 698,600 barrels of oil equivalent per day (boe/d). Meanwhile, Suncor delivered record operating earnings of $1.04 billion, or $0.71 per common share in Q3 2021. Suncor looks like a strong bet, as the oil and gas sector has bounced back nicely during the global economy recovery.

Shares of this dividend stock possess a favourable price-to-earnings (P/E) ratio of 19. It recently hiked its quarterly dividend payout to $0.42 per share, which represents a strong 5.4% yield.

This top dividend stock just capped off a strong 2021

Scotiabank (TSX:BNS)(NYSE:BNS) is another top dividend stock investors should consider after Canadian banks passed through the final earnings season of 2021. Shares of Scotiabank have climbed 25% in 2021 at the time of this writing. The bank unveiled its final batch of 2021 earnings on November 30.

In Q4 2021, Scotiabank delivered adjusted net earnings of $2.71 billion, or $2.10 per share, compared to $1.93 billion, or $1.45 per share, in the previous year. Its Canadian Banking segment posted adjusted earnings growth of 60% in the year-over-year period to $4.17 billion for the full year. Like its peers, it benefited from improved volumes and a huge drop in provisions set aside for credit losses.

This dividend stock now offers a quarterly dividend of $1.00 per share. That represents a solid 4.6% yield.

One more dividend stock to snatch up before the holidays

Northwest Healthcare REIT (TSX:NWH.UN) is a real estate investment trust (REIT) that offers exposure to a global portfolio of high-quality healthcare real estate. This has proven to be an excellent defensive dividend stock over the course of the COVID-19 pandemic. Its shares are up 8.7% in the year-to-date period.

I’d suggested that investors hungry for passive income should snatch up this REIT in October. Northwest Healthcare saw its total assets under management (AUM) jump 15% year over year to $8.5 billion. Shares of this REIT last had a very attractive P/E ratio of 6.6. It offers a monthly dividend of $0.067 per share. That represents a robust 5.9% yield.

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

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