2 Canadian Stocks to Buy With Dividends Yielding More Than 4.2%

As the market environment continues to see heightened volatility, these are two of the best dividend stocks to buy now.

| More on:

Image source: Getty Images

Many Canadians see the value in buying dividend stocks. Not only do these companies have the opportunity to grow your money significantly over the long haul, just like non-dividend paying stocks, but they are also returning capital to you regularly, which you can quickly put back to work.

In addition to the passive income you receive alongside your potential capital gains, though, Canadian dividend stocks are also some of the best to buy due to their business operations.

Companies almost never begin to pay a consistent dividend, unless their businesses are well established and are constantly bringing in more cash flow than they’re sending out.

Therefore, many of the best dividend stocks to buy are highly reliable companies, which can also allow them to be much less volatile than the market. This is why they are such excellent long-term investments to make and, particularly, some of the best stocks to buy now.

If you’re looking for top Canadian dividend stocks to buy today, here are two of the best, which are both highly reliable and each offer yields upwards of 4.2%.

If you’re looking for top dividend stocks to buy, real estate is a great place to start

There are plenty of high-quality and reliable dividend stocks that you can buy in the real estate sector. Furthermore, there are plenty of real estate stocks that offer attractive valuations today.

However, one of the very best dividend stocks to buy now is Granite REIT (TSX:GRT.UN)(NYSE:GRP.U), an industrial REIT, which has a tonne of growth potential and offers a compelling yield.

Granite owns industrial properties, such as warehouses and e-commerce distribution facilities mainly across the U.S. but also in parts of Canada and Europe. These are assets that are highly reliable, and with Granite’s occupancy rate above 95% for more than five years straight, Granite is constantly bringing in tonnes of cash flow.

Therefore, on top of the fact that Granite can grow your capital rapidly and offers an attractive yield of roughly 4.2% today, because it’s constantly expanding its business, it’s also continually increasing its distribution to investors.

In just the last five years, Granite’s distribution has increased by almost 15%. Meanwhile, investors have earned a total return of 82% over that period. So, if you’re looking for high-quality and reliable dividend stocks to buy now, Granite is undoubtedly a top choice.

An incredibly defensive utility and infrastructure stock

In addition to Granite, another one of the safest and most reliable dividend stocks to buy for your portfolio is Canadian Utilities (TSX:CU).

Canadian Utilities is a well-diversified stock with operations that are essential, making it one of the best dividend stocks that new investors can buy for their portfolios.

In fact, Canadian Utilities is so reliable that it has consistently paid and increased its dividend for 50 straight years — the longest streak of any Canadian stock.

To do that, Canadian Utilities has had to weather several different recessions and economic scenarios. So, while it’s impressive to achieve a 50-year dividend-growth track record, it’s not surprising, given how defensive its business is.

And today, the stock is an attractive investment, as it offers a dividend yield upwards of 4.3%. Furthermore, in just the last five years, its dividend has increased by roughly 25%.

What’s also unsurprising is that while many Canadian stocks have lost value this year, Canadian Utilities trades just a few percentage points off its high. The stock is one of the least-volatile stocks on the market, making it a perfect investment to help protect your capital.

If you’ve been looking to put some money to work or are looking for safer investments to buy in today’s environment, Canadian Utilities is one of the best dividend stocks there is.

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 Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends GRANITE REAL ESTATE INVESTMENT TRUST.

More on Dividend Stocks

grow dividends
Dividend Stocks

1 Cheap Stock to Turn a $20,000 TFSA Into $267,000

If you're looking to boost your TFSA, you need a cheap stock that you can hold for decades. And I…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 of the Best Monthly Passive-Income Stocks to Buy in Canada Right Now

Here are two of the best Canadian monthly passive income stocks you can consider buying right now to hold for…

Read more »

stock analysis
Dividend Stocks

3 TSX Stocks I Will “Never” Sell

Few companies offer a powerful enough combination of dividends and growth potential to deserve a permanent place in your portfolio.

Read more »

value for money
Dividend Stocks

2 Cheap TSX Stocks for TFSA and RRSP Investors to Buy Now

These stocks look attractive today to buy for a TFSA or RRSP portfolio.

Read more »

Increasing yield
Dividend Stocks

3 TSX Stocks With High Dividend Yields

These three high-yielding dividend stocks would be excellent additions to your portfolio in this volatile environment.

Read more »

Payday ringed on a calendar
Dividend Stocks

New Investors: 3 Top TSX Dividend Stocks That Pay Cash Monthly

Canadian investors looking for monthly dividends have plenty of options on the TSX. Here's three of my favourite stocks for…

Read more »

woman data analyze
Dividend Stocks

These U.S. Stocks Are No-Brainer Additions to Your Portfolio

Buy these two no-brainer U.S. stocks if you want to gain exposure to international stocks in your self-directed portfolio.

Read more »

Value for money
Dividend Stocks

1 Value Stock Every Canadian Investor Should Own

This value stock not only has a solid present, but a stable future at incredibly cheap and even oversold prices!

Read more »