Dividend stocks are among the best options for investors looking for an antidote to inflationary concerns. Companies that provide income right now may be viewed more positively than those not paying a dividend. That’s because equities, which haven’t been pitted against fixed income in some time (remember the “TINA” trade?), are likely to be compared to some rather intriguing yields in the years to come.
These three companies are among the dividend stocks I think are worth considering. Let’s dive into why I think these stocks are worth a buy on this market dip right now.
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Top dividend stocks: Algonquin Power
Algonquin Power (TSX: AQN)(NYSE: AQN) is the owner of a low-risk business that supports higher dividend payments and delivers resilient cash flows. The company’s long-term contracts and regulated asset base have helped it pay and raise dividends consistently. Keep in mind that over the last 11 years, this company has returned increasing dividends to its shareholders.
Forecasts suggest that Algonquin’s rate base is likely to rise at a double-digit pace going forward. This will very likely drive its earnings, EBITDA, and future dividends by a similar rate. Additionally, the company’s growing renewable power-capacity expansion and strategic capital allocation bode well for Algonquin’s growth.
Algonquin plans to allocate roughly $12.4 billion over the coming five years, expanding its utility and power-generation assets. Besides these investments, the company’s strategic acquisitions, solid underlying businesses, and favourable rate revisions can help boost its financials in the next quarters.
All in all, I consider Algonquin Power one of the top dividend stocks in Canada right now.
Toronto-Dominion Bank
Out of the Big Six Banks, Toronto-Dominion Bank (TSX: TD)(NYSE: TD) should be a top choice for investors looking for blue-chip dividend stocks.
Since its incorporation, this company has paid dividends every year, thereby becoming a Dividend Aristocrat. Given TD’s rather incredibly long history, these dividends over time become even more impressive.
That’s not all. This top TSX stock has solid growth opportunities on the horizon. TD Bank has expanded into credit card partnerships, online, and in the United States. This company is a leader in other market segments such as brokerage and loan payment plans. All in all, I like how TD is positioned, both for income and growth over the long term.
Canadian Apartment REIT
Real estate is a top sector where investors can find Canadian stocks to own through retirement. Typically, real estate investment trusts (REITs) are exceptionally reliable and provide noteworthy income growth. And among the various real estate dividend stocks I’ve been bullish on of late, Canadian Apartment REIT (TSX:CAR.U) is certainly a solid pick.
I like residential real estate, as a means of generating cash flow. Folks need to pay their rent – it’s a must. Other asset classes may not have the same occupancy rates or delinquency rates Canadian Apartment REIT does. In fact this company’s fundamentals are among the best in the business.
CAPREIT is the owner of properties throughout Canada and Europe as well. This provides immense geographic diversification, further lowering the company’s risk profile for those who are more risk-averse.
Each of these stocks makes great additions to a well-diversified portfolio. Those seeking long-term dividend stocks to buy now and forget about can’t go wrong with any of these.
