Investors continue to seek out dividend stocks as some safe income during this turbulent time. But how safe are dividend stocks? It really does come down to the company itself. After all, a company could simply cut their dividend, as we’ve seen many do during the last few years.
That’s why today I’m going to cover the three safest dividend stocks out there right now. Not just on the TSX today, but south of the border as well.
Canada’s only dividend king
There is only one Dividend King on the TSX today, and that’s Canadian Utilities (TSX: CU). Canadian Utilities stock has increased its dividend every year for the last 50 consecutive years. While there are others coming up on that number, it still holds the top spot.
That makes it absolutely one of the safest dividend stocks out there. Significantly, CU operates in the safe utility sector. Not only does it provide power through natural gas, but also through electricity as well. This is important, because as we move to clean energy production, Canadian Utilities stock will be able to continue thriving.
Right now, Canadian Utilities stock offers a dividend yield of 4.37%. Shares are up 13.4% year to date. CU trades at a fairly priced 19.4 times earnings, with a dividend growing at a compound annual growth rate (CAGR) of 7.2%.
Dividend stocks to eat up
Another of the top dividend stocks to consider is in the food industry. Those that offer you access to something we literally need to survive. But of all these companies, I would consider Loblaw (TSX: L) to be one of the safest dividend stocks.
Loblaw stock has multiple sources of income, thanks to its President’s Choice Loyalty Reward program. It’s expanded this program to now include everything from groceries to gas. What’s more, it not only has expensive chains under its umbrella, but low-cost options as well. This has kept revenue strong even during the pandemic.
That makes the company’s dividend not just strong, but thriving. Loblaw stock has a 1.39% dividend yield, and trades at 19.1 times earnings. Shares are up by 10.2% year to date, and it provides you with a CAGR of 9.2% as of writing.
I did say on earth
The last of these dividend stocks I would consider comes from south of the border. 3M Company (NYSE: MMM) is another of the only Dividend Kings out there. 3M stock provides you with a diversified range of tech equipment produced around the world. This includes everything from the healthcare to tech space.
The $64.7-billion company is less stellar when it comes to its recent performance. This mainly comes from slowing growth along with legal troubles that have plagued price performance. However, when it comes to its dividend, 3M stock remains strong. So if you’re able to withstand these headwinds, you could certainly come out far ahead.
Meanwhile, 3M stock offers you a dividend yield of 4.95%. It trades at a more valuable 16.4 times earnings, with shares down 32% year to date. Plus, its dividend is up by a CAGR of 10.5% over the last decade.
Bottom line
Basically, no matter what happens these dividend stocks will keep paying you to own them. So really, the choice is simple. If you’re looking for long-term holds, each of these provides you with an option to last you decades.
