3 Top Dividend Stocks to Buy Right Now

Here are three top dividend stocks investors looking for long-term income generation may want to consider in this environment.

| More on:
TIMER SAYING TIME FOR ACTION

Image source: Getty Images

Surging volatility may be a concern for many investors. However, for those who want to generate income, the current stock market environment offers an outstanding opportunity. Dividend stocks provide yields that move inversely to stock prices and tend to grow faster in an inflationary environment. Those seeking yield have done better in the stock market in recent years, and that may continue for some time.

Those looking for top dividend stocks right now may want to consider these three companies. Let’s dive in.

Top dividend stocks: Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) stock should work well for a majority of the investment portfolios with a long-term horizon. That’s because Enbridge is more relatable to a utility stock than an energy stock. It features a highly predictable and low-risk business model. Since 2008, the adjusted EBITDA of Enbridge has been stable or grown over time. Additionally, this company has also achieved its guidance for 16 years.

This leading North America-based energy infrastructure organization is modernizing its pipeline systems to achieve net-zero emissions. This is a critical business that involves the transportation of 20% of the natural gas consumed in the United States. It also transports and exports 25% of the crude oil in North America. Besides these factors, the company is also growing its clean energy power portfolio that includes renewables and other low-carbon facilities.

This business model supports the company’s attractive 6.6% dividend yield, at the time of writing.

Fortis

One of the top dividend stocks in the utilities space, Fortis (TSX:FTS)(NYSE:FTS) remains a top pick of mine. Much of this view has to do with the company’s dividend-growth track record.

Fortis has managed to increase its dividend for 48 consecutive years. That’s an absolutely astonishing accomplishment, given all the market turbulence over the past five decades.

The company’s ability to do this is a result of a rock-solid, stable business model. As a regulated utility player, Fortis’s cash flows are about as stable as they come. This stock is about as close to a bond as an investor can get. With a yield of 3.6%, Fortis remains attractive, given the capital-appreciation upside this company provides.

Dream Industrial REIT

Finally, we have an interesting real estate play to talk about. Dream Industrial REIT (TSX:DIR.UN) is one of my top picks among real estate investment trusts right now.

Why’s that?

Well, this company’s diversified portfolio of industrial real estate is attractive. Industrial real estate is the backbone of logistics, supporting growth sectors such as e-commerce. Accordingly, those looking for an indirect way to play this growth may want to consider the industrial real estate game. In this space, Dream Industrial is a top-tier player with flagship properties in great jurisdictions across North America.

Thus, this company currently yields 4.3% and is one of the top dividend stocks on my watch list right now.

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 Chris MacDonald owns ENBRIDGE INC. The Motley Fool recommends DREAM INDUSTRIAL REIT, Enbridge, and FORTIS INC.

More on Dividend Stocks