3 Top Dividend Stocks to Buy With $300

Thanks to their resilient cash flows, these companies could continue to pay dividends amid all market conditions.

| More on:
money cash dividends

Image source: Getty Images

While the list of TSX-listed dividend-paying stocks is long, companies that can afford to pay regular dividends appear attractive amid high inflation, rising interest rates, and an uncertain economic environment. I’ll focus on three Canadian corporations that are reasonably priced, offer yields of at least 4.5%, and have strong histories of increasing their dividends (at least 20 years in a row). Here are my top picks. 

TC Energy  

There are multiple reasons why shares of TC Energy (TSX:TRP)(NYSE:TRP) are a must-have to generate a steady inflow of cash amid all market conditions. TC Energy’s regulated and contracted assets account for most of its profits (generates about 95% of its EBITDA from regulated assets and long-term contracts) and support higher dividend payouts. 

Thanks to its high-quality earnings base, TC Energy has raised its dividend for 22 consecutive years. Further, its dividend has a CAGR of 7% during the same period. 

Looking ahead, TC Energy expects 3-5% annual growth in its future dividend and is currently offering a well-protected yield of 4.9%. This energy infrastructure company could continue to generate steady cash flow due to its resilient portfolio of regulated and contracted assets. Moreover, a high asset utilization rate and $24 billion secured projects augur well for growth. Further, revenue escalators and productivity savings are expected to support its profitability and future payouts. 


Enbridge (TSX:ENB)(NYSE:ENB) is another top investment to generate a growing cash inflow. Its robust dividend payment history (67 years in a row), consistent dividend growth (grown dividend at a CAGR of 10% since 1995), high yield of 5.9%, and resilient business model make it a top investment to generate worry-free income

Notably, Enbridge projects 5-7% growth in its distributable cash flow per share, which is achievable given the strong demand, recovery in mainline volumes, and ongoing momentum in the core business. Enbridge’s diverse cash flow streams, contractual arrangement, and strong capital program support higher payouts. 

Further, strategic acquisitions and cost-savings initiatives bode well for future earnings and dividend growth. Also, its payout ratio of 60-70% of distributable cash flows is sustainable in the long run. 

Canadian Utilities

With a track record of increasing its dividend for 49 years, Canadian Utilities (TSX:CU) is among the top stocks to generate reliable income irrespective of market conditions. Its resilient regulated and contracted assets generate stellar cash flows that drive higher dividend payments. Further, Canadian Utilities offers a solid dividend yield of 4.5%, which is reliable. 

Canadian Utilities is poised to consistently enhance its shareholders’ value in the coming years. Its continued investments in regulated and contracted assets are driving its high-quality earnings base and dividend. 

Overall, its strong dividend payment history, low-risk business, rate base growth, and cost optimization bode well for growth.

Bottom line

The long dividend payment history, consistent dividend growth, and resilient cash flows make the shares of these companies attractive for generating steady passive income. Further, their high yields and the sustainable payout ratio are encouraging. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge.

More on Dividend Stocks

investment research
Dividend Stocks

Better Buy: Scotiabank or TD Bank Stock?

Take a closer look at Scotiabank and TD Bank stock to determine which might be the better addition to your…

Read more »

retirees and finances
Dividend Stocks

How to Retire in a Bearish Market

Are you looking to retire this year but are skeptical because of the bearish market? Here is a way to…

Read more »

Target. Stand out from the crowd
Dividend Stocks

TFSA Investors: 2 Stocks to Buy if the Market Drops Even More

We still aren't in a recession, so we still haven't seen a market bottom. If these stocks drop even more,…

Read more »

Woman has an idea
Dividend Stocks

2 Dirt-Cheap Dividend Shares I’d Buy for Long-Term Passive Income

Dirt-cheap dividend stocks should be evaluated more thoroughly than their more stable counterparts for long-term dividend sustainability.

Read more »

stock research, analyze data
Dividend Stocks

3 Oversold Dividend Stocks (With a 7% Yield) I’d Buy Right Now

TSX dividend stocks such as Enbridge and TC Energy offer investors dividend yields of more than 7% in 2023.

Read more »

Dividend Stocks

Is it Time to Buy More of Royal Bank of Canada Stock?

With bank stocks down after the fall of three U.S. banks, it might be time to load up on Royal…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Passive Income Portfolio: 4 Dividend Stocks to Get Started

These dividend stocks offer some of the best and most stable passive income out there if you want to get…

Read more »

Dividend Stocks

TFSA Investors: 3 Oversold Stocks That Should Be On Your Radar Right Now

Consider these three oversold stocks if you want undervalued stocks for your self-directed TFSA portfolio.

Read more »