Is your portfolio diversified? Every portfolio needs a few unstoppable dividend stocks that can power your portfolio to new highs. Fortunately, the market gives us a few options to choose from, including the following three.
Renewable energy is huge today and will be bigger tomorrow
TransAlta Renewables (TSX: RNW) is the first of the unstoppable dividend stocks for Canadian investors. TransAlta operates a portfolio of over 40 renewable energy facilities located across Canada, the U.S., and Australia.
Those facilities include wind, solar, hydro, and gas assets. Like traditional utilities, TransAlta generates a stable and recurring revenue stream that is backed by long-term regulatory contracts. Many of those contracts span a decade or more in duration.
What makes TransAlta one of the unstoppable dividend stocks to buy? A growing demand for renewable energy stocks is providing a unique opportunity for TransAlta investors on two separate fronts.
First, that growing demand and, by extension, growing revenue allow TransAlta to continue investing in growth and pay out a handsome dividend. That dividend works out to a generous 6.67% yield, making one of the better-paying returns on the market.
Oh, and let’s not forget that TransAlta’s dividend is paid out on a monthly cadence. This means that a $30,000 investment will generate a monthly income of $166.
Finally, TransAlta has an advantage over its traditional utility peers. Traditional utilities are currently scrambling to transition to renewables, at a considerable cost. TransAlta, however, is already renewable, so the company can invest in growth initiatives.
One final intriguing point to mention is that TransAlta is trading down over 20% year to date. This is an incredible discount on a very stellar stock.
Canada’s big banks are always a great option
It would be hard to compile a list of unstoppable dividend stocks to buy without mentioning at least one of Canada’s big banks. Today, the bank to consider is Bank of Montreal (TSX: BMO).
Like most of its big bank peers, Bank of Montreal offers both a stable domestic segment in Canada and a growth-focused operation in the U.S.
Speaking of growth, Bank of Montreal is focused on completing its whopping US$16.3 billion deal for the U.S.-based Bank of the West. Upon completion, the deal is set to add 1.8 million customers and billions in loans and deposits to Bank of Montreal’s existing U.S. operations.
The deal will also expose over 500 new branches to the bank’s growing network in several key new U.S. state markets like California.
When it comes to dividend-paying stocks, it’s hard to ignore Bank of Montreal. The bank was the first stock in Canada to issue a dividend nearly 200 years ago and has done so without fail since then.
Today, the yield on that dividend works out to a juicy 4.23% yield. This translates into an income of $1,269 given an initial $30,000 investment. As with all investments, reinvesting the dividends until needed can significantly grow your nest egg.
As of the time of writing, Bank of Montreal still trades at a discount in 2022 of nearly 4%.
Wireless data can power your portfolio in the future
When the pandemic hit more than two years ago, many of us had to adjust to working and studying in a remote environment. For some, that arrangement has become permanent. This has made the need for a fast and reliable internet connection one of necessity.
It only seems fitting that telecoms, which already boast a very defensive business model, are now even more appealing investments.
That’s just one reason why BCE (TSX: BCE) is one of the unstoppable dividend stocks to consider buying today.
BCE is one of the largest telecoms in Canada. The company offers subscription-based services to wired, wireless, internet, and TV customers across the country. In addition to its core subscription services, BCE also operates a media segment with dozens of TV and radio stations.
As a dividend stock, BCE really impresses. The company has paid out dividends for over a century without fail. Today, that yield works out to a generous 5.89%, and BCE has provided annual upticks to that dividend for over a decade.
