3 Canadian Dividend Stocks for Lazy Investors

Lazy investors are smart by sticking with good dividend stocks that grow their payouts over time. Here are a few examples.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

By banking on solid Canadian dividend stocks, you can sit back and be a lazy investor. You can earn passive income with little management by holding these dividend stocks that pay out eligible Canadian dividends that are favourably taxed.

When the Canadian bank stocks are cheap, you can accumulate shares to lock in a juicy dividend yield. Right now, Bank of Nova Scotia (TSX:BNS) stock appears to be a great value for passive income.

BNS stock

Bank of Nova Scotia is considered Canada’s most international bank. Its international operations are focused on Mexico, Peru, Chile, and Colombia. Additionally, it has business in the United States. That said, it still derives more than half of its revenues from its core operations in Canada.

Its international exposure could potentially drive higher growth in the long run. However, the bank is still sensitive to the ups and downs of the economic cycle. Precisely, last year we experienced high inflation and rising interest rates that were unfavourable for the general economy.

At $69.19 per share at writing, BNS stock is relatively cheap and offers a juicy dividend yield. It trades at about 8.2 times earnings. It’s a great time for lazy investors to accumulate shares for a yield of close to 6%. On a reversion to the mean, the undervalued stock can climb about 45%, which could take a few years to play out.

BCE stock

Another stock to lock in a high yield is BCE (TSX:BCE). As one of the Big Three Canadian telecoms, it generates substantial cash flows. For example, in the trailing 12 months, it generated over $8 billion of operating cash flow. After massive capital investments in the past few years, the company’s free cash flow should improve for more dividend increases.

BCE has a track record of increasing its dividend for about 14 consecutive years. For reference, its 10-year dividend-growth rate is 5.2%. Its last dividend hike was 5.1%. So, it has been keeping a steady dividend growth of about 5% per year. At $62.48 per share at writing, it’s reasonably valued for a yield of 5.9%.

Brookfield Renewable Partners

It appears Brookfield Renewable Partners (TSX:BEP.UN) stock is setting up for a good year. The stock sold off in a rising interest rate last year. The market seems to agree that it was too cheap. So, it has already led to an 11% rally year to date. That said, the stock still trades at a good value with analysts calling for potential upside of 32% over the next 12 months.

In fact, Brookfield Renewable is a wonderful stock for lazy investors. Because of its investments in key technologies in renewable power, including hydro, wind, solar and power storage facilities and the abundance of global growth opportunities over the next few decades, investors can park their money in it for long-term growth.

BEP rewards long-term unitholders with a growing cash distribution, which it has increased for about 13 consecutive years. For reference, its 10-year dividend-growth rate is 5.7%. It starts you off with a yield of about 4.5% today.

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 Kay Ng has positions in Bank of Nova Scotia and Brookfield Renewable Partners. The Motley Fool recommends Bank Of Nova Scotia and Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

2 Magnificent Dividend Stocks I Plan to Add to My TFSA in June

Have you made your TFSA investments for June? If not, here are two dividend stocks you should consider adding for…

Read more »

Nuclear power station cooling tower
Dividend Stocks

Cameco Stock: An Excellent Uranium Play With Both Growth and Dividends

With clean energy demand continuing to grow, this stock might be a great long-term investment at current levels.

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Is it Too Late to Buy goeasy Stock?

Despite its monstrous gains, goeasy is a TSX dividend stock that trades at a compelling valuation in June 2024.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

Average CPP Benefits at 60, 65, and 70 in 2024: What to Expect

You can supplement your CPP benefits by holding Fortis Inc (TSX:FTS) stock in an RRSP.

Read more »

A worker gives a business presentation.
Dividend Stocks

Want an Extra $1,000 in Annual Income? Invest $15,000 in These 3 Unstoppable Stocks

Given their solid underlying businesses, excellent cash flows, and consistent dividend payouts, these three TSX stocks could boost your passive…

Read more »

A stock price graph showing growth over time
Dividend Stocks

2 TSX Stocks With Great Dividend Growth to Buy Now

Top TSX dividend stocks are on sale.

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

Passive Income! My Top 2 Dividend Stocks for New Investors

These two top Canadian dividend stocks could help new investors create a reliable source of passive income that could last…

Read more »

Electricity high voltage pole and sky
Dividend Stocks

Fortis Stock: Should You Buy, Sell, or Hold Today?

Fortis is down 15% from the 2022 high. Is the stock now oversold?

Read more »