3 Canadian Dividend Stocks to Buy Hand Over Fist

Are you looking for dividend stocks to add to your portfolio? Buy these three stocks hand over fist!

Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

Many investors buy dividend stocks, because they allow them to build a source of passive income. Over time, that source of passive income could grow large enough to greatly supplement or even replace the income you get from your job. That could allow investors to spend more time on things that they’re passionate about. In this article, I’ll discuss three Canadian dividend stocks that investors should be buying hand over fist.

Start with this amazing stock

When comparing all TSX-listed dividend stocks, Fortis (TSX:FTS)(NYSE:FTS) always seems to stand out from the rest. If you’re unfamiliar with what this company does, it provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean. All considered, it operates a portfolio which consists of about $60 billion of assets under management.

Fortis stands out as an investment for its long history of increasing its dividend distribution. It has managed to increase its distribution in each of the past 48 years. The company also expects to continue increasing its dividend through to at least 2025 at a compound annual growth rate (CAGR) of 6%. That dividend-growth rate could help investors stay ahead of inflation.

Buy one of the Canadian banks

In my opinion, the Canadian banks should feature in every investor’s portfolio. This is because the Canadian banks are such dominant companies within the country. To put their dominance into perspective, four of the nine largest Canadian companies (by market cap) are banks. The highly regulated nature of the Canadian banking industry also makes it difficult for new and smaller competitors to displace the industry leaders.

Of all the Canadian banks, I feel like Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) stands out from its peers. This bank appeals to me because of its unique focus on international growth. Nearly a third of its earnings in 2021 came from sources outside Canada. In addition, this company is a very strong dividend stock. Bank of Nova Scotia has been paying shareholders a portion of its earnings since July 1, 1833. That represents 189 consecutive years of dividend distributions.

I really like this dividend stock

If you’re not convinced by the first two stocks, then consider investing in Canadian National Railway (TSX:CNR)(NYSE:CNI). This is Canada’s largest railway company. It operates nearly 33,000 km of track which spans from British Columbia to Nova Scotia. Canadian National also operates in the United States, running track as far south as Louisiana.

Listed as a Canadian Dividend Aristocrat, Canadian National has managed to increase its dividend in each of the past 26 years. That makes it one of only 11 TSX-listed stocks to reach that milestone. Over the past five years, Canadian National’s dividend has grown at a CAGR of 12.2%.

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 Jed Lloren has positions in BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA, Canadian National Railway, and FORTIS INC.

More on Dividend Stocks

Target. Stand out from the crowd
Dividend Stocks

3 Monthly-Paying Dividend Stocks That Are Screaming Buys Right Now

These three monthly-paying dividend stocks are excellent additions to your portfolios.

Read more »

Growing plant shoots on coins
Dividend Stocks

TFSA Set and Forget: 1 Dividend-Growth Superstar for the Long Run

Manulife Financial (TSX:MFC) stock is in the zone, with dividend hikes and big buybacks likely in the cards.

Read more »

little girl in pilot costume playing and dreaming of flying over the sky
Dividend Stocks

For a Shot at $6,228/Year in Passive Income, Buy 755 Shares of This TSX Stock

Looking for passive income? You'll need to look beyond only dividends. Which is why EIF stock could be one of…

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

TFSA Investors: 2 Dividend Stocks I’d Buy and Hold Forever

These two stocks could provide long-term investors multi-year returns of more or less 10% per year

Read more »

crypto, chart, stocks
Dividend Stocks

Why Waste Connections Stock Keeps Going Up

Waste Connections stock (TSX:WCN) continues to hit all-time highs. But is more on the way, or is an investment wasteful?

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

A Dividend Giant I’d Buy Over Suncor Stock

Suncor Energy is a blue-chip TSX dividend stock that offers you a tasty yield. But this TSX dividend giant is…

Read more »

Two seniors walk in the forest
Dividend Stocks

Passive Income Investors: The Best Bargain to Buy in June

Passive income investors shopping for stocks to own this month will be hard-pressed to find two better options that can…

Read more »

Dividend Stocks

Love Real Estate? 3 Top TSX REITs to Watch in June

For investors seeking exposure to real estate investment trusts, or REITs, here are three top Canadian options to consider buying…

Read more »