Dividend stocks are great to hold in your portfolio during a market downturn. It’s been shown that dividend stocks tend to be more stable during periods of market uncertainty. However, an aspect that makes dividend stocks even more appealing is that they pay shareholders on a regular basis! In this article, I’ll discuss three excellent dividend stocks that also pay shareholders well. Holding these stocks in your portfolio could accelerate your way to financial independence.
A popular industry among Canadians
When Canadians look for dividend stocks, it doesn’t take long for investors to consider the banking industry. There are a few reasons for this. Most importantly, companies within the banking industry have very easy businesses to understand. Another reason why Canadians like to invest in the banking industry is because the banks within Canada are highly regulated. This makes it very difficult for smaller competitors to displace industry leaders. Within that industry, my top pick is Bank of Nova Scotia (TSX:BNS)(NYSE:BNS).
Bank of Nova Scotia differentiates itself from its peers because of its exposure to the Pacific Alliance. This provides the company with the potential to see tremendous growth over the next decade. However, this article is about dividends, so let’s get to that. Bank of Nova Scotia is listed as a Canadian Dividend Aristocrat, having increased its distribution for over a decade. This stock offers a 4.64% forward yield. Last month, Bank of Nova Scotia announced an 11% increase in its distribution.
This company will help power our society
There are few dividend stocks that truly have exciting futures ahead. One company that comes to mind is Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP). Currently, there’s a lot of pressure from governments and large enterprises to turn to renewable sources of energy. As a result, companies that offer renewable utilities could see a lot of attention over the coming years. However, it’s difficult for companies to scale in this industry. That’s where Brookfield Renewable shines.
It operates a portfolio of assets capable of producing more than 21,000 MW of power. This makes it one of the largest producers of renewable energy in the world. In terms of its dividend, Brookfield Renewable is equally impressive. Another Dividend Aristocrat, Brookfield Renewable has been increasing its distribution at a CAGR of 6% for over a decade. Its forward dividend yield is currently 3.62%, making it a very appealing dividend stock.
This company does a lot more than you think
Finally, investors should consider adding Telus (TSX:T)(NYSE:TU) to their portfolio. Canadians know Telus as being a large telecommunications company. In fact, it operates the largest telecom network in Canada. However, Telus has so many more business segments that investors should pay attention to. I find its healthcare segment very interesting. The company offers many services to healthcare professionals and also has a solid telehealth product on the market.
In terms of its dividend, Telus is also listed as a Canadian Dividend Aristocrat. The company has raised its dividend for the past 17 years. Currently, Telus offers a forward dividend yield of 4.45%, which falls within the 3-5% range that I tend to look for in dividend stocks. If you’re looking for a reliable dividend stock to add to your portfolio, consider Telus.
