As U.S. equities face continuous volatility, investors have few solid options to choose from right now. With sectors such as commodities and energy also joining in on the decline, there are few places to hide right now. For dividend investors, this provides higher up-front yields and an attractive entry point for many names.
Of course, one of the benefits of owning dividend-paying stocks is the ability to be patient. These companies pay investors to be patient and hold on for the long term. Accordingly, those taking the long view on the markets may want to consider some of these dividend gems.
Here’s why I think Fortis (TSX:FTS)(NYSE:FTS), Enbridge (TSX:ENB)(NYSE:ENB), and SmartCentres REIT (TSX:SRU.UN) are among the dividend stocks worth considering right now.
Top dividend stocks: Fortis
Currently, Fortis owns around 10 utility operations in the U.S., Caribbean, and Canada. This company is focused on distributing electricity and gas to more than 3.4 million customers. Accordingly, this is a top utility company many investors focus on for its size. At the beginning of June, Fortis was a top-15 utility company in North America.
Interestingly, Fortis’s revenue base has jumped from $390 million to $58 billion over the decades. This surge in revenue over time has been followed by profitability, allowing Fortis the flexibility to continue to increase its dividends over time.
And increase its dividends Fortis has. Over the past 48 years, the company hasn’t missed an annual dividend hike. Considering all the economic crises we’ve had over the years, this is impressive. Accordingly, those looking for an established long-term dividend grower will want to consider Fortis right now.
Enbridge
As far as current yield goes, Enbridge is among the most attractive stocks in the market right now. With a dividend yield of 6.5%, investors receive low-beta exposure to the energy sector. Additionally, investors receive high-quality and stable cash flows, which have allowed this company to produce such a return over long periods of time.
Enbridge is among the largest pipeline operators in North America, focused on the export of crude from Canada to the United States. However, Enbridge also has other business lines, including renewable power generation, energy services, gas distribution, and gas transmission. These businesses are all solid, and growing, relative to the company’s core pipeline business.
Overall, Enbridge is a behemoth, transporting around 25% of the oil produce in North America. This company’s renewable energy segment is also growing, cultivating as much as 2,178 megawatts of renewable power in Europe and North America.
Those thinking long-term about energy security and North American energy needs over time may want to consider Enbridge. Indeed, this company’s yield is one of many reasons this stock should be on investors’ radar right now.
SmartCentres REIT
Finally, we have the highest-yielding stock on the list. SmartCentres REIT currently provides investors with a dividend yield just shy of 7%. Indeed, even in this rising-rate environment, this is an equity that’s likely to remain attractive for fixed-income investors in this environment.
As its name suggests, SmartCentres is focused on real estate, structured as a REIT. However, one of the reasons for this trust’s higher-than-average yield is the real estate mix in this company’s portfolio. Focused on retail real estate, SmartCentres has seen its valuation take a hit during the pandemic, leading to double-digit yields in 2020.
While yields have come down, they still remain attractive. And for this REIT, with a range of blue-chip anchor tenants, those taking the long view on the economic future of North America may want to take a stab at this dividend stock on any incoming weakness.
