2 Canadian Stocks That Deliver Safe Dividends

These two Canadian dividend stocks deliver consistent payouts and could be ideal for income-seeking investors.

| More on:
Canadian Dollars

Image source: Getty Images

Dividend investing in the right income-generating assets has proven itself to be a reliable way for Canadian investors to earn a steady stream of passive income. Growing concerns over the Omicron variant of COVID-19 have sent equity markets into another state of volatility. At writing, the S&P/TSX Composite Index has fallen by almost 4.7% from its November 12 levels.

Investors seeking safety and reliability for their investment portfolios amid rising volatility and uncertainty should consider adding income-generating assets that can provide them with a degree of capital protection. Today, I will discuss two Canadian dividend stocks that can deliver safe dividends. It might be worth your while to buy shares of these two dividend-paying companies.


BCE Inc. (TSX:BCE)(NYSE:BCE) stock and its peers in the Canadian telecom industry have proven themselves as mainstays amid an increasingly digitized landscape. The company’s increasing presence in the growing 5G industry, expanding fiber and rural wireless home internet networks throughout the country, and consistent demand for its services have positioned it well for healthy and stable cash flows.

BCE stock boasts a lengthy dividend-paying streak that began in 1881, and its dividend streak has stood the test of time. The last decade has seen the company increase its shareholder dividends at a compounded annual growth rate of 6.7%. BCE stock is trading for $65.79 per share at writing, and it boasts a juicy 5.32% dividend yield that you could lock into your portfolio today.

Algonquin Power & Utilities

Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) stock is another company that provides an essential service to its customers. The company is a low-risk business that provides utility services through highly rate-regulated and long-term contracted renewable energy assets. The company’s stable cash flows and growing portfolio through strategic acquisitions have allowed its management to consistently deliver dividend hikes to its shareholders.

The company has recently managed to sign a deal to acquire two companies from American Electric Power Company for a deal worth an estimated US$2.85 billion. Its acquisition of Kentucky Power Company and Kentucky Transmission Company could set it up for a significant boost to its cash flows in the coming years.

At writing, Algonquin Power and Utilities stock is trading for $17.93 per share, and it boasts a juicy 4.79% dividend yield that the company can comfortably sustain and increase in the coming years.

Foolish takeaway

A combination of the right dividend stocks in your self-directed investment portfolio can help you create a revenue stream that can keep lining your account balance with more cash through shareholder dividends even during volatile operating environments. You can consider reinvesting the shareholder dividends through a dividend reinvestment plan.

Purchasing more shares of the dividend-paying companies can help you unlock the power of compounding to accelerate your wealth growth. BCE stock and Algonquin stock could be ideal assets to consider for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Glass piggy bank
Dividend Stocks

How to Accelerate Your TFSA Returns From Dividend Stocks

The stock market saw a correction in January, as investors booked profits ahead of the central bank’s interest rate hikes. The TSX …

Read more »

money cash dividends
Dividend Stocks

Top 3 Dividend Stocks in Canada for 2022

Canada is home to some of the best dividend stocks in the world. With finance, telecoms, and energy dominating the …

Read more »

calculate and analyze stock
Dividend Stocks

2 Top TSX Stocks to Put on Your TFSA Buy List

TFSA investors are searching for undervalued TSX stocks to buy that have the potential to deliver big gains in 2022. …

Read more »

Payday ringed on a calendar
Dividend Stocks

Get Unbelievable Monthly Income With High-Yield Dividend Stocks

The only thing better than a dividend stock is a stock that pays dividends every month. For people who live …

Read more »

gas station, convenience store, gas pumps
Dividend Stocks

1 Key Catalyst Investors in Couche-Tard Stock Need to Watch

One of the top value stocks on the TSX, Alimentation Couche-Tard (TSX:ATD) has been a strong performer over the past year. …

Read more »

Value for money
Dividend Stocks

2 Top Value Stocks I’m Looking to Buy Right Now

Value investing is a lot more than just grabbing stocks that look inexpensive. The shares of an organization in permanent …

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

RRSP Investors: 2 Top Canadian Dividend Stocks to Buy for Total Returns

Canadian savers are searching for good TSX stocks to buy inside their self-directed RRSP that pay reliable dividends and can …

Read more »

Cogs turning against each other
Dividend Stocks

2 Dividend Stocks That Could Stabilize Your TFSA During a Market Correction

A common strategy for investing during a market downturn is to allocate a greater proportion of your portfolio towards dividend …

Read more »