3 of the Safest Dividend Stocks in Canada

Here are three of the safest Canadian dividend stocks you can buy now to hold forever.

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If you want to grow your money in the stock market in the long run, you must keep a large part of your total portfolio invested in some reliable dividend stocks. This way, you can minimize your risks and also expect to receive regular returns on your investments from their dividends. In this article, I’ll highlight three of the safest dividend stocks you can buy in Canada.

A safe dividend stock from the bank sector

Bank of Nova Scotia (TSX:BNS) is the first safe Canadian dividend stock I find worth considering right now. The Toronto-headquartered banking giant currently has a market cap of $78.3 billion, as its stock trades at $65.73 per share without any notable change on a year-to-date basis. At the current market price, Scotiabank offers an attractive 6.3% dividend yield, and it has increased its dividend per share by about 33% in the last five fiscal years.

In 2022, Scotiabank stock fell about 26% to post its worst yearly performance since 2008, as macroeconomic uncertainties led to a broader market selloff. Higher provisions for credit losses and non-interest expenses have affected the bank’s earnings in recent quarters, which could be another reason for keeping its stock under pressure lately. Nonetheless, Scotiabank’s well-diversified portfolio, strong liquidity, and robust balance sheet make it one of the safest dividend stocks to buy on the dip to hold for the long term.

A safe dividend stock from the telecom sector

BCE (TSX:BCE) is another safe dividend stock in Canada you can buy now and hold forever. This Verdun-based communication company currently has a market cap of $54.5 billion, as its stock trades at $59.76 per share after sliding by 14% in the last year. At this market price, BCE stock offers a 6.5% annual dividend yield.

Last year, BCE’s total revenue rose 3% YoY (year over year) to $24.2 billion with the help of robust broadband consumer growth. Despite its higher promotional offer intensity, a rise in its media programming costs, and inflationary pressures, its adjusted earnings in 2022 rose 5% YoY to $3.35 per share. You can expect its financial growth trends to improve further in the coming years, as BCE continues to focus on expanding its reliable 5G network across Canada.

And a safe dividend stock from the energy sector

Enbridge (TSX:ENB) is another reliable Canadian dividend stock you can add to your portfolio now. This Calgary-headquartered energy infrastructure and transportation company has a market cap of $106 billion, as its stock trades at $52.36 per share with a 1.1% year-to-date loss. At this market price, ENB stock has a dividend yield of 6.8%.

If you don’t know it already, Enbridge has raised its dividends for 27 consecutive years, irrespective of economic cycles. To give you an idea about its long-term financial growth trends, the Canadian energy firm’s adjusted earnings jumped 43% in the five years between 2017 and 2022.

As Enbridge continues to increase its investments in oil export and renewable energy segments, its business growth is likely to speed up further in the years to come, which should help this safe Canadian dividend stock soar.

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.

The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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